General Question about Plan Approval

[Universal]

If your plan was prepared by an Attorney, isn't it most often accepted by the Trustee and Court? If not, why not? Thanks.

[SMinGA]

I would say it depends on the communication between filer & atty, and common sense/work ethic of the atty.

If the plan is not feasible it won't be confirmed/approved. Not feasible means a) it does not allow enough plan payment to resolve priority/secured debts in 60 months. Or b) it does not leave enough income to pay living expenses outside of the plan. I would chalk a) up to atty error, possibly even incompetence but most likely a simple oversight. (Typo in the #s, math error, etc.) But b) could be poor planning/high ideals on the part of the filer or lack of adequate counsel/attention by the atty. Like a family of 6 may THINK they can live on $300 a month for food, and may have reason for wanting the 13 (save house for example) and so they list that in order to afford on paper their plan - but its not realistic to expect a family of 6 to manage that for 3-5 years.

There was a post (Friday or Saturday) about a plan being dismissed. The poster said his income was $5500/mo. His regular mortgage payment a little over $3800/mo. And plan payment to resolve mortgage arrears $1500. Unless he had a typo in those #s, there is NO WAY one could live on the little $ that remained. And I can't see how an attorney could actually present such a plan.

[Universal]

Thanks SM, so I am assuming, barring some error, most plans are acceptable unless they just outright don't provide at least the minimum to live on.

I am starting to calm down some, but this whole thing has been mind bending and a total emotional breakdown. But I have become more accepting to the whole plan and learned from the credit counseling video, that now I get to be in charge, instead of bowing to some credit card thief that I should have never have gotten involved with in the first place, on a monthly basis.

[SMinGA]

I think so... I think its important to go over your budget IN DETAIL before submitting your expense #s to your attorney. Nearly impossible to think of everything on the spur of the moment, and its important to get it right. The recurring monthly things (rent/mortgage, utilities, etc.) are easy. But the things that happen occasionally or intermittently are easy to overlook. And then sometimes we don't really know what we spend (on food, household supplies, etc.) and the initial ballpark estimate could be way off.

Then when you give those figures to your attorney, he/she should be experienced enough to look it over and question you on amounts that seem high or low. (High could be explainable, such as a family with food allergies, diabetes, etc. could have higher than standard grocery expense. Low may mean you're overlooking something or being unrealistic about an expense.)


Initially we got a complaint from the TT about the plan being unfeasible due to being a 63 month plan. No where in our paperwork did it say a 63 month plan - atty worked it out with the TT that some of our listed debts were at the wrong amounts. I think it was 'off' because I had overestimated some priority debts. Such as at time of filing, I was not sure if we would owe state (some years we have) so we put them in with a $1000 figure 'just in case' and I accidentally gave a # too high for mortgage arrears. But we don't owe state for '09 and the mortgage arrears balance got fixed and we were not trying to do a 63 month plan.