Payment Changes

[4theboys]

I am relieved and pleased with our monthly payment amount that our lawyer projected. How common Is it for that amount to change? I am okay with a minor change, but I am worried about a huge change. Has that happened to anyone? He even said that he doesn't foresee any changes with our case, it is pretty simple and straight forward, just interested in other people's experiences, Thanks!!!


FYI.. Filed 9/14, first payment due 10/14, 341 Meeting beginning to mid November (haven't received actual date yet).

[lrprn]

In this case your lawyer knows your situation well, so you should trust his/her opinion that you are unlikely to see any change in your proposed plan payments and will be confirmed without an issue.

However, you asked if it does happen that the proposed plan payment changes after filing. Yes, it is possible and it does happen (it happened to us). Whether it happens or not depends on your plan's structure and your trustee's opinion about whether your plan reflects your actual financial situation accurately and if your plan conforms to the local court's standards and practices for Ch 13 plans. If your lawyer thinks you'll be ok, chances are very good that you will be ok.

[jrs]

irprn,
You have experence. Can you awnser my questions?

In regards to payment changes, we had our chapt13 confirmed 2/14 at $1375/mo for 60 months. Last week we recieved a letter from the trustee saying that starting on 11/24, payment will increse to $3900 due to not paying mtg payment. We spent countless hrs trying for loan mod with Wells with no luck. Atty said to surrender house due to it being worth less than half of what I owe. We found a better house for about the same money $2395 (min mtg payment was $2450 and thats paying no interest). We have been living in a new house for three months now. It's a lease option. I contacted my atty and they say it will cost $850 to modify my plan to include new lease payments. Does anyone know if this is normal? It just seems a bit excessive to change my plan down $50 dollars.

Also, please excuse dumb questions and such, this is my first real post.

Should I contact trustee and ask if we could work something out ourselves due to the min $ involved?
Being in this for going on 8 months now, we just dont have $850 laying around, moving expenses, utilities, atty fees and the like. The atty says this charge cannot be include in the plan. Does this mean every time somethig changes, paycuts, loss of hrs at work, taxes and the like, we will be required to pay the $850??

[jrs]

I really dont know what im doing. I have never been on forums before.

[newbie2]

Jrs, it is normal for an attorney to charge to modify your plan. (You are asking for the plan to be modified, with your new house - lease payment being reflected instead of your old mortgage payment.) Either way the money has to be spent, whether it is by paying your attorney his fee, or paying the trustee the new increased payment in November.

Often times the attorney fee can be included in your plan, but your plan may be set up in a way in which there is no extra at all to go towards the added attorney fees. And no, the trustee will not talk to you about this. The trustees office will refer you back to your attorney for advice if you call there. The only way around this is to fire your attorney and file the modification yourself, which is no small matter.

Good luck to you. Please let us know how it works out for you.

[LadyInTheRed]

I really dont know what im doing. I have never been on forums before.

Hi, jrs. Welcome to the board. I edited your first post to make it easier to read. It read like one very long text message. You will get more responses to your questions if you use complete sentances, end sentances with periods instead of commas and put spaces between sentances.

ETA: Newbie2 is correct that it is normal for your attorney to charge additional fees for a plan modification. The modification may only result in a $50 change in your payment, but it requires the filing of an amended plan to show you are surrendering your house. Your new payment amount needs to be supported by a new budget. It's not as simple as telling the trustee that the lease payment is $50 less than the mortgage payment was, so the plan will increase in the same amount.