Bounced my Trustee Payment...ugh

[flyinbroke]

This is the reason I am waiting and shopping lawyers. Lawyer 1 would have me rolling the car into a 13 instead of paying separately and wage garnishing because the trustee requires it. Car is nearly paid off, and I don't want to roll it into another five years. IRS bill should be easy to pay off in a couple of payments without paying on it five years, and I refuse to do a wage garnishment when it is not mandatory (which it is not, we have two trustees in my city and one does not require it.) I would rather the company NOT know my business and would rather I have much smaller payments.

[LadyInTheRed]

I originally thought the plan would just include the arrears on mortgage & vehicle & atty fee, with whatever was left after trustee % going to unsecured. But was told we have to pay off the full vehicle in the plan. Was annoyed - I see it as a way the trustee can make more money since he/she gets 5.5% of that.

Ultimately though it is for the best, as it kind of unofficially refi'd the vehicle payment. Had about 3 1/2 years left on it at 10.75%. Now its being paid @ 5.5%, and our plan payment is only about $150 over what the vehicle payment was. (Though for a longer time.)

If the money didn't go to your trustee, it would just go to your unsecured creditors instead. Unless you are paying 100% to unsecured creditors, what difference does it make?

[SMinGA]

True, but it still seems shady in a way for the trustee to take money from unsecured.

If the plan included the arrears but I paid the ongoing payments, that is $318 per month that the trustee would not see 5.5% of.

[justbroke]

Two words: Wage Order

This has proven to be the best way to keep Debtors from forgetting to pay, complaining about paying for certified funds, needing stamps, or writing bad checks.

[BuckeyeGuy13]

I'm on wage order and actually prefer this method. For me, being at a large company, it's fairly anonymous and I don't have to walk into a bank, pay for a way to send my money, or have someone judge me when the payee is "Chapter 13 Trustee."

JB, by the way, I see your payments went up nearly $1800 if my math and memory serve me correctly. Ouch is right. Sorry about that.

[isabella]

I have the automatic wage deduction and I love it. I never see the money so it is good from a budgeting standpoint, not tempted to spend what isn't there. My car payment is also paid thru the plan so I am responsibile for rent, utlities, food and gas.....it makes my budgeting much easier.

[justbroke]

JB, by the way, I see your payments went up nearly $1800 if my math and memory serve me correctly. Ouch is right. Sorry about that.

Yes, it changed, so I converted to Chapter 7. I can't afford that payment without seriously changing my eating habits to include lots of Ramen noodles.