Objection to confirmation of Chapter 13 plan.. HELP !!!

[mikewindy]

I need some help trying to firgure this letter i got in mail.
The letter say I failed to devote all income to the chapter 13 plan as is evidenced by my schedules and budget. creditor desires a modification to the plan which mandates all disposable income to be paid into the plan.
Says they want me to pay administrative fees , lawyer fees incurred in connection with filing proceeding.
Also says the debtor must recognize creditors securtiy and pay 100% of the valve of the collateral over a reasonable period of time with reasonable rate.
And creditor objects to any claimed exemption as to it collateral.
Also debtor must revise the budget and schedule and pay all of the disposal income into the plan.
and not but least creditor prays the confirmation be denied.
Ok someone anyone what does all this mean. I have a 341 meeting next monday I already stressed about that will the creitor be there? And what is this letter saying I am not telling the truth about my income? Are they trying to get my chapter 13 plan dismissed. I am so confused..Please help.

[newbie2]

Take a deep breath, and then try to relax. They are not trying to get your filing dismissed. Objections to confirmation are normal. Often they come from the trustee, other times from a creditor. It looks like the creditor is objecting to 2 things: 1) That your disposable income and the amount of the payment aren't matching (hence the reference to "all disposable income" and budgeted items) and 2) that their claim is secured by collateral and they want to make sure it is treated as a secured claim, paid in full during your plan.

Pick up the phone and call your attorney this morning and go over things. It would also be wise to review your schedules before you call, to familiarize yourself with the expenses you have listed.

[momofthree]

^^^Ditto what newbie said.

"debtor must revise the budget and schedule and pay all of the disposal income into the plan."

This sounds like they're objecting to your expenses listed on your schedule J. They think you should adjust your expenses, thereby creating more DMI to be paid into the plan.

Are you filing pro-se? If not, then your attorney will be able to explain the specifics to you and will know how to respond.

[IamOld]

Also if I may add to the excellent advice above - if this creditor is trying to be considered to be SECURED, which means they want 100% repayment. IF that doesn't upset the apple cart, and increase your payment beyond something you cannot handle, that would likely make them go away...that's what I think they want...BUT talk to your lawyer asap! He/she may tell you, heck no, and fight back!

[mikewindy]

Thanks for all the advice. I am still stressing but no as much now. I am still waiting for my lawyer to call me back. I believe that this loan place just want more money so they will up my payments monthly. Also i looked at the disposal income and it says in one place 1113.00 but in another it says 1253.00 so i dont know if this is what the conflict might be. We will see when lawyer calls back.

[catleg]

What do they claim is the secured collateral?

[mikewindy]

tvs, lawnmower, generators ,weede eating household ideas.

[frogger]

tvs, lawnmower, generators ,weede eating household ideas.

I see this kind of "collateral" listed as "secured" a lot. 99% of the time, the secured claim gets kicked down to unsecured.

If all of these treasures are so valuable, let them come and get them.

[mikewindy]

Lawyer still not called back. Left 3 messages. I was reading something on here about odjection by creditors and it said i believe that they are trying to say i commit fraud. Is this what they are trying to say?

[mikewindy]

but mine was objection to chapter 13 plan i am so confused..It also say i didnt devote all my income what does this mean?

[HHM]

Who is the creditor in relation to you...your mortgage lender, car lender, etc.

It sounds like a secured creditor is taking issue to their treatment (or lack thereof) in your chapter 13 plan. Since it is a creditors filing, could be a larger issue than the run of the mill trustee objections. That doesn't mean the creditor objection is somehow worse, just that the problem is a bit more fundamental, that's all.

Without more context, who can say.

I understand your worried, but NOTHING is going to happen in the short run. Your attorney will probably handle it, so stop freaking out. I would only start to worry if your attorney doesn't get back to you before Thursday.

[mikewindy]

its a personal loan. have you ever heard of creditor objection like this ? You say treatment meaning they are not getting the kind of payback they think they should or something else? And please give a example if you can about larger issue..

[mikewindy]

ok lawyer called me back this certain loan place sends everyone that files chapter 13 with them the same paperwork just change the name on top and the amount owed. I was told all they want is more money and that we will up there payment alittle to make them happy. Lawyer said not to stress one bit about this and I asked her would these people be at my 341 hearing she said no they have never showed up at anyones meeting.

[HHM]

By personal loan, do you mean a loan from a friend or relative, or a signature loan from a bank or payday loan?

Based on what you posted, this creditor is claiming they are a secured creditor, but it sounds like you disagree or did not inform your attorney that the creditors is secured. So your attorney probably just lumped the creditor in with the rest of your unsecured creditors. So this creditors is trying to up their status, so to speak, so they can get paid more. Also, it sounds like there are other issues the creditor is raising (not all disposible income in plan etc), which could be boilerplate or more fundamental (especially if the creditor is a friend or relative with more information).

This situation goes 1 of 3 ways, (1) you agree with the creditor and amend the petition accordingly, (2) you settle with creditor on some compromise you both can live with (note this is done inside the context of the chapter 13, any compromise relates to how the creditors is treated in the plan, it is NOT a side agreement outside the plan), (3) or you both go before the judge and have the judge decide who is right.

[mikewindy]

here i will just copy the paperwork for you. It was a signature loan where you put up collateral such as houssehold item and lawn equitments and thing of that nature .And thanks for all your help.
Objection to confirmation of chapter 13 plan
Creditor objects to the plan for the following reasons:
1)
A) The debtor provides in the plan that the creditor is partially secured as to both claims, and plans to pay only a portion of the entire debts.
B) creditor has 2 secured debts.
C) The debtor fails to devote all income to the chapter 13 plan as evidenced by debtors schedule and budget;therefore, creditor desires a modification to the plan which mandates all disposable income to be paid into plan.
2)
The security of creditors is worth more than provided for in debtors plan. The balance owed to creditor as to claim no. 1 x amount of money, inclusive of attnorney fees and the interested should be reasonable.The balance owed to creditor as to claim no. 2 x amount of money, inclusive of attnorney fees and the interested should be reasonable.
3) creditor should be paid concurrently with any administrative fees.
4) Creditor prays the debtor pay reasonable attnorneys fees incurred in connectin with filing this proceeding.
5) The debtor must recognize creditors security and plan to pay 100% of the valve of the collateral over a reasonable period of time with a reasonable rate.
6) Creditor objects to any claimed exemption as to its collateral.
7) The debto must revise the budget and schedules and pay all of the disposable income into the plan.
8) Creditor prays the confirmation be denied.

That is the whole letter now can you get heads from tails of this. Thanks so much