Anyone here from ALABAMA?

[Dizzy]

We will be filing a Chapter 13 shortly, but I feel like I've bothered my (will be)attorney enough this week with phone calls to ask questions, so here goes...

1) Will the Trustee ask for tax returns every year for the next five years?

2) What happens if I can't make a payment due to some expensive repair like a car/heat/ac, etc.

3) If I start working in addition to my husband, do I have to let them know?

4) Doesn't it seem unfair (if the answer is YES to the above) that if they are basing a "five year plan" on your income as of right now that if you find yourself with a way to get a little bit ahead they will confiscate your additional income or raise your payments?

[justbroke]

Not from Alabama, but am in the "11th Circuit Court of Appeals" as you are. I'm in Florida.

3) If I start working in addition to my husband, do I have to let them know?

Yes, this will depend on local rules, but you usually do.

4) Doesn't it seem unfair (if the answer is YES to the above) that if they are basing a "five year plan" on your income as of right now that if you find yourself with a way to get a little bit ahead they will confiscate your additional income or raise your payments?

No. In order to get this automatic stay to keep creditors away from you for 3 to 5 years, you have to submit your "monthly disposable income" to the supervision and control of the Trustee.

They are not confiscating your income. You, by asking to have your plan confirmed, have said you'd give all your extra money to the Trustee for distribution to your unsecured creditors. What part of that is unfair?

(FYI, since you don't know me... all my answers tend to be from the point of view of the U.S. Trustee. So, I think through the Court's, Creditors and Trustee's eyes. I don't answer most questions through the eyes of a debtor.)

[pcn]

I'll be watching to see if there's anyone else too. We're in a very punitive state, when it comes to filing. Did you try to get into a 7? We're still exploring the options ourselves.

[Dizzy]

I understand, justbroke, but what i failed to mention is that we haven't had the financial means to pay our household bills for months. We truly are short at least 1500 a month already, before our CH 13 payment will be figured in and can prove it with our bank statements and non-creditor expenses. That
s just basic living expenses, insurance, etc. I can manage to feed a fmily of 4 on 100 a week and that is all I allowed for groceries. If i were to start working we would still be way in the red. Less in the red, but still in the red.

[pcn]

If you are that in the red, why cant you file ch7?

[Dizzy]

If you are that in the red, why cant you file ch7?

Well, we could, but one of our cars was used as collateral on a loan and we can't do without the second car. We are also nearly three months behind on our mortgage and would have to come up with all of that all at once, wouldn't we? We figured out a Ch 13 payment vs doing Ch 7 and reaffirming the loan that holds the car title and the entire 13 payment would be about the same as that one car payment.

[pcn]

But if you are "short at least 1500 a month already, before our CH 13 payment" where will the ch13 payment come from? Not trying to be nosey, I'm probably just confused...

[Dizzy]

But if you are "short at least 1500 a month already, before our CH 13 payment" where will the ch13 payment come from? Not trying to be nosey, I'm probably just confused...

No, that's a great question. I have been to four different attorneysfor consultations in the past three weeks and everybody is basically telling me not to worry about it. I have no clue. No clue whatsoever. I guess I should just do a 7 but what do to about the back mortgage payments and the car loan? I am going to have a stroke over all this.