Trustee Objection in AZ

[Dominick214]

Today I got a notice in the mail of a trustee objection and I'm not sure what it means for me.

I pay 190 a month since I filed in Aug 2009 and am scheduled for 36 months..

Going through the paper work. I see a problem with an IRS proof of claim 1.

It says the trustee notes that the IRS has filed a priority proof of claim in the amount of $2142.94 for 2005 tax returns and the Debtors plan purposes to pay $3000. The trustee request that the Debtors Attorney address this matter.

Does this mean I was scheduled to pay too much?

The next part in Plan Feasibility comes up. It says,

"Pursuant to the Trustee's Calculations, the Chapter 13 plan is not feasible at this time because it does not comply with 1 U.S.C. 1325 (b)(I)(B). Comparing the Form B22c CMI $3706.44 and Debtor's reasonable expense as shown in Schedule J $3013.59, the disposable income of $692.85, multiplied by 36 months results in a dividend to the unsecured creditors of $24,942.60. Pursuant to the Trustee's calculations, the dividend to unsecured creditors is $2010.59. However, the Trustee reserves the Right to file an amended evaluations requiring adjustments to the terms of the plan, including an increase in plan funding if necessary, in order to address all timely filed proofs of claims once the claims bar date has passed in this case."

What does this mean? That my payment should go up or?

[justbroke]

Yep. Who did your Schedule I/J and Form B22C, your attorney? It reads like your Trustee wants to use a combination of Form B22C and Schedule J. Personally, I thought that the Trustees only use Schedule I and J or Form B22C to determine your disposable monthly income.

I think your Trustee is cheating. This could be because you received some one-time payments or, like me, had rental income that offset your CMI calculation on Form B22C. I would fight like there's no tomorrow if a Trustee attempted to use the CMI from Form B22C and the Expenses from Form J to determine my disposable monthly income (DMI). Trustees should either use the combination of Form I and J... or, in the alternative, use the DMI on Form B22C.

The reason I'm so upset is because Schedule J is "forward" looking and Form B22C is "backwards" looking. In any event, I'd fight.

As for the IRS' claim, yes, you need to adjust your Plan to accommodate the actual claim filed by the IRS. I had to do the same thing, but I didn't get an opposition filed, I just knew to modify my plan. Luckily, my plan hadn't been yet confirmed.

Did you file through an attorney?

[Dominick214]

Thank you.

I did file through my attorney, although I didn't have any one time payments or rental income just regular income through my job.

[justbroke]

You need to sit with your attorney and decide if you're going to fight this, or just update your Schedule J to coincide with your Form B22C. It's appalling, to me, that the Trustee is trying to get away with using CMI less Schedule J to come up with your DMI.

What was your disposable income on Schedule J? Did you have cars that you are keeping? Are they listed on Form B22C, but not on Schedule J (as per the directions!)?

[Dominick214]

I just looked through all the paper work I have and I can't find what I put as my disposable income and all that other information. I don't have any homes or cars to keep. It was supposed to be a real simple easy case I was told at my 341 meeting so it has caught me off guard that I received this letter. I called my attorney earlier and they said if there was a problem I would be contacted so I figure they haven't gone through and assigned someone to me, its the waiting thats gonna kill me wondering whats gonna happen.