Huh?! Payment request to trustee BEFORE my 341 and confirmation meetings?

[AKA]

I filed to convert from 7 to 13 on January 31, 2011. I have a 341 meeting scheduled March 16 and a confirmation hearing April 25. However, I just received a letter from the trustee stating I am to make my first monthly payment 30 days from the conversion date, that being January 31, 2011.

Meaning my first payment in the plan is due well before my 341 and confirmation hearings?! Does this make sense to anyone?! Why would I be requested to make a payment before the plan has ever been approved/finalized/confirmed?

[RunningMan]

It's normal. We had to start making payments 30 days after our filing date which was before our 341 and confirmation hearings.

[AKA]

I understand what's happening, but the time line doesn't make sense....doesn't the trustee need to confirm the plan before you make payments? Isn't that the whole point of the confirmation meeting? If I make a payment can the trustee come back and dismiss my CH 13?

[andy158]

Same here. Our first payment was due 15 days after we filed! The 341 and confirmations are for your creditors benefit and anything that changes your payment will be from that point on. I know it is like putting the cart before the horse, but it is normal.

[AKA]

I feel better that this is not anything unusual, but from my understanding, mine is supposed to be 100% repayment, so why the semantics of going through the 341 and confirmation for my creditors if it's already 100%?

Also, do these procedures (341 and confirmation) suspend all foreclosure proceedings? If my confirmation hearing is not until April 25th can I be assured foreclosure proceedings will not proceed until after (I am surrendering the house)?

[catleg]

It's normal for a ch13. You make the proposed payment monthly until confirmation, then the confirmed amount for the rest of the plan.
(Unlike a personal chapter 11, where you don't make payments until a plan is confirmed).
You have the same automatic stay under chapter 13 as under chapter 7. Depending on the situation the bank can file a Motion for relief from stay,
since ch13 plans run much longer than ch7; I think in ch7 they usually just wait it out. (cheaper, cause they know they're going to eat their own legal fees in a ch7, versus a ch13 where they may get money from the plan).
If you are surrendering the house, I guess a motion for relief from stay is almost guaranteed in your future, without it they can't foreclose.

[newbie2]

I understand what's happening, but the time line doesn't make sense....doesn't the trustee need to confirm the plan before you make payments? Isn't that the whole point of the confirmation meeting? If I make a payment can the trustee come back and dismiss my CH 13?

Think about it this way: In most districts your plan length runs by months of payments. The sooner you start, the sooner you'll be finished. (Except in Michigan, we lucky ones pay just like you do- 30 days from filing - and the plan length runs by months after the confirmation date.)

[puggymoo]

We also are in 100% and surrendered house. We have a high payback amount. Just keep checking thepacer or nationa data center 13(free) for current info on who has filed a claim. They may postpone the auction date as well. We are having that issue. Do you only have the house that is technically a secured item? Our bar date is only 3 weeks away and only 1,200 in claims filed and 1300 left for the attorney. Some of our big items (51K) did a charge off.

[daleintampa]

If your plan is for 5 years. it starts the first month you make a payment. I started paying 8 months before confirmation. due to creditors filing claims.

[woeisme]

I think it's to keep people from gaming the system. some (not many, but some) people file CH 13 just to delay a foreclosure or temporarily stymie a creditor, with no intention of actually going through with the CH 13. if they allowed you to not make payments until confirmed, then those who are trying to game the system in states where the courts are backed up so that it's months before 341 and confirmation might file frivolously as a stalling tactic, thus the timeline set so that at least some $ goes into system in the meantime.