Will we ever need to provide our trustee with our bank statements AFTER confirmation?

[cspa522]

I am fortune enough that our plan is very, very good. We are in 100%, 5-year Ch. 13. Just confirmed in February. Starting paying on it in December of 2010. So a long way to go.

We have a LOT of wiggle room now, and I'm projecting that we're going to have a fairly sizeable savings account at the end of the year. The last thing I want to do is to have the trustee look at our bank account and have our plan redone because we're obviously not paying enough into it to have a lot of savings.

That being said, I'm also not comfortable having $10k in cash sitting around my house, in a safe or not.

Will our trustee request our bank statements at any point? I know that at tax time we need to provide our tax papers.

Just trying to figure out what I can do to keep the savings for emergencies. Since we filed last November we have already had to replace our roof! (Luckily, insurance agreed it needed to be replaced, but that's still $1000 deductible out of our pocket!)

Any advice would be appreciated. I'm in St. Louis (area), Missouri.

Thanks!

[forgotten]

Unless there is some reason to suspect fraud, no one is going to look at your bank statement again. You obviously are not truely contributing 100% of your disposible income to the plan if you can save up $10k in a year.
However, since you are in a 100% payback no one is ever going to give your case a second look as long as your check comes in each month.

[newbie2]

Have you thought about paying more per month and getting out at 36 months instead of 60? And no, the trustee shouldn't request bank statements.

[justbroke]

The Trustee will not want to see your bank statements. The Trustee may, however, by interested in seeing your annual Tax Returns to determine your income. I have never read anywhere that a Chapter 13 Trustee wanted annual bank statements with the only exception being for businesses. If you're operating a business, the Trustee will want more information including financial statements (monthly or quarterly).

[HHM]

Not likely, but, let's be candid for a second, did you disclose that $10K on your petition. If not, you already committed fraud; you can't defuse a bomb that has already gone off.

Putting that issue aside for a moment; increases in savings after confirmation are not usually a problem. Especially if you are already in a 100% plan. Although the trustees "can" request info after confirmation, they rarely do, they are too busy with there existing case load to audit someone after confirmation who has been making payments on the off chance of getting a few extra hundreds of dollars.

[cspa522]

We haven't saved up $10,000 at this point so there's nothing to disclose. A couple thousand at best. But it's possible, if we're frugal, that we will be close to that amount at the end of this year. I don't want to commit fraud or anything else!!

When our attorney told us that our plan was going to be $660 a month I was stunned. I was waiting for it to be closer to $2000. The trustee approved it, and even objected at first saying that he didn't think we'd be able to afford that. I have NO idea why, because as far as I know everything on our petition was correct. The only thing we are not currently paying into is our 2nd mortgage, which we are stripping and haven't paid on in about a year now. The decision on the 2nd's objection will be made on August 2nd.

I thought we just got super lucky, and that if the attorney put this together and the trustee approved it, it was all okay and legit...but am I wrong? Is this going to come back to bite me in the butt? I do NOT want trouble, I just want to get through the next 4+ years and be done with it.

Should I bring this up with my attorney? Is it possible for us to ask to pay more and get out earlier than 60 months? Or will they just raise our monthly payment but keep us at 60 months?

Thanks everyone!

[jeep75]

My understanding is that if you are in a 100% plan you can pay it off as early as you want. I've even read cases on this site of people in a 100% plan refinancing it into their mortgage.

[Pandora]

The only thing we are not currently paying into is our 2nd mortgage, which we are stripping and haven't paid on in about a year now. The decision on the 2nd's objection will be made on August 2nd.

Hold up a sec You do know that you will have to pay something towards the 2nd, right? Stripping it simply means that it goes from secured to unsecured, therefore sharing in the unsecured creditors percentage. If its not approved, then you'll be responsible for it as a secured, or you'll have to settle with them sometime down the road.

So - are you really in a 100% payback to unsecured creditors? Where did you look to find out it's 100%?

[cspa522]

Hold up a sec You do know that you will have to pay something towards the 2nd, right? Stripping it simply means that it goes from secured to unsecured, therefore sharing in the unsecured creditors percentage. If its not approved, then you'll be responsible for it as a secured, or you'll have to settle with them sometime down the road.

So - are you really in a 100% payback to unsecured creditors? Where did you look to find out it's 100%?

Yes, sorry. I know that. They will get something, but it will be moved to unsecured instead of secured. When I type out my answers I don't always convey everything I'm thinking...my bad!

Per the National Data Center for our case: "Percentage To Unsecured Or Unsecured Plan Base: 100%"

That's where I got the 100%. Is that not correct?

This raises another question, though. When August 2nd rolls around and the judge issues a default ruling on our objection from HSBC (our 2nd mortgage, who hasn't responded to anything since they filed the objection), will our payment go up? Or is that already included in the $660 per month we're paying.

[justbroke]

I wouldn't trust the NDC for what your Plan actually is. I always had problems with the numbers! Even though my plan was 0%, they should creditors getting $1/month and some even as much as 2%. When your unsecured 2nd is added, you may not be in a "100%" plan.

[cspa522]

Okay, now I'm Googling percent of payback because I'm obviously not understanding something here. We're paying $36,xxx over 60 months, but that's not anywhere CLOSE to what our debt amounts to.

Check that, I just read the Sticky on this.

I looked at the Voluntary Petition that our attorney submitted and next to Monthly Disposable Income is says "$68.05."

Still not sure how to calculate this exactly, but that's what it says.

[jange]

[QUOTE=cspa522;532505]Okay, now I'm Googling percent of payback because I'm obviously not understanding something here. We're paying $36,xxx over 60 months, but that's not anywhere CLOSE to what our debt amounts to.

Are you paying any secured debt in your payment? My NDC also says 100% to unsecured, but that is because I am paying only unsecured in my payment, my secured is outside of my payment to the trustee. I am not paying 100% of my debt. Big difference.

[cspa522]

[QUOTE=jange;532530]

Okay, now I'm Googling percent of payback because I'm obviously not understanding something here. We're paying $36,xxx over 60 months, but that's not anywhere CLOSE to what our debt amounts to.

Are you paying any secured debt in your payment? My NDC also says 100% to unsecured, but that is because I am paying only unsecured in my payment, my secured is outside of my payment to the trustee. I am not paying 100% of my debt. Big difference.

Okay, then no, I guess I'm NOT on a 100% payback plan. I was confused, thinking it meant something different than what it actually means. Our first mortgage is kept out of the plan and we are paying that on our own. Our credit cards, car payments, and 2 loans went into the plan. One of those is the 2nd mortgage we are stripping.

So NO! We are NOT in 100% payback. But I don't know where to find out what the percentage is! Anyone know? I've looked over all of the paperwork and it never says. Just that we're paying $36,000 over 60 months.

[1dayatatime]

Sounds like too much overthinking going on here. Make your Paymnt to the Trustee and save as much as you can. IMHO, as long as your BK payments are made, there's no issue. We've created about $20K in savings in the past 2 years, attorney knows our status and I expect no issue for the Trustee.

[forgotten]

Sounds like too much overthinking going on here. Make your Paymnt to the Trustee and save as much as you can. IMHO, as long as your BK payments are made, there's no issue. We've created about $20K in savings in the past 2 years, attorney knows our status and I expect no issue for the Trustee.

I needed a new lawyer if everyone else has $833/mo in wiggle room for savings.