ok, I'm a bit freaked out - new budget

[Pandora]

As many know, our 13 plan was just confirmed a short time ago, order stated no tax refunds, salary increases, etc needed to be reported and was double checked by me with our attorney. I was very uneasy about all of it because well, to be honest I've not heard of that before, but some on here stated they were the same way with their orders so I figured "okay...".

Well - yesterday I did our budget up using hubby's new salary and... I feel sick. It's not because we dont have enough $ - its because we have too much now! I just dont see how a trustee will not want to adjust the plan - we will have more than our mortgage payment in extra income and I'm freaked out as hell with "what if's?" He could easily take half of what the increase is (because the other half we'd adjust schedules easily enough) which would turn our 60 month plan into a 36 month, which we could do because we were under median up until a month ago.

Gaaahhh.... I feel sick to my stomach - when I should feel elated. Nagging feeling just says this cannot be possible no matter what the attorney says.

[momofthree]

If it makes you that nervous, then save it all. Every penny. Then if it comes back to bite you, you'll have the funds to pay the higher payment and still have an emergency fund for unplanned expenses. I think you'll probably be okay though. Good luck!

[Pandora]

hiya Mom *ya know..I grin every time I write that*

Yeah thats what I was thinking too but to not touch any of it for 5 long years - would seem impossible. House needs work (its 150 yrs old) and reno's... would be nice to know we could use some of the $ to do needed things.

this is just more stressful than the entire process - bad enough its 5 years, but to worry for those 5 years is even worse ya know? That "what if" keeps coming up - sort of like when your car is fine while under that 5 year warranty - then the day after your warranty runs out - something major happens! Guess thats where I'm at - we get all the way through this seemingly unscathed and when it comes to audit time - someone says "ohhhh...well look at that... no discharge for you! you now owe XXXX in extra payments!"

*sighs*


ETA: and for what its worth - yes we do know we're extremely lucky in our 13 and I'm sorry if it sounds like I'm not grateful that we have extra $ monthly - because we are VERY grateful for it, and I know so many in 13's are struggling to make ends meet. Thats how we were up until this 1st paycheck a few days ago - had just enough to pay the bills and the plan. Just wanted to put this out here in case someone thinks "oh..poor you - whining over having extra money - we should be so lucky"

thanks for listening.

[Okieblue]

I asked one of the atty's I met with, what if...I get a job next year, will I just be working to pay off the creditors even more? They said that I didn't have to report any new income. But, we would have to pony up the tax refund. Things that make you go hmmm.

[rjd78]

I know each trustee is completely different, but in my case, my trustee didn't ask for any more money when my income doubled. I had to inform him of the increase, but my attorney said that he "seriously doubted" that the trustee would ask for more money. That was over 8 months ago, and he has yet to ask for anything.

I suppose it could change when he gets my tax return, however, my attorney said that the cases he's seen where the trustee asks for more money are where someone makes a whole lot more than they previously made. He said that the trustee isn't out there to take me for every penny I make.

That said, from reading here, every trustee is different, and they can basically do whatever they want. But in my case, my salary doubled and he hasn't required me to pay any more than I am now.

[lrprn]

Pandora, discuss your concerns with your lawyer. I think you'll find out that you are worrying about nothing.

After confirmation, it's not unusual for overworked trustees to just not worry about any little bits of extra income that may show up when your lawyer sends your income taxes over every year. Ask your lawyer how situations like this work in your local court. I'm betting you are going to find out that the chances of you losing this extra cash is very small as long as you stay under your trustee's radar and keep making your payments on time.

You are one of the lucky filers who had a good lawyer who created a truly liveable plan. Enjoy the moment and save that cash!

[Pandora]

- Confused on something...

Thanks everyone, I truly appreciate your insight and thoughts. I guess I'm just scared and even a bit confused I suppose. Here - ya'll tell me what you think:

In looking at our confirmation papers / plan it states 45% to be repaid however... looking at 13 Data Center and talking with our lawyer, it states 100%. We have in our plan legal fees, property taxes and the 2nd (which will be stripped upon completion) - so... 13Data relfects Property taxes are at 100%, it clearly states our entire plan is at 100% - and the 2nd is also listed at 100% but will be stripped.

Is this why there's not an issue with pay raises, tax refunds, etc? We are devoting 100% of our DMI - and our property taxes and legal will be paid in full, yes - but the 2nd is only due to get about 30K I guess, which is a little less than half of what we owed to them.

So does the 2nd count as 100% if we're stripping it, yet only paying a portion because our other claim is getting 100%? Where does the 45% come into play?

I'm confused as hell

[cspa522]

The first plan our attorney proposed was for only $550 a month, and I was SHOCKED by that. I had completely assumed that it would be more like $1000, and in fact, I budgeted for it to be $2000 a month, and even at that rate it was still going to give us more breathing room than we've had in ages. We planned to make sure it was cool, and once it was confirmed, to sock away every penny possible for a rainy day emergency.

Now, we haven't filed yet, and we aren't confirmed, so it's entirely possible (and I'm betting it's darn likely) that our plan will be raised, doubled or tripled even, but that's why our attorney is figuring in the maximum for us on everything. The max on food, the max on all expenses, so we can filtch out any extra to save.

Perhaps it's NOT a mistake! I hope for your sake it's correct and you get to save all that money!