General Questions

[ineedinfo]

Hi,

I have several questions.

Had 341 recently, few weeks later there were trustee objections. My question is, is this *ALL* the objections they have, or say these are resolved, can they keep coming back with more objections until some time limit passes?

I'm kind of freaked out, but I understand objections are fairly common.

I'm wondering, do they often change plan payments after confirmations for job changes or raises? I don't have plans or foresee either in the near future, but hopefully it will happen in the next 5 years!

Finally, can you just post your own timeline? I see it in a lot of threads, but would like to compare it consolidated into one thread if people don't mind.

filed
objections
resolved or modified plan
confirmed

One more thing: my car will very likely have to be replaced sometime in the next five years. How do they account for a car payment if you don't have an increase in income during the time period?

TIA!

[lrprn]

I'm kind of freaked out, but I understand objections are fairly common.

In Ch 13, yes, objections are fairly common.

I'm wondering, do they often change plan payments after confirmations for job changes or raises? I don't have plans or foresee either in the near future, but hopefully it will happen in the next 5 years!

Because Ch 13 is not based solely on your finances on filing day but also can be impacted by long-lasting changes up or down in income or expenses, the answer to your question is yes. However, after your plan is confirmed, it's almost unheard of for trustees to come back on their own and re-evaluate your payment structure and plan unless they suspect fraud of some sort.

Finally, can you just post your own timeline? I see it in a lot of threads, but would like to compare it consolidated into one thread if people don't mind.

Our timeline is in my signature. As you can see, we dealt with objections too - one from our mortgage lender and two from our trustee. It took 15 months to resolve them and be confirmed. After that, it's been smooth sailing.

One more thing: my car will very likely have to be replaced sometime in the next five years. How do they account for a car payment if you don't have an increase in income during the time period?

This is why most lawyers will recommend getting another car *before* filing. Yes, it's possible to get a car after filing, but you have to start by getting your trustee's permission to go car shopping first. The recommendation will be to get a car that will have the same approximate payment you have now.

The simplest way out of the car-dying-during-Ch-13 dilemma is to save up a sufficient emergency fund to purchase an older, reliable car for cash. That way nothing changes in your plan.

However, if that's not possible in your case, then you'll have to find a lender willing to deal with you during an active bankruptcy. The terms are going to be terrible with interest rates in the high teens.

It's a definite challenge to finance a car during Ch 13. Your lawyer may be able to help you - they often have a good sense of which lenders in your area are more 'bankruptcy-friendly'. Let's hope your car can limp through the five years successfully.

[ineedinfo]

Thanks so much for taking the time to answer questions.

I would definitely do the older car rather than financing if at all possible.

How do you know how much you can put in savings, though? I would feel safer with at least a month's worth of expenses covered - although I would have to build up to even have that.

[lrprn]

Thanks so much for taking the time to answer questions.

You're welcome. That's why we're here

How do you know how much you can put in savings, though?

How much is enough for an emergency fund depends on lots of things - the area of the country you live in, your family size, how vulnerable your cars, other assets, appliances, etc are to clunking out before your plan is over....I could go on and on. You'll need to think through what amount is best to shoot for in your unique situation, then put the cost-savings plan in motion. Good luck!

[ineedinfo]

Sorry; I was unclear.

I know how much *I* want in there, but how much will a trustee say is TOO much.

I am paranoid about saving up and then them saying that money could go to creditors if you were able to save that much. (If that makes any sense.)

I'm not talking about a huge stockpile; just 1 month or 2 month's expenses. Saved up over time, of course.

[lrprn]

I'm not talking about a huge stockpile; just 1 month or 2 month's expenses. Saved up over time, of course.

As long as your income doesn't increase a great deal (like more than 10%) at once without a matching rise in your expenses, Ch 13 trustees don't have the time or the desire to look at your day-to-day finances or accounts.

Once your plan is confirmed, as long as the trustee receives your payments on time and has no other reason to look at your case again, you should be fine. If you are still uneasy, do ask your lawyer about this, but I'm betting he/she will tell you to save whatever you can as fast as you can. That emergency fund is crucial to surviving your 13 for five years.