BK 13 in Maryland -- What to expect - help

[Cristo]

I filed Ch 13 on 7/30/2010 and my 341 is scheduled for September 16. I would really like to hear from anybody who has done a CH 13 in Maryland. I am in the Greenbelt district. My lawyer has gone in with a low payment to start, just enough to pay back taxes and my car plus the trustee payment. On the means test he deducted payments for my HELOC which will be stripped and for my second car which will be surrendered. He said he is not sure if that will be allowed, that Maryland has not ruled on that yet. Supposedly I got the easier of the 2 trustees.

Does anybody have experience with this?

Also, after you are confirmed did you have to provide tax returns and give up refunds? Has anybody had their payment increased over the years? Can you pay off a CH 13 early without paying 100%? I had one lawyer tell me you can....

There does not seem to be many people from Maryland on the Forum so I'm hoping that means that ch 13 in Maryland is not as bad as it is in some states. I'm assuming if people are not having a hard time they are not out searching for help on forums like this......

Any help or tips anybody can provide would really help set my mind at ease and help me make it to confirmation.

[EastCoastVA]

I am in Virginia. I just read a recent thread above in this forum regarding the Supreme Courts rulings. The way I read it, you can add those payments on the Means Test which shows all income and all expenses allowed under IRS and certain secured debts currently due. Of course, you can't include the payments you won't have in your budget on Sched. J.

Re Tax Returns. We were told that we had to provide a copy of our tax returns to the Trustee every year. I have read where people are asking about if they should get jobs after confirmation, change their tax exemptions on their paychecks and taking money out of a 401k plan - Personally I don't see how they figure the Trustee won't notice.

Re Tax refund to the Trustee: Depending on how your attorney did your Sched. I & J. Some include an estimated portion of your tax refund as income and figured it in with the Trustee's payment. Other attorneys have a clause in the plan that any amount over $1,000, could be more, received from a tax refund must be given to the Trustee. Regardless, the tax refund issue should be spelled out in the plan you signed. It's a huge issue w/the bankr. crts and you should probably have your attorney explain it in detail. Unfortunatley for us, our attorney did not explain it and the new paralegal he hired did not add that clause into our Ch.13 plan and now we are in a mess - but our case has many attorney/paralegal mistakes and is very complex.

I recall it stated in our Ch.13 plan in big bold letters that we could NOT pay off the plan early unless we paid all of our unsecured creditors in full. Unless the attorney who told you that was referring to some sort of an agreement w/a creditor(s) to settle for less in say two years rather than the five year plan - I am not sure.

I would suggest you google "Bankruptcy exemptions in Maryland" I have seen where other states allow debtors to keep up to $5,000+ of their tax refund and I am not sure if Maryland "opted out" of the Federal Bankruptcy Exemptions like Virginia did and, therefore, we go by our State Exemptions along with the Non-Fed. Bankr. Exemptions that all states have.

Good luck!

[Cristo]

Thanks EastCoastVA, I appreciate your response. I'm hoping you are right about the means test, and the court decision. That's the way I read it too. I have the payments on the means test, but not schedule J so I should be good on that.

I will let you know how it goes. I have my 341 on Sept. 16. My attorney is in McLean, VA and he seems to be good so far. I feel your pain about the paralegal though. I had to dump my first attorney because he was letting a very inexperienced paralegal handle my case. I had to walk away from the $2000 I paid him, but I think it will be worth it in the long run. The payment my new lawyer proposed was about half of what the first one wanted to go with.