Talked to lawyer today Very Upset. Please help

[Kevinh]

Lawyer finally back from vacation today so I called and told him that my fiances truck was paid off and I received a significant raise at work and asked if we needed to come in and amend plan. His answer No. So we couldn't be happier. So my next question was hey when does this all end I signed papers for a proposed 36 month plan and first payment was taken out april 2008 so we figured April 2011 would be the end. He said thats usually the case and he would look into it and email me back.

Couple hours later I get an email that states that the Trustee has me scheduled for another 15 months. So I shot off an email back to the lawyer and asked what happened to the 36 months. He stated because in January 2010 we modified the payment due to my fiances pay decrease and medical bills that we still owe 14000 and at the current payment we wont be paid off for 15 months.

Does any of this sound right? I mean even the papers I signed In January 2010 says on Line 4 Length of plan(current) 36 Proposed 36. Shouldn't the January papers have said length of plan(current) 36 Proposed 45? I specificlly remember asking the lawyer in January does adjusting the payment mean more months and he said no.

My Fiance wants to go modify the payment with the extra money I'm making now so that we still get done in 6-8 months but I'm afraid that if we due that they will just change it from a 70% payback to a higher percentage and make us go the whole 60 months.

My Fiance and I are devastated that we have to go another 15 months when we thought we had it down to the last 6. This has made me so sick. So with all you experts out there does this sound legit or is my lawyer nuts. Filed in Ohio if that makes a difference.

[NowImDownInIt]

I don't think your attorney is nuts. Unfortunately.

When I modified in July of last year I went to a 54 month plan from a 36 month plan, because you have to pay the base that you filed on from what I've gathered.

Our income is increasing a bit in January and we discussed going to the attorney to modify, to get done faster but I just don't know.

Since you are at 70%, you are probably right that your increased payment would probably just go toward 100% payback.

I'm sorry y'all are going through this, I had the same thought recently when I realized I'd only have 9 months left had I completed the plan as originally confirmed. Now I'm at 27 months to go. Not fun.

[Kevinh]

thanks for the reply I understand why it would be like that but what I don't understand is why my packet of legal documents that I signed in January still said 36 months. My lawyer should have put on the papers that it was actually 45 months and not 36. After my last post I did a little math and relized in January my weekly payment only dropped 84.00. So I went ahead and did the math as if my payment was never lowered and I still wouldn't have been done in 36 months it would have been 40.

I guess I just figured when you signed a LEGAL DOCUMENT that states 36 month that it meant 36. I also figured when the payment lowered it would mean that the percent re-payment would drop but my January documents state that I went from 55% to 70%. LOL I am so confused at this point.

[kornellred]

What it looks like is that the base amount never changed when the payments were modified. Therefore, 36 months at the lower payment is not enough to satisfy the base, so you must continue to pay until the base amount is covered. Why wasn't the base amount modified with the lowered payment (unless the payment modification was always assumed to be temporary)?
If a debtor in a 60 month plan gets plan payments lowered, the plan base would have to be lowered as well, because 60 months is the maximum number of payments required by law, and the original plan base amount would never be reached.

[Kevinh]

Thanks for the response. My only complaint is that when I asked lawyer point blank in his office the day we lowered payment will this extend my chapter 13 beyond 36 months. Answer: No it states right on your paperwork 36 month plan the only reason the payback went from 55 to 70% is that some of your creditors never filed a claim.

I think he is nuts myself heres another example. Called him up 2 weeks ago his secretary said best way to ask questions is email. Fired off an email letting him know girlfriends truck is paid off and that I Accepted a new job at my company with a MUCH Higher pay should we make an appointment to update my payment. Answer: No need to modify at this time. So now with raise and girlfriends truck being paid off we have an extra 400 bucks a week. This is too good to be true but I am not complaining. Thought about telling him I want payment to go up so I can be done earlier but I think that they would just up the payback percentage from 70 to something higher.