My husband filed BK yesterday. According to our attorney, his payment will be 206 a month for 60 months. That is for 65,000 unsecured and 6500 secured (car). I was really surprised that the amount was so low. Our combined income is about 6000 a month. Our attorney said that she has never had the amount changed from her recommendation with this particular trustee (the only trustee currently in our area so we know we will get her). Also, we were told that they will not take out tax refund and if we get raises they are ours to keep. That is great news because I am due for annual raise AND I am getting a promotion. By Jan my income will be at least 100 a week miore. She helped us work out a great budget. I am pleased with this. They filed electronically yetserday and expect to have our hearing within 2 weeks. Our first payment (according to the lawyer) will be due in January. I don't now the percentage that secured are getting but unsecured are getting 1% according to these figures. I am holding my breath until the hearing because I am scared to death that something will change.
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Congrats. I hope it will not change. What a deal. 'HubIf I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010. -
Your first payment is due 30 days from when you file, so if you filed yesterday, that payment is due mid-December, not January. You should re-check with your lawyer and make sure, because I think this is one of the things that is actually uniform in BK code, not one of those gray areas that vary from trustee to trustee.
Glad to hear you have a reasonable trustee, it makes all the difference! Ours is also pretty good, and while CH 13 has certainly been an adjustment and no picnic, it has meant that we are actually getting a fresh start rather than extreme poverty for 5 years. I am so much better at living on a budget, but it's not such a tight budget that I have been able to save up for the random "life happens" expenses, like car repair, unexpected medical bills, etc.Filed CH 13 September 17, 2007
Plan Modified July 8, 2009 from $1100/month to $400/month due to change in income, finally discharged in July of 2013!Comment
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Listen to what your lawyer says about the first payment. While the payment is technically due within 30 days of filing, your trustee may require that the payment is made at the 341 hearing. That way there are no "check is in the mail" games. At our 341 in Southern California, we had a few people who had mailed in their payments to the trustee. The trustee's counsel (who runs the 341) was not pleased as it made more work for them, they had to verify the payment had been received before they could proceed with the 341, even threatening to dismiss if proof of payment was not provided by noon that day.
If you are not a 100% plan, I would assume that your tax refunds will have to be pledged to the plan.
Good luck!Comment
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Congrats I file tomorrow afternoon.Filed 11-19-09
341 12-30-09
8 payments down 52 to goComment
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We are not 100% plan but according to our attorney this trustee never asks for tax refunds. I did email our attorney (thanks for the advice guys!) and she did say that the first payment is due 30 days after filing. My husband got notice today of the hearing. It is 12/21 - which would be more than 30 days after filing so we are going to go ahead and mail that payment.Comment
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Taxes
It must vary with trustees because I did not have to pledge my tax returns either, and I'm in a 5yr-7% plan. Basically my lawyer told me make my payment and go live my life.
she did say that its possible that they could request your taxes and up your payment, but usually that only happens if there are any significant increases, but I would only have to submit my taxes if requested to do so.
bottom line for me if it isn't in the plan, than it isn't in the plan. Thank god for reasonable trustees..Comment
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