What happens if you don't pay in a chapter 13?

[mom2crazies]

So, if you have a chapter 13 plan and you fail to make a payment or payments. What are the repercussions? Do they garnish? or is it punishable by law?

The reason why I am asking is that I found out from SS that the trustee cannot get an order to divert any SS funds into a chapter 13.

I am not sure if this will keep the court from adding my SS income into the chapter 13 (I'm going to say based on my district and my state that they will still consider the SS for the payments. Which is completely asinine considering they wouldn't be able to get it, if they had an order)

I'm trying to figure out everything myself (like coming up with my own payment plan). I'm starting to get suspicious of my attorney, but honestly I don't think that most attorneys know how to handle a bankruptcy case with SS involved.

[BKParalegal]

What is happening ins your chapter 13 trustee requires a wage order, and only student loans and the IRS can garnish social acuity. So you will have to either have an ECF set up where it draws the funds out of your account monthly or you will be required to send good funds (money order or cashiers check) monthly.

It is not your attorney who does this but the trustee.

Good luck

[mom2crazies]

So, if the trustee were to order a wage order, would it still be held subject to our state law of a maximum of 25% of wages can be garnished by creditors? Would it still be part of the 36-60 month plan? Meaning that would be the maximum length that they could have the wage order in place.

[enginegirl]

if you do not pay your case will be dismissed an you will be back to square one with interest and penalties......

[momofthree]

A ch.13 is voluntary. The trustee will not try to garnish your wages like a collection agency would. If you don't pay, the trustee will dismiss your case as enginegirl said.

[BKParalegal]

So, if the trustee were to order a wage order, would it still be held subject to our state law of a maximum of 25% of wages can be garnished by creditors? Would it still be part of the 36-60 month plan? Meaning that would be the maximum length that they could have the wage order in place.

ok, I can see that you haven't met with an Atty regarding chapter 13 and you are taking small bits of information and confusing it with a lot of nonsensical statements.

When a chapter 13 is filed a validation is made to determine what your payments are going to be for the next 36 to 60 months. And that is how much you will pay the trustee every month. No percentages just a payment amount. For instance if it is $400 a month then you will either have $400 deducted out of your account every month or you will mail it in.

Please try not to come up with theses crazy hypotheticals it is confusing for everyone.

Good luck

[jcj112562]

In regard to the wage order, no it does not have a limit like a garnishment. After all, it is *YOU* that are asking to pay that amount of money in order to satisfy a Ch13 plan, for whatever reasons you have for being in a Ch13. It will be for the amount of the plan payment, issued by the judge. If you do not pay, the trustee moves to dismiss, the judge dismisses, and voila, you are now back where you were before you filed, and here come the creditors again...

John

[kornellred]

A wage order would have been initiated at the start of your Chapter 13 plan. A trustee will not attempt to obtain one if you stop making payments. Your case will simply be dismissed, and then you are on your own.

[mom2crazies]

Please try not to come up with theses crazy hypotheticals it is confusing for everyone.

Good luck

But isn't that the point of this forum? So we can find out what assumptions and questions of ours are true and what aren't? I realize that I am proposing "crazy hypotheticals", but I like to know all possible outcomes when in a situation such as bankruptcy. In our society being ignorant is never an excuse when it comes to things like this.

...and questions should not confuse those who understand the laws.

BTW - Thanks for answering. I just wanted to check and see what was in the rights of the trustee.

[shark66]

Coming from Ch. 7 (I still hope that you end up staying there) into the world of Ch. 13, one has to understand many subtle - or less subtle - differences between the two.

One of them is the power of trustee that each chapter carries.

In 7, you're dealing with someone whose powers are immense, and who can make your life miserable. Very miserable.

In 13, it's all a numbers game. And commission. Sure, they can file this Motion or that Objection, but in the end it all comes down to figures. Make no mistake, it's the judge who gets the final say if the ping-pong match between your attorney and the trustee gets too involved. Trustee can object all he/she wants, when a judge says that one's plan is confirmed, that's it.

My trustee is a decent guy, but the lady who was representing him at my confirmation hearing was a deadly combination of an idiot and a b----h on wheels. She got an earful from the judge and I had to literally bite my tongue to stop myself from dying of laughter...

That being said, I still believe that honesty is the best policy, beginning with oneself. If one has clear goals and is certain that they can be achieved by spending 3-5 years in a Ch.13 purgatory, half of the preparation is done...

Good luck.

[espo1357]

Coming from Ch. 7 (I still hope that you end up staying there) into the world of Ch. 13, one has to understand many subtle - or less subtle - differences between the two.

One of them is the power of trustee that each chapter carries.

In 7, you're dealing with someone whose powers are immense, and who can make your life miserable. Very miserable.

In 13, it's all a numbers game. And commission. Sure, they can file this Motion or that Objection, but in the end it all comes down to figures. Make no mistake, it's the judge who gets the final say if the ping-pong match between your attorney and the trustee gets too involved. Trustee can object all he/she wants, when a judge says that one's plan is confirmed, that's it.

My trustee is a decent guy, but the lady who was representing him at my confirmation hearing was a deadly combination of an idiot and a b----h on wheels. She got an earful from the judge and I had to literally bite my tongue to stop myself from dying of laughter...

That being said, I still believe that honesty is the best policy, beginning with oneself. If one has clear goals and is certain that they can be achieved by spending 3-5 years in a Ch.13 purgatory, half of the preparation is done...

Good luck.

good work, now just find a new picture. I can't take you seriously, and I can't sleep at, looking at the witch!

[shark66]

good work, now just find a new picture. I can't take you seriously, and I can't sleep at, looking at the witch!

I don't take myself seriously, so why should you or anyone else do that...

You got me confused, though...where does the "witch" part come from?

Do tell...

Good luck.

[alorth]

That "witch" is actor Marty Feldman in his famous role as "Igor" in 1974's "Young Frankenstein"!

[shark66]

That "witch" is actor Marty Feldman in his famous role as "Igor" in 1974's "Young Frankenstein"!

Exactly.

But I can't recall any witches in the aforementioned movie...

[mom2crazies]

Thanks Shark. I downloaded the schedule J and filled it out for my attorney and sent it to him, it still shows us as not having extra and I was very honest and I feel it is fairly accurate, actually. I have alot of information to back up my numbers.

However, because I am such a geek and just had to look at the numbers in what I call "worst case scenario" where our SS is included in Disposable Income, I was able to come up with several scenarios showing how expenses should be split between the exempt SS and his salary, The payment plan would still be based off his salary, but acknowledges that there are some expenses that are covered with his salary and others covered by the SS. I would hope that the court would see it as a comprimise (oh and that the judge and the trustee are in grand moods)

My file of arguments is mighty thick

Hopefully, I seem like an educated debtor at the 341 with enough knowledge that the judge listens to me this time.