does this sound like a plan that a trustee would like???

[IamOld]

Guys, finally filed Ch 13.

Plan is around 1400/mo (no worries more than half of this we now pay to IRS plus state in tax installment plan!!!).

So am I correct that:

1) take around say 10% off for trustee (more or less)/mo

2) FIRST around 7K of secured arrears gets paid

3) then IRS for about 3 years they'll then be paid in full

4) around year THREE, our cars will be paid off and then at that time (per lawyer) our payments to Trustee for around the remaing TWO years will increase to be PRESENT TRUSTEE PAYMENT plus FORMER CAR PAYMENTS (so cash-wise a wash).

This means that because of that in years three/four and five, we will wind up paying back most of the unsecureds except student loans...

So my question is - SECURED GOES FIRST, IRS/STATE, then UNsecureds - then cars get paid off, more $$ to unsecureds (assume no changes)...would this look "good" to Trustee that if he looks out for the full five years he sees most people getting most of their money? Which is what would happen...well maybe 50-60% on the dollar by the end of 60 months...

[HHM]

None of that matters...it all comes down to your disposable income. The trustee is going to look at your expenses and see what he can kick out to increase your plan payment, period.

Also, what does your chapter 13 means test (Form B22c) say about your DMI. If the chapter 13 means test shows DMI, that is the amount that MUST get paid to unsecured regardless of any other priority debt.

[IamOld]

None of that matters...it all comes down to your disposable income. The trustee is going to look at your expenses and see what he can kick out to increase your plan payment, period.

Also, what does your chapter 13 means test (Form B22c) say about your DMI. If the chapter 13 means test shows DMI, that is the amount that MUST get paid to unsecured regardless of any other priority debt.

Thanks HHM. Means test shows 1400/mo - that is what we're paying. Our only expense that is higher than usual is medical, because my spouse has two chronic health conditions. I have costs for year from ins co's explanation of benefits for year divided by 12, plus contacts glasses for year/12, plus spouse's ortho (yes don't ask) install payment/12, plus monthly visits/payment, plus MRI's, etc. etc.

I'm trying to get my spouse to get letter from her dr's confirming that a) she's got chronic condition one, and b) that condition two - which is being treated by THE guy for this stuff in our area - around seven surgeries a few years ago plus disability at the time...but I am told we won't bother dr's unless we need to...I figure why not get the letters now - condition two would be from "major prestigious university hospital" and this doc LITERALLY wrote the book on this subject...he is...unquestionable...on this particular ailment.

However, I understood that as we start payments, at first the SECURED people will get paid - that's only about 4 or 5 months, then priority claims IRS/state, and THEN when they're paid will unsecureds begin to get money...

Because we have the high med expenses we've kept everything else to bear minimum...OH - spouses meds plus other prescribed implements costs around $120/month alone...

Apparently my atty files around a dozen cases per day - partner number 1 is a ch 7 trustee...

[IamOld]

Thanks HHM. Means test shows 1400/mo - that is what we're paying. Our only expense that is higher than usual is medical, because my spouse has two chronic health conditions. I have costs for year from ins co's explanation of benefits for year divided by 12, plus contacts glasses for year/12, plus spouse's ortho (yes don't ask) install payment/12, plus monthly visits/payment, plus MRI's, etc. etc.

I'm trying to get my spouse to get letter from her dr's confirming that a) she's got chronic condition one, and b) that condition two - which is being treated by THE guy for this stuff in our area - around seven surgeries a few years ago plus disability at the time...but I am told we won't bother dr's unless we need to...I figure why not get the letters now - condition two would be from "major prestigious university hospital" and this doc LITERALLY wrote the book on this subject...he is...unquestionable...on this particular ailment.

However, I understood that as we start payments, at first the SECURED people will get paid - that's only about 4 or 5 months, then priority claims IRS/state, and THEN when they're paid will unsecureds begin to get money...

Because we have the high med expenses we've kept everything else to bear minimum...OH - spouses meds plus other prescribed implements costs around $120/month alone...

Apparently my atty files around a dozen cases per day - partner number 1 is a ch 7 trustee...

And HHM - forgive me ...but now you scared the you know what out of me! I thought 1400/mo is a lot of money...can't afford much more than that...

[kornellred]

Why does the order of who gets paid what and when cause any concern to you? Your part is to pay the monthly payments, and the trustee has the job of disbursement according to law. Debtors and attorneys do not get to pick and choose the order of payments in a Chapter 13. Neither does the trustee, for that matter.

[IamOld]

Why does the order of who gets paid what and when cause any concern to you? Your part is to pay the monthly payments, and the trustee has the job of disbursement according to law. Debtors and attorneys do not get to pick and choose the order of payments in a Chapter 13. Neither does the trustee, for that matter.

Sorry for the misunderstanding - it matters not the slightest to me - just wanted to - in my mind - lay out the fact that by the end of the 5 years, secureds and IRS will be paid in full, and even unsecureds will be paid handsomely - and thus I hope that trustee will be happy with that...comission after all is around 130/mo then doubles when our car loans end in around 3 years.

[LadyInTheRed]

And HHM - forgive me ...but now you scared the you know what out of me! I thought 1400/mo is a lot of money...can't afford much more than that...

Whether it is $140, $1400 or $14,000 is irrelevant. The trustee will look at your DMI on the means test and at your schedules I & J to make sure the $1400 (plus the increase in payments after your car is paid off) is all of your projected disposable income over the life of your plan. If you can back up your claimed income and expenses, you should be fine.

Don't be scared. Just be ready to produce any documentation that the trustee may ask for to back up the info on your schedules.

[IamOld]

Whether it is $140, $1400 or $14,000 is irrelevant. The trustee will look at your DMI on the means test and at your schedules I & J to make sure the $1400 (plus the increase in payments after your car is paid off) is all of your projected disposable income over the life of your plan. If you can back up your claimed income and expenses, you should be fine.

Don't be scared. Just be ready to produce any documentation that the trustee may ask for to back up the info on your schedules.

THANKS!!!! I am a bit scared though because I can manage another hundred or two...beyond that no...so if he want more than that, we'd have to dismiss the 13, batten down the hatches, have spouse quit job and refile a seven...

[LadyInTheRed]

THANKS!!!! I am a bit scared though because I can manage another hundred or two...beyond that no...so if he want more than that, we'd have to dismiss the 13, batten down the hatches, have spouse quit job and refile a seven...

My philosophy: Once you decide on a plan of action, don't waste your energy fearing what may happen. Just be ready to react if and when something does happen.

[IamOld]

RIGHT!!!! Well the other thing can be is that since I have zero in pension (457 for state ee's) I'm doing the max pre-tax...if he says to reduce that so I just do enugh to get match, so be it.

THANK YOU!!!!