Chapter 13 dismissal notice

[stlrs]

Hello all and Happy Holiday's

Long time lurker, first time poster.

I will try to explain everything.

I filed a 13 in July. I have been paying my payments montly since then. I received a letter in the mail yesterday stating the Trustee is looking to dismiss my case. My conformation hearing was set for Jan. 6th.

Is there something that can be done before then? Do I get a letter stating the hearing is off or I still have to go? I haven't heard from my lawyer about this. The letter states the plan isn't feasible. I'm thinking my monthly payment is to low to satisfy my creditors. I have a baby due in Feb. which means my insurance triples and my monthly expenses obviously go up quite a bit. I'm very concerned. Maybe it will be more feasible after Feb.

Thank You

[HHM]

First, do you have an attorney?

Second, it is the job of the trustee to object to something. If you don't have an attorney, your next move is to call the chapter 13 trustee and find out specifically what the problem is. Depending on the problem, you can either work something out with the trustee, or go to the confirmation hearing. If you can't work something out, then you go to the confirmation hearing on the 6th and the judge will either agree or disagree with the trustees position.

[momofthree]

First off, we need a bit more info. What are you hoping to accomplish in your ch.13? Are you trying to keep a home or non-exempt assets? Do you qualify for a ch.7? What is your dmi? Are you claiming unusually low living expenses to try to fund the 13?

The lack of feasibility argument normally seems to mean (from what I've read, I'm NOT an attorney and have no first-hand experience) that you will not have enough money to live on if you proceed with the filing, essentially, the plan is doomed to failure so they will not confirm it.

The debtor doesn't normally attend the confirmation hearing. Call your attorney first thing Mon. morning. I'm sure he'll know the reasons behind it and be able to advise you on how to proceed.

[stlrs]

Hi,

Yes, I do have an attorney. My letter states at my 341 I was directed to file an amended plan in order to comply. This must've been said after I left the room. My lawyer has not contacted me about this or needing more papers or anything,

I really felt my case would've been very easy. I don't own a home. No car payment. I own next to nothing. I have about $35,000 in unsecured and that's all I claimed. My monthly payment is $100.00 - I think maybe some creditors feel that's to low? I only bring home about $2,300.00 - $2,500.00 per month. Between rent, utilities, insurance, car expenses, groceries etc. it's about $2,000.00 per month in spending. I don't qualify for a 7. I'm over the state limit

[HHM]

then its a routine objection, I wouldn't worry to much about it. If anything, the only fault is that your attorney didn't set proper expectations with you about what happens during the confirmation process. Your attorney (hopefully) will work it out. It is all part of the process.

[stlrs]

Thank You for your input. I hope it's just something simple that maybe my lawyer overlooked. I'm living pretty good w/ my current payment. I'm just getting nervous that when I have my hearing it's either going to get dismissed or my payments are going to go up alot to satisfy the creditors who might've objected. I obviously want to be able to support my baby the best I can and if they raise my payments It's going to be very tight

[free2breathe]

Ok, got my wheels turning here....which may or may not be a good thing! I was just wondering about your family size? You only list your income and you say you are having a baby in Feb.? PA's median income is $44,172 for one and $52,839 for two. Once that little cherub arrives, your monthly expenses are going to skyrocket. Right now you say you have about $300-500 leftover after paying all your bills. The little one could easily cut into that DMI with a big dent, leaving you below the dreaded DMI mark that pushes you into a 13. If the trustee doesn't dismiss, you might qualify to convert to a 7 after the arrival. If he does dismiss, then you can file chapter 7 if you qualify. Again, this is just my brain on overdrive ;)

[stlrs]

Free2breathe

Thank You for the info. When the baby arrives in Feb. it will be the baby, g/f and myself. I'm guessing that would make me a family of 2? The g/f has nothing to do w/ the BK filing. My lawyer told me when I filed about the conversion and other options. I am definitely under $52,000. I'm in the mid 40s. I guess where I stand now is hopefully get in touch w/ my lawyer Mon. to see even why the trustee is looking to dismiss.

[free2breathe]

Household size = murky waters. There is no clear cut definition in bankruptcy, so hopefully the attorney will have some first-hand experience with this in your district. If they accept census definition, household size would be all three of you after the baby arrives. However, since g/f lives with you, her income is a consideration, as well as her contribution to household expenses. I'm anxious to see what your attorney says.

[stlrs]

I am very grateful to all of you that have responded. I'm really nervous about the letter I received. It has to be something to do w/ my laywer not filing something. I was dead set on doing what I had to do in order to get a discharge. I will make sure I post on here this week after I hopefully get in touch w/ my lawyer

[stlrs]

Ok, spoke w/ lawyer today. He informed me that there was 1 objection. This being a loan I have through my 401k. From what I understand this is the amended plan he is going to file and told me it would all be fine. My current payments are $100.00 per month. He says it will stay that way the 1st 4 years. The last year when my 401k loan is done it will go up the amount of what the loan is. In short - 100.00 per month for 48 months and 451.00 per month for 12 months. Is this normal? Does that seem reasonable and something the court will have no issues with? Thank you again

[HHM]

Ok, spoke w/ lawyer today. He informed me that there was 1 objection. This being a loan I have through my 401k. From what I understand this is the amended plan he is going to file and told me it would all be fine. My current payments are $100.00 per month. He says it will stay that way the 1st 4 years. The last year when my 401k loan is done it will go up the amount of what the loan is. In short - 100.00 per month for 48 months and 451.00 per month for 12 months. Is this normal? Does that seem reasonable and something the court will have no issues with? Thank you again

That makes sense. Looks like you got a trustee with attention to detail, for better or worse