can trustee change term after it has been confirmed.

[puggymoo]

We were confirmed on Jan 14th and are set for 48 months payback at 100%. Now its possible our mortgage company may put a deficiency to the mix to the tune of maybe 100K. Can the trustee change our term after our payments were confirmedand based on actualdeficiency and reduced the payment term.

[lrprn]

A question to clarify first....did you surrender your house as a part of your Ch 13 plan when you filed?

[puggymoo]

Yes we surrendered in December at our 341 meeting. Confirmed on Jan 14th and house went to auction jan.25. The house did not sell. We only had a 1rst paid 200k and had 2 offers 115/118k that were rejected and we had already moved to a rental. The house values are approx. 80/100k now.

[lrprn]

Since you surrendered the home as a part of your confirmed Ch 13 plan, the lender cannot force you to pay any loan deficits. To relieve any concerns about this, contact your lawyer and get confirmation.

[puggymoo]

We just received papers from Metlife(mortgage) and they want the entire balance of the loan. I am so stressed out. They should of objected to the payment plan when they had time.

[justbroke]

We just received papers from Metlife(mortgage) and they want the entire balance of the loan. I am so stressed out. They should of objected to the payment plan when they had time.

This does not affect your plan! You can relax. They have just filed a claim as they should. They are now considered "unsecured". Since you just surrendered it, the entire amount is filed as a secured claim. Once it forecloses and the property is sold, then a deficiency is created. However, this deficiency is nothing more than an "unsecured" debt and they get the scraps just like other unsecured creditors.

It will not affect your plan.

Remember, most of your Chapter 13 Plan payments go to secured debt. The only creditors that can affect the plan payment are your Attorney (for his/her fees), and secured debt that you are keeping (like homes and cars). Since you surrendered the home, they can't ask for the plan payment to increase.

[puggymoo]

Our problem was all of our debt is unsecured. We were suppose to pay 67k over 48 months for the other debt listed. Since it was confirmed at this amount can they change the term?

[justbroke]

Since you are not in a 100% plan or required to pay 100%, then they can't change the amount. The rate to unsecured creditors will certainly go down (less than 67%) when you add in this new unsecured amount.

[ShooFly]

Why not convert to a 7?

[puggymoo]

We can't do a chapter 7 I myself make more than the medium income. We both made 105k last year down from 120k the year before. This started the problem. We had 3 secured loans 1 cc with credit union turned back 2 secured and deficiency is 51k. Fired 1 attorney who should of filed 4 months previous or we could of saved the house. Our new attorney(30yrs exp.) told us to not do it due to 100k underwater.

[justbroke]

Whether you can receive a discharge in Chapter 7 is not about being under-the-median. It's about having allowable expenses that reduce your "disposable income" (DMI) to such a level, that you don't have the means to fund a Chapter 13.

However, since the original poster is paying back $67K on unsecured debt, that indicates that the poster has a lot of DMI left over ($1,395/month). (I earlier misread and thought they posted 67%, and it's 67K.)

[puggymoo]

Just talked to the attorney and he said that our term cannot be changed and it is still being paid at 100% in 48 months and not to worry on the house. We still have a month left for Unsecured proof of claims to be filed and only have 2 for a total of $800. The mortgage company is listed as $0 on unsecured even though they filed a secured proof of claim.

[AKA]

Since you are not in a 100% plan or required to pay 100%, then they can't change the amount. The rate to unsecured creditors will certainly go down (less than 67%) when you add in this new unsecured amount.

Wait, aren't you the one that just told me this: "If you're in a 100% repayment plan, not much affects it. Unless your 100% payback is due to excessive DMI. Otherwise, if you're in a mandatory 100% repayment plan -- due to the calculation of what's known as the Chapter 7 liquidation test -- then nothing would affect the payment amount."

[justbroke]

It works both ways. If you're in a 100% repayment plan, your payment is already maxed out. If you're in a less than 100% plan, then your payment also shouldn't change, but the percentage would go down when additional unsecured debt is added. The key is "why" you're paying 100%. If it's 100% based on excessive DMI, the payment doesn't change but the percentage could go down, unless your 100% is "mandatory".

Example: your DMI is $1,200 and there is $60,000 in unsecured claims filed in your 60 month plan. You pay $1,000/month and are in a 100% plan. If you strip your $60K second mortgage in this Chapter 13, the unsecured becomes $120K, and you pay $1,200/month or $72K which is 60% of the unsecured creditors. Your plan payment went up because you weren't contributing ALL your DMI. If you were already contributing the max $1,200/month so that you you could complete your 60-month Chapter 13 in 50 months ($1,200 x 50 = $60K), then the payment would not change, but the months would increase.

The key is really on the DMI payment and why you are 100%. The liquidation test is special and creates a floor (minimum) that you must pay during your Chapter 7.

[puggymoo]

Our plan was originally set for 60 months 100% payback on 61k plus 6k (67K) with trustee fees. Our trustee noticed that I had 2 loans being paid outside the plan that 1 would in in 16 months so payment goes up to 1400 and then 2 ends 16 months after that one so payment goes up to 1800 for the next 12 months thus shorting the length of the plan. Our attorney says not to worry they cannot change the term once its been confirmed and he will object to mortgage companies claim. The won't get anything because the deficit is unknown and not included in payment plan. They should of objected to the payment plan prior to confirmation hearing.