The Basics

[boomerkae]

Maybe I need a little more education. My attorneys answered a lot of questions in my free consult - but that was months ago.

I've submitted all my paperwork. I've stopped pay CC bills, still pay morgage, slipping on second which I know should be stripped - but was trying to stay up.

We file on Dec 29. Then there is a hearing 45 days later - that is for the creditors to contest - right?

I've been seeing these here about dismissal v discharge - and it sounds like dismissing isn't good. How is it determined how LONG the period will last? I *think* I'm right in knowing that I'll get my payment amount on the 29th, but how is that really determined? If I get an increase at my job, I know I have to report - but does that mean my payment may go up? Is the amount that I am paying over the long haul static?

Where's the bankruptcy for dummies thread? LOL.

Thanks in advance!

[drowning123]

Boomer! You sound like me when I first got here. LOL. Have no fear, we're all here. Listen, just wait for your husband to stop working. Your DMI is -$400. That's good for a Chapter 7. How much over the median are you?

[justbaby]

I think everyone was in the same situation when beginning to file. This forum has tons of information though!!!

You will have the meeting of creditors (341 Hearing) 30-45 days after you file. At that hearing, creditors are allowed to attend to contest but nine times out of ten, they don't. I was worried to pieces about that mainly because I was so far behind on my mortgage. I thought they were going to come to try to get the auto stay lifted..but nothing like that happened. At the 341, the trustee asks general questions about property, job, etc. My case was a bit different, I am married but filed alone due to the fact my husband is self employed AND his name wasn't on the house. I had a few more questions asked about his business but nothing scary. At that time, the trustee pointed out that my income taxes had been calculated wrong causing me to get a bigger refund for the past couple years. SO he did increase my payment by $70. No big deal...it really wasn't worth a fight.

If you do get an increase, you are right, it will need to be reported and its up to the trustee if they will increase or not. I know some say it has to be at least a 10% increase...

[Pandora]

I've been seeing these here about dismissal v discharge - and it sounds like dismissing isn't good.

How is it determined how LONG the period will last? I *think* I'm right in knowing that I'll get my payment amount on the 29th, but how is that really determined? If I get an increase at my job, I know I have to report - but does that mean my payment may go up? Is the amount that I am paying over the long haul static?

Payment is determined by a few things:

1. if you are over median it is usually 60 months in a Ch. 13

2. if under median, it is usually 36 months

But.. there are exceptions to everything (arent there always?):

- You can be under median and still do a 60 month term if you do not have enough DMI to fund a 36 month plan, so it can be stretched out to 60 months.

- If you are over median but at a 100% pay back to all creditors, you can buy out early if you're able to, however BK law states you must be in a CH. 13 plan for at least 36 months regardless (or thats what I'm to understand from reading).

Dismissing vs. discharge: Dismissing your CH. 13 is up to you or the trustee. You can dismiss because Ch. 13 is voluntary, however there are consequences for doing so; the trustee can motion to dismiss for his/her reasons (non-payment, non-feasible, etc). If you get into a Ch. 13 plan and find down the road you cannot make it work, you could opt for converting to a Ch. 7, but thats only if you qualify for it. Discharge of a Ch. 13 usually means you've completed your plan and your Ch. 13 case is finished and closed.

As for what your payment plan consists of - that all depends really - what your exemptions are, if there is any non-exempt equity from items that you opt to keep, any secured debts to be repaid, mortgage arrears owed, priority debts, etc. Once you get confirmed, your order will have what the trustee is demanding in regards to tax returns, increases in income, bonuses, etc. Not all trustee's take everything - some are actually pretty nice about it - ours happens to be one of the nice ones *whew!* however we still reported hubby's pay increase to our lawyer even though it wasnt required. I have all "i's" dotted and "t's" crossed on my end... leaving nothing to chance ;)

[boomerkae]

Payment is determined by a few things:

Once you get confirmed, your order will have what the trustee is demanding in regards to tax returns, increases in income, bonuses, etc.

Confirmation - that means the court approves everything? How long after the 341 hearing is that?

Thanks everyone for all your comments.