Confirmation Hearing

[cc8225]

My confirmation hearing is set for June 1, 2010. I was successful in stripping my 2 and 3rd mortgages (no objections). I know my monthly payment will increase now because of the strips. What happens if very few people file claims does that affect the payback amnount? right now im at 400.00 a month for 3 yrs. I was paying 1000 between the 2 and third so i know the trustee will add that amount to the 400.00. Will i have to pay the entire amount of my second and third during the course of the 3 years?

[SMinGA]

That will depend... If your DMI & plan payment get set at $1400/mo, and your plan goes for 36 months you'll pay about $50,000 into the plan. The trustee will take 5-10% off the top, and your atty will be paid if part of your atty fee is in the plan. The rest will be paid first to priority creditors (mortgage arrears, taxes, vehicle loans being paid in the plan) and anything remaining will be proportioned among the unsecured who file claims. At the end of your plan, any balances remaining will be discharged.

[cc8225]

Thanks, one other question. We have a new baby arriving a week before confirmation, what is the standard expenses for a newborn? I will need to change the schedules and hopefully offset the new payment.

[NoTomatoCan]

Our 2nd child is due about 2 months after our confirmation date, and there isn't really a "standard expense" for a newborn.

Your basic expenses - food, medical, clothing, etc... will all increase. There are some good sites out there that have the average costs for the first year of raising a child. They give good estimates for diapers, formula, clothes, and the other expenses.

You also need to consider daycare if you do not have one parent who is stay at home. Literally, if it were not for our daycare expenses, we would be paying back at least $85k more into our 5 year plan. It can get expensive! If you have a baby due a week before confirmation (so I assume within the next 2 months) than you probably already have your daycare situation lined up. That is a big expense that you need to account for.

The addition of our 2nd child is adding approximately $1,100 per month in additional expenses. (All legit - no padding at all)

[cc8225]

Thank you I will check out some of those sites.