Question about timely filing by creditors!

[NYHusband]

Hey everyone.

Wife and I filed for a Chapter 13 in January, 341 was February 23 and went smoothly. We're not confirmed yet, the lawyer and trustee are going back and forth regarding 401k contributions. Hopefully they'll agree soon and we can get things settled.

My question is this - I am aware that creditors have 90 days to file unsecured claims. Looking at 13datacenter, it seems that almost all have filed - except Citi. We each had a credit card, with a very large balance, and they haven't filed either, nor sold the debt that I can tell. May 24 is the 90 day mark - this is the cutoff even though we're not confirmed, right?

If they don't file, we may just squeak into a 100% plan which would make things slightly simpler. I don't have any expectations of them missing the date, but I'm just curious if that really is the final cutoff?

Thanks!

[frogger]

Legally, it is the cutoff date. I have "heard" of some late claims coming in in some districts, but don't see it happening in my district. Just be patient until the 24th and see what happens.

And... use pacer. It's the real deal.

[IamOld]

NYhusband - I'm curious if I may (13 here too just filed...) is the issue re the 401k that trustee wants you to NOT contribute at all, or something that is no more than what you need to get employer match? Because right now, until I started my current job after layoff, I had ZERO spouse had ZERO.

[NYHusband]

Ours have always been around 9% - I don't receive any match, my wife receives some. The trustee hasn't said what they think it should be - just objected to it.

[IamOld]

Ours have always been around 9% - I don't receive any match, my wife receives some. The trustee hasn't said what they think it should be - just objected to it.

Object to ALL of it? Wow - so then "public policy" expects you to live in a box or be a "ward of the state" when you're old...makes sense!!! I would frankly, rather pay more to Ch 13 - because I'm assuming if, say, you contribute $100/pay (say $200/mo) and trustee objects to the $200/mo, you could "just" agree to pay $200 more and keep the 401k going...? (are you in NYC by any chance? Just trying to figure out if this is an urban v rural "thing"...)

[NYHusband]

I'm sure we'll be allowed to contribute - I just don't know what % they'll allow. We're a high income/high debt case. In the end, if they say we can only put in 6% and the other 3% goes to the case, then I'm sure it's up to us if we want actually change the contributions - it would come from discretionary spending. We're not in NYC, upstate.

[IamOld]

I'm sure we'll be allowed to contribute - I just don't know what % they'll allow. We're a high income/high debt case. In the end, if they say we can only put in 6% and the other 3% goes to the case, then I'm sure it's up to us if we want actually change the contributions - it would come from discretionary spending. We're not in NYC, upstate.

Understood and THANK YOU!!!!! I suppose we could have BEEN considered high income before the layoffs - actually we had "high" income last year only because of 401k withdrawals (I know stupid) to pay bills. Our unsecured debt isn't "that much" - "only" $60K, $50K to IRS - and...an ungodly sum to Sallie Mae. I hope when the TRustee/Trustee's office looks at the total, someone will say - aha - it's the NON-DISCHARGABLE student loan (which will be paid till the day I die or turn 67 whichever may come first) that makes this an ungodly sum - and won't look at it as "high debt..."

[NYHusband]

Checked out Pacer for the first time. Don't see anything about claims filed in there.

[NYHusband]

On a side note, I just got a call from our lawyer's assistant. We're up for confirmation tomorrow pending two items.

1) $300 increase over the payment we've been making - cutting 401k contribution increases taxable income, so effectively we'll have to bring it down to 2-3% of income to make that level out

2) They're insisting on payroll deduction, even though it's not a requirement in our district. I flat out refused. The new payment will be $2250.00 x 60 mos. It's about 30% of our monthly take home income, and I have to budget and save throughout the month to make the payment. We get paid bi-weekly, opposite weeks from each other - I've gotten a handle on which checks I can save the bulk of this from, not whose check - one is lower than the other. It will mess me up if they take it directly!!

[IamOld]

wOW - Hopefully your Trustee will settle now that the "finances" are done! I don't know what the "magic" of payroll deduction is...it goes by snail mail from an employer, and they may or may not be good on mailing these on time...what is in principle wrong with you sending a money order once a month...

Re 401k - are you/will you still be making - you and your spouse - into your respective 401k's?

On a side note, I just got a call from our lawyer's assistant. We're up for confirmation tomorrow pending two items.

1) $300 increase over the payment we've been making - cutting 401k contribution increases taxable income, so effectively we'll have to bring it down to 2-3% of income to make that level out

2) They're insisting on payroll deduction, even though it's not a requirement in our district. I flat out refused. The new payment will be $2250.00 x 60 mos. It's about 30% of our monthly take home income, and I have to budget and save throughout the month to make the payment. We get paid bi-weekly, opposite weeks from each other - I've gotten a handle on which checks I can save the bulk of this from, not whose check - one is lower than the other. It will mess me up if they take it directly!!

[NYHusband]

Yes we can still contribute, but anything over 2-3% is discretionary spending. Just spoke to lawyers office again. They spoke to the trustee's office, and they're insisting on taking the payroll deduction. We don't have a choice or the case will be dismissed. We have to pick one person's checks to have it taken from, and it will be 12 months worth of payment divided by 26 to spread over bi-weekly checks evenly.

This is going to get complicated...

[IamOld]

Yes we can still contribute, but anything over 2-3% is discretionary spending. Just spoke to lawyers office again. They spoke to the trustee's office, and they're insisting on taking the payroll deduction. We don't have a choice or the case will be dismissed. We have to pick one person's checks to have it taken from, and it will be 12 months worth of payment divided by 26 to spread over bi-weekly checks evenly.

This is going to get complicated...

Wow - so in your neck of the woods they allow 2-3% else you essentially eat it...well...if they'd let me do 3% it's not a huge jump to 5%...wow - I still think it's frankly stupid to think that just because an employer sends them a check that's more "secure" thank you doing it yourself...now you don't know exactly when it's sent, etc...I wonder - could you ask for a month more or so to sort of adjust...?

And of course best wishes to you and your family!!!!!

[catleg]

That really sucks. In NJ and some other states, maximum 401k contributions are allowed.
Maybe there is something different about upstate NY?
I would try and stick to your guns on that, it makes a huge difference.