Letter from Judge, help don't understand

[DUMBAGAIN]

hello! We received a letter today from the BK judge that says:

Now come (name) Chapter 13 Trustee, and requests that the Court enter an Order Modifying Debtor's Chapter 13, pursuant to 11 u.s.c 1329(a) and Fed R bankr. P 3015. Support for this motion is set forth below:

Debtor's Chapter 13 plan was confirmed on Novemeber 09, 2009, and provides for a divident of 80.00% to unsecured creditors. The deadline to file proofs of claims has passed, and based on claims filed, the projected lenght of the Plan fails to meet applicable commitment period of 11 u.s.c. 13252 (b) (4) the Trustee calculates that Debtors' Plan can be modified to pay a divdend of 100.00%, the Plan will meet the applicable commitment period.

wherfore, the Trustee repcfully request that this Court enter an Order modifying the Plan as set forth above.

Then another page says:

The Chapter 13Trustee has filed an objection to your claim in the bankruptcy case.

Your claim may be reduced, modified or elminated. BLAH< BLAH< BLAH,

Review with your attorney, and repsond within 21days of the day of this letter.

What the heck????

[andy158]

I'm no attorney, but it sounds like the claims that did file warrant a 100% payback. Apparently not all of your creditors in your original petition filed claim and therefore you have extra to pay the ones that did. Your plan payment hasn't changed, just the amount issued to your creditors that filed claim has changed.

[DUMBAGAIN]

So it won't add time or lower our payments?

[free2breathe]

Well, definitely the percentage of claims (for those unsecured creditors who have filed claims) looks to be changing to 100%. As far as the rest, the objection, raising or lower payments, etc. I'd give your attorney a call.

[DUMBAGAIN]

Any other ideas??? we calulated the claims last night, if we have to go 5 years which is what's listed on our 13 network as the applicable comment period, we would reduce our payments by about 400-500 a month, otherwise we would pay them off way sooner than 60 months....

[momofthree]

Sounds like your plan will be ending sooner than anticipated! Congrats!

[lrprn]

It sounds like because some of your creditors didn't file claims, your trustee wants to increase your plan payback to 100% and then also extend your plan payments out to 60 months. Depending on how that works out in your unique financial situation, it *might* lower your monthly payments.

You really need to talk to your lawyer. He/she knows the specifics in your case and can explain things to you reliably and accurately.

We're just a well-meaning, pretty knowledgeable, earnest group of bk filers and former filers hanging out here in the forums. But 99.9% of us are not lawyers, and the few that are lawyers aren't representing you. That's why you paid your lawyer - to provide you with answers when letters like this arrive.

Give your lawyer a call, send an email, or set up an office appointment for talking this over face-to-face. Good luck!

[DUMBAGAIN]

Actually, I did have a call into my lawyer as soon as I got the letter, just thought one of you old timers might have had an idea while I was waiting to hear back.

We are going to now payback 100%, however it will still not take us 5years, because we don't have enough debt

Thanks, Dumb