Help...Trustee Questions???

[MarieT]

Our meeting of creditors is set up for next week and I am freaking out a bit.

Is there any way trustee could make us leave our house? We owe more than it's worth and our payment is $3,000 a month and our trustee payment is only set at $100. Attorney only said that house payment is "high" and trustee may have problem with it but would not elaborate what that would mean. (We do not want to leave our house and would never have filed BK if we thought that was an option!)

Our attorney says we have a really "clean" BK case since we had not used any credit for a year before we filed and no 2nds on house, also said that the creditors we have never come to meeting. So if the 341 Meeting is next week, then the Confirmation Meeting is end of May, is that when trustee would object to our plan? or is it at the Objections to Discharge date of July 7th?

And why is there only ONE Ch 13 trustee (Sally) in Colorado?

[newbie2]

Normally if there are objections the attorney hears about it prior to or just after the 341. Creditors normally do not go to the meetings, no worries there. As far as your mortgage payment, if your attorney brought it up it may be because of the high payment and arrears that have to be paid in order for you to keep it, with the unsecured creditors receiving very little. I don't know what the allowed rent expense is in your area, but it is rare for a trustee to balk at a mortgage payment. Hopefully your attorney is simply giving you a heads up "just in case" and it will turn out to be a non-issue.

[momofthree]

Why are you in a ch.13 with only a $100/mo payment? With such a low dmi, you should be able to file ch.7. You said in a previous post that you don't have a 2nd mortgage to strip. Why the ch.13?

[MarieT]

Our attorney tried to figure it first with the Ch 7 and it didn't work. Actually, I was the crazy person on this forum for almost a year trying to figure out how to settle with all the creditors...like herding cats! Thankfully, I was at least smart enough to hire an attorney to help me figure out how to settle with the creditors and ultimately the attorney convinced me that BK was the way to go even though I was resisting it.

I feel like an idiot right now but I do not remember specifically why we are doing a 13. The mortgage is not in arrears at all (now). It was at one point because I did a loan mod and the bank would not consider modifying my mortgage until it was at least 3 months late so with that on my record, what's adding a BK to the mix? I have to keep it current as part of the loan mod deal is that they pay put $800 a year on the house principal for the first five years if I make my payments on time.

I had quit paying all the credit cards at least a year ago and had not used any of them for longer than that.