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letter from trustee -- question

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    letter from trustee -- question

    I'm currently in 13. My plan was confirmed last Sept. and every paycheck the court gets $834.00. Make a long story short. I received a letter from the trustee over the weekend, saying the Plan is NOT feasible, after they did an audit. Talked to atty, he has a call in to trustee to find out what she wants.

    Anyhow, if they want more money, I'm not going to be able to do it. Our work is talking about going to furlough days (without pay), just don't know how many yet. This would affect money coming out now.

    Worst case scenario: leave 13, do not convert to 7, continue with house payments and home equity. What will then happen with unsecured creditors? All have been sold to ecast settlement. Will interest start accruing again on unsecured loans, or will they remain what they are with 13? I do not want to go to 7, because I would be able to afford the house and home equity, but may have trouble with unsecured. Also, I have a place up north I like, it's paid for, and do not want to lose that.

    Any insight would help.

    #2
    was there a change in a creditor or in the percentage to unsecured? To not have a feasible plan means there isn't enough to complete it in 60 months, so what changed? Do you have mortgage arrears? Why not convert to a 7 and keep the house and the vehicles?

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      #3
      no change in creditors, everything same since confirmation last year. Atty says you cannot keep house and other property and file a 7 on unsecured, it's either EVERYTHING is in 7 or come out.

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        #4
        also, mortgage arrears were six grand, and are now down to less than two thousand, so the arrears are almost paid up.

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          #5
          maybe the auditor just screwed up.

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