Cost of Fuel

[AZBK13]

I did an analysis that proves out how my fuel expense each month has increased by nearly $300 dollars since the plan was approved. This comes from two factors... 1. My daily commute has more than doubled, and 2. the cost of gas has skyrocketed more than a dollar a gallon since we put the plan together. Both factors are out of my control. My analysis uses widely used published data.

The increase is really killing us. I have a registration renewal that is late and I can't pay it until at least next month. The car needs new brakes. It's unsafe. But when my meticulously detailed plan gets thrown down the toilet by this more than significant increase in expense, I can't afford these things, always strugling. I have a budget planned out through September. I can see where things are heading. Gas is only getting more expensive. It's effectively a decrease in income.

My trustee is intent on sapping every last penny from us he can. There is no wiggle room whatsoever. He has been objecting to the plan for over a year and only now that the payment is totally maxed out is he actually going to approve it, with this grossly understated fuel expense. My lawyer wants to keep quiet about this for now and just get the plan approved. But once we get that done I think he will present the fuel issue for me.

What do you think will happen?

Do I have a leg to stand on?

Thanks.

[IamOld]

Right there with you - I need brakes as well...found a buddy of a buddy who'll do it for like $270...don't have it - not till next month at best. Spouse is making live a living hell at home too...

[AZBK13]

270? I plan on doing it myself. Just need to buy the parts!

[IamOld]

:-) As much as I wouldn't necessarily mind...going permanently some days, me working on my brakes...not a good idea!!! In fact for me it's a very very very bad idea. :-)

[walkthaplank]

Is there a reason why you are in a 13? Why not file for CH7?

[AZBK13]

Did not meet the means test.

[walkthaplank]

Maybe you need to have your lawyer run the numbers again. If you can get enough legitimate expenses into your budget (especially with fuel being almost twice what it was this time last year) your lawyer should be able to get you into a CH7. Good luck!

[Pandora]

I'm wondering why your lawyer isnt fighting tooth and nail for the necessities / allowances. ??? Unless you are keeping non-exempt items or have secured / priority / non-discharged debt in your 13 plan - there is always an option to amend your plan.

Ch. 13 isnt meant to be punitive - you should have $ set aside every month in your plan to allow for vehicle maintenance, tags, registration, etc etc etc. If your trustee thinks you're too high in some areas in your plan but lower in others - then you pad the other areas and pull from there.

[AZBK13]

Maybe you need to have your lawyer run the numbers again. If you can get enough legitimate expenses into your budget (especially with fuel being almost twice what it was this time last year) your lawyer should be able to get you into a CH7. Good luck!

My lawyer gave me the impression that income was the sole factor in determining eligibility for chapter 7.

[IamOld]

AZ - it sounds like your lawyer rather keep Trustee happy...my atty would have put every real expense he could think of against 13 to get into 7...of course to have another lawyer look at your case would be..difficult right???

[Peeps]

It is not the only factor. As others have already mentioned, your expenses can be factored into the evaluation. The test many people use for determining eligibility for a Ch. 7 is not raw income, but the disposable monthly income left over after completing schedules I & J. You could use the forum's search function to learn more about DMI, and schedules I & J if you're so inclined. It might work out very well for you... especially since you appear to have some pretty robust documentation supporting your expenses.

Your attorney & trustee make more money if you file a Ch. 13 (granted, they also have to do more work through the process). You might have to arm yourself with more background info in order to assure you get what YOU want out of the process. After all, it's your BK, not theirs. Best of luck to you.

[AZBK13]

Wow. I had no idea. He really did tell me that it was solely based on income and that it's not even close. That was a year ago before my wife's income was reduced (state worker), my commute more than doubled, and gas went through the roof.

He is not the best lawyer. Our case got dismissed through his inaction. I have been on the phone every day looking for confirmation that it has been re-instated. The creditors are calling again, got an intent to garnish letter, vehicle could be repo'd etc.

Once it's re-instated and I can breathe again I will definitely pursue this with him.

[IamOld]

Wow AZ - good grief - how could the lawyer let the case lapse? (Maybe this could give you a window to talk to someone else?) That sounds like almost malpractice....

[AZBK13]

Agreed. He is spread too thin. It's obvious. I have to take a much more active role in this, and I already have by basically following up on everything to make sure it's getting done. But I think I need to be even more active. If there's any chance I could get a Ch 7, well obviously that's what I want.

[IamOld]

Right! Of course I've been told by my atty's paralegal to lay off as I got annoying - admittedly...oh well...again, I think you have to keep on top of it...as it truly only matters to you!!!!