Length to get plan confirmed

[KLH547]

Just out of curiousity, how long did it take for most to have their plans confirmed? What were the biggest issues? Did anyone run into issues with what the Trustee said you could pay vs. what you could actually pay?
Any info would be great!

[ando]

The last meeting I had with my lawyer recently , brought all receipts he requested , and told me that I passed the means test , about $130 left over after he performed the means test. So that means I qualify for 13. then he told about a new law that I can give the trustee a lump sum payment to satisfy my obligations and get the discharge. As of now, it's been a week since meeting with him, hasn't heard from him yet.

[liz417]

The last meeting I had with my lawyer recently , brought all receipts as requested , and told me that I passed the means test , about $130 left over after he performed the means test. So that means I qualify for 13. then he told me about a new law recently passed regarding bankruptcy that I can give the trustee a lump sum payment to satisfy my obligations and get the discharge. As of now, it's been a week since meeting with him, hasn't heard from him yet.

Lump Sum for a discharge?!? That was pre bk laws 2005, as of right now, I haven't heard of anyone being able to "buy out" of their ch 13 plan UNLESS it is at a 100% payback.

[ando]

yup, that's what he told me Liz. He said that it is a new law and he can do it.

[liz417]

yup, that's what he told me Liz. He said that it is a new law and he can do it.

Great! Come back and let us know because that is a "topic" everyone in a ch 13 wants to know

Good Luck!

[Billssuck]

Me too...I would like to know more about that...although I don't have a large lump sum of money to give to them...

[getmeouttahere]

Just out of curiousity, how long did it take for most to have their plans confirmed? What were the biggest issues? Did anyone run into issues with what the Trustee said you could pay vs. what you could actually pay?
Any info would be great!

We filed on 12/5/08 and were confirmed on 4/15/09. After our 341, the trustee had a bunch of objections which included life insurance policies, food and entertainment expenses, etc. We submitted all the info they requested including mounds and mounds of receipts proving our expenses.

We were expecting to go to our confirmation hearing fighting for a reasonable payment we could live with. The night before the hearing, our attorney called to say our plan was approved and we need not show up to the hearing. We were also trying to strip our 2nd, which was granted and signed by the judge.

This was our story. I hope this was the kind of info you were looking for. Good Luck to you.

[KLH547]

We filed on 12/5/08 and were confirmed on 4/15/09. After our 341, the trustee had a bunch of objections which included life insurance policies, food and entertainment expenses, etc. We submitted all the info they requested including mounds and mounds of receipts proving our expenses.

We were expecting to go to our confirmation hearing fighting for a reasonable payment we could live with. The night before the hearing, our attorney called to say our plan was approved and we need not show up to the hearing. We were also trying to strip our 2nd, which was granted and signed by the judge.

This was our story. I hope this was the kind of info you were looking for. Good Luck to you.

That's exactly what I was looking for! Thanks so much!

[justbroke]

Just out of curiousity, how long did it take for most to have their plans confirmed?

My plan took 5 months to confirm.

What were the biggest issues?

None! I did have an objection to confirmation from an auto lender, but that was quickly fixed. My vehicle was a 910-vehicle, but I was trying to get it excluded because I bought it for my wife. Nice try, but that was quite easily rectified with a quick call to the lender's attorney!

Did anyone run into issues with what the Trustee said you could pay vs. what you could actually pay?

While my payment (below) shows in dispute, it's over $56.00/month.

[justbroke]

...about a new law recently passed regarding bankruptcy that I can give the trustee a lump sum payment to satisfy my obligations and get the discharge...

Yeah, have your lawyer mention that actual section of the bankruptcy code which allows that. The new law (recently passed in 2005), is what prevents such a thing. Unless your lawyer meant a lump sum of 100%.

Don't get us wrong with our skepticism. We would like to see an actual documented post-BAPCPA case where a debtor bought out their Plan for less than 100% of the allowed unsecured claims.

[sassiebaz]

Can someone explain "confirmation" to me? I posted a new thread about what can go wrong in ch13. I guess I'm still not in the loop on how it all works. We had our 341 June
10th. I have made 3 payments so far. Am I still waiting for something else to happen? The last contact I have had with my lawyer was an issue about our car lienholder not wanting to come get the surrendered vehicle. What else is going to take place???

[justbroke]

Can someone explain "confirmation" to me? I posted a new thread about what can go wrong in ch13. I guess I'm still not in the loop on how it all works. We had our 341 June
10th. I have made 3 payments so far. Am I still waiting for something else to happen? The last contact I have had with my lawyer was an issue about our car lienholder not wanting to come get the surrendered vehicle. What else is going to take place???

Yes, you are waiting for Plan confirmation. Chapter 13 is must different from a Chapter 7. In a Chapter 13, your bankruptcy stay open (pending) until you satisfy the terms of your Plan. Your Plan is what dictates what you pay to each secured creditor, priority unsecured creditor, and what the pool is for the general unsecured creditors.

Plan Confirmation is more than a mere formality. It's the acceptance of your creditors of your plan of reorganization (what you'll pay to who over what term and what percentage, etc) and/or the Court's agreement that the Plan is acceptable. Once confirmed, your Plan is basically your "contract" for the next 36-60 months.

Since you are represented by an attorney, you don't have to go to any of the confirmation hearings. Your attorney does all that for you, making sure that your plan gets approved (confirmed). You really have nothing to do but to keep making your Plan payments and don't miss any!

[ando]

Yeah, have your lawyer mention that actual section of the bankruptcy code which allows that. The new law (recently passed in 2005), is what prevents such a thing. Unless your lawyer meant a lump sum of 100%.

Don't get us wrong with our skepticism. We would like to see an actual documented post-BAPCPA case where a debtor bought out their Plan for less than 100% of the allowed unsecured claims.

Will do Justbroke, I am waiting to find out myself, that's why I paid my lawyer . he told me he is trying to work out a deal with the trustee so I can pay him a lump sum and get it over with. I am new to all this and don't have any idea how this work . I guess he meant , since I have some equity on my house that equals more than my debts , he is trying to offset that equity with a lump sum buy out so I can walk free .He is also using medical and other expenses to convince the trustee to accept.

Let everyone know, this is not a done deal yet , he presented me with this idea at his office last week , and I am waiting to see what comes out .will post to keep you informed.

[justbroke]

Will do Justbroke, I am waiting to find out myself, that's why I paid my lawyer . he told me he is trying to work out a deal with the trustee so I can pay him a lump sum and get it over with. I am new to all this and don't have any idea how this work . I guess he meant , since I have some equity on my house that equals more than my debts , he is trying to offset that equity with a lump sum buy out so I can walk free .He is also using medical and other expenses to convince the trustee to accept.

This makes more sense. A 100% payoff of the allowed unsecured claims using equity in the home. This is done often, but does require approval of the Trustee and the Court.

[lrprn]

We filed in June 2006 and quickly got three objections to our plan - one from our mortgage lender saying we were in arrears when we filed (we weren't) and two from our trustee related to repaying my husband's loans from his retirement fund and the discrepancy between the disposable income showing on our Means Test and the higher disposable income indicated on Schedule I minus Schedule J.

Outcome on the mortgage objection - after negotiations with our mortgage company stalled after six months, our lawyer forced our mortgage company into court asking the court to set a court date to prove their allegation we were late paying our mortgage on our filing date. The mortgage company was a no-show on court day (we had proof on the mortgage company's own letterhead that we were up to date on our payments on filing day). Because they were a no-show, the judge threw their objection to the curb . One objection down.

When we filed, the current bk law was pretty new and there were lots of gray areas, especially on the Ch 13 side. Our case was the perfect one to clarify the two trustee issues. We had a hearing in front of the judge who ended up ruling in our favor that we could pay back retirement loans and still contribute our allowed 5% each to our retirement accounts. However, in the discrepancy between our disposable income showing on the Means Test vs. our Schedules, the judge ruled for our trustee stating that the Schedules amount should be the one used to determine our disposable income. That raised our monthly payment $150/month.

From filing to confirmation took us 15 months. In the end we ended up helping a lot of people across the country at that time regarding the new case law created that allowed retirement loans to be paid back and retirement contributions to continue simultaneously during an active 13. We also were able to clarify whether the Means Test or the Schedules win out in our district determining disposable income. I get a lot of satisfaction from that!