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Payment Increase - Need help!!

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    Payment Increase - Need help!!

    Hi-

    I am having a panic attack.

    Some basic facts about our case:
    -We are Pro-se. We did not have a complicated case (no assets) so it went pretty smooth.
    - We have priority claims of $15k (taxes overdue) and $75k in unsecured debt (about $10k in credit cards and $65k in student loans which I am required to pay in full even after the bk ends)
    - Our plan calls for paying the priority claims in full and less than 1% to unsecured.
    - Our plan is 4 years @ $675 per month.

    I received a letter from the Trustee today that states:
    "Please take notice that, based upon the terms of the Order Confirming Plan which provide that this is a base plan with Debtor paying #32,400.00 into the plan as disposable income, and based upon the claims filed in the within case (as more fully set forth in the court's claims register), it appears that the unsecured creditors in this case are entitled to a higher dividend than provided in the confirmed plan. Accordingly, the Trustee will increase the percentage to be paid unsecured creditors to meet the base plan amount set forth in the Order Confirming Plan. If you wish to oppose this action, you must file and serve n the interested parties in this matter an objection and request for hearing within 20 days of the date of service of this notice."

    Questions:
    1) Should I object to this so I can have the opportunity to show up at the hearing and possibly plead my case not to increase the payments?
    2) Do you think they will increase the payment amount or extend the plan, or can they do both?
    3) The statement does not say what they want to change my plan to. Can I find out in advance or am I just going to get a nice surprise in the mail?
    4) If I want to object is there a form I fill out or do I just send a letter?

    Hope I can get to sleep tonight!

    Any advice would be GREATLY appreciated!!!!!

    #2
    I may be totally off base here, since most of my study has been chapter 7, but I don't think this means anything at all from your perspective.

    It sounds like fewer creditors responded than were expected.

    The money will stay the same at $675/month, but since fewer creditors are being paid, the percentage increases accordingly.

    If I am correct, and that is not certain, this is only a bookkeeping notice more than anything, and won't affect you or the plan.

    Someone else can surely offer a more concise explanation if needed, or corrections if needed.
    11-20-09-- Filed Chapter 7
    12-23-09-- 341 Meeting-Early Christmas Gift?
    3-9-10--Discharged

    Comment


      #3
      Sounds like you need to check out the current claims register as the letter does allude to more detail there.

      As stated above, it certainly *looks* like just a bookkeeping notice.
      260 weeks down / 0 to go! Awaiting close & discharge.

      The only real mistake is the one from which we learn nothing. ~John Powell

      Comment

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