Got a letter today - Trustee is denying confirmation of the plan???

[cspa522]

Got this in the mail today. I've emailed my lawyer, but frequently you all are faster to respond. What does this mean?



Comes now John (trustee's name) Standing Chapter 13 Trustee, and for his objection to confirmation states as follows:

1. Debtor lacks sufficient income to fund the plan.

Wherefore the Trustee prays the Court enter its order denying confirmation of the proposed plan.

Should I be worried, or will the lawyer just propose a new plan? Does this mean they think our proposed payment is too HIGH?

[cspa522]

Okay, I'm going to answer my own question so that if anyone ever searches for this information, my post has it! Just heard back from the attorney and I'm dancing at the possibilities!

This is what she said: "If you have to have an objection, this is the best one to have.

We take no action whatsoever and the Judge routinely overrules this objection as long as you are current on your plan payments.

The confirmation hearing has been continued to 2/17. You will not need to appear. I fully anticipate the Judge confirming your case at this time despite this objection. It is a “proof is in the pudding” type of overrule – the Judge says if you are making the payments that is good enough, even though the Trustee doesn’t think your income can support the payment.

Does that make sense?

Have a good weekend!"

I'm stunned by this, honestly. I anticipated, like most people probably do, our Trustee saying "They need to pay more into the plan." Because...well, that's the negative type of person I am. I never anticipated our proposed payment being the real, actual thing. Hooray! Here's hoping!!

[Flamingo]

Got this in the mail today. I've emailed my lawyer, but frequently you all are faster to respond. What does this mean?



Comes now John (trustee's name) Standing Chapter 13 Trustee, and for his objection to confirmation states as follows:

1. Debtor lacks sufficient income to fund the plan.

Wherefore the Trustee prays the Court enter its order denying confirmation of the proposed plan.

Should I be worried, or will the lawyer just propose a new plan? Does this mean they think our proposed payment is too HIGH?

The trustee is objecting to your submitted Plan because, after review, he believes you don't have enough income to fund the plan and your chances of failure are high. The trustee will not agree to a Plan that he/she feels will fail. I am amazed your attorney feels that after just two payments this would slide past. The trustee is looking beyond that. I am also surprised your attorney didn't ask further questions of the trustee as to his/her findings. If I were you I would be concerned as to the Trustee's finding because he/she feels there will be a problem with your Plan. I am assuming you are trying to keep some assets.

[cspa522]

The trustee is objecting to your submitted Plan because, after review, he believes you don't have enough income to fund the plan and your chances of failure are high. The trustee will not agree to a Plan that he/she feels will fail. I am amazed your attorney feels that after just two payments this would slide past. The trustee is looking beyond that. I am also surprised your attorney didn't ask further questions of the trustee as to his/her findings. If I were you I would be concerned as to the Trustee's finding because he/she feels there will be a problem with your Plan. I am assuming you are trying to keep some assets.

My attorney said she knows the trustee and the judge overseeing our case and based on that doesn't forsee it being a problem. I will, however, keep things up to date on here and let you know!

[HHM]

This is VERY ROUTINE. based on your sig, you just had your 341 meeting. Everyone's chapter 13 gets an objection from confirmation by the trustee.

Now the REAL work of a chapter 13 begins, the confirmation process. Your attorney (hopefully) will sort out these issues, negotiate and battle with the trustee, and eventually file a modified plan that everyone can agree one.

[cspa522]

This is VERY ROUTINE. based on your sig, you just had your 341 meeting. Everyone's chapter 13 gets an objection from confirmation by the trustee.

Now the REAL work of a chapter 13 begins, the confirmation process. Your attorney (hopefully) will sort out these issues, negotiate and battle with the trustee, and eventually file a modified plan that everyone can agree one.

Thanks for the response. My attorney has been dead on correct about everything else so far, so I'm going to trust her on this one. If problems arise, then I'll object and see what can be worked out. Thanks!