Length of Plan Doesn't Start Until After Confirmation?

[UpsideDownMI]

Is it true that the length of your plan does not start until your plan has been confirmed? A lawyer told me that I would have to begin making payments based on my proposed plan within 30 days of filing, but the plan length would not start until it was confirmed. He basically told me that the "clock" for a 3 or 5 year plan does not start until it has been confirmed. This seems crazy to me, as the plan could be challenged which could delay confirmation for months.

[getmeouttahere]

We are also from MI and your attorney is correct. In our state, the plans begin at confirmation. We filed in Dec. 08 and were confirmed in April, 09. So, basically, we are paying 5 years and 3 months. I agree it's "crazy" and I don't think it's right as it takes some longer to be confirmed.

[BigJohn]

What happens if it takes over a year to get confirm and you are in a 5 year plan, does mean you have to pay for 6 years?

[Billssuck]

I live in MO and I just got confirmed on 7/14 ....yeah! Anyway, I'd like the answer to that question for my state. I think I'll shoot off a quick email to my lawyer.

[oldhack]

I think it depends on if, and how much, you pay to the trustee between filing and confirmation. My 43-month case was 43 months from filing -- but I began paying within 15 days of filing, and the amount I paid was within 10% of what became my regular payment. Additionally, my case was confirmed within 2 months of filing, anyway -- but, the trustee had money from those two months.

[newbie2]

I am also in Michigan, Easter District.

Yes, this is absolutely true. We made our first payment within the 30 days, but not confirmed for 90 days after filing. Makes our plan 63 months and not 60.

[Flamingo]

I believe this is state based as this has all been discussed heavily in this forum before. Everyone would need to check with their attorney.

[rrockinggramma]

Michigan tries to confirm everyone within 3 months of filing. I too discovered Mi rule about the plan starting to count at confirmation. But I wasn't told about it until I thought I was DONE and then found out I had to pay for 3 more months. At least you found out at the beginning. No money is paid out either until after confirmation and the attorney is the first paid with secured creditors second. No unsecured creditors are paid until all the secured debt is paid off first. They don't make monthly payments to any unsecured until then. But it all worked out good because my car was paid off completely within months of filing and my finance company released the title long before my plan was completed.

[UpsideDownMI]

Thanks for the replies! I hope that when I file, confirmation does not get dragged out.

[aa06a47]

Shouldn't get cofused here, the BK code is very specific that a plan shall not exceed 60 months. That times starts with the first payment. However, most often the plan payment is different from the payment you made when you filed. The difference between the filing amount and the confirmed amount must be made up. You are not penalized by a long confirmation process.

If the clock doesn't start ticking until confirmation, it would be easy to be tag teamed by objections from creditors to increase your time in the plan and there pay off amount.

I had those same questions 3 years ago when I filed. That is the information my attorney gave me back then.

[holding on]

Yes, this topic has indeed been discussed heavily, but never totally put to rest. Some say no way bk can go past 60 months, yet people in this thread are saying theirs does. Maybe one day we will know for sure.

[lrprn]

Yes, this topic has indeed been discussed heavily, but never totally put to rest. Some say no way bk can go past 60 months, yet people in this thread are saying theirs does. Maybe one day we will know for sure.

So far, I think the only members we have that are stating their Ch 13 cases start the month countdown at confirmation rather than at filing are in Michigan.

Personally I would love to see how the Michigan bk courts came up with this scheme and justify it since it's a direct contradiction to the national bk law code that clearly states that Ch 13 cases cannot run past 60 months unless the final trustee audit shows a deficiency in what was owed over the life of the plan. (Either that or our MI members are having a group hallucination )