went over my documents last week w/ my lawyer in preparation for filing chapter 13. I'm curious: once we file, and the 341 meeting happens, will I (and my wife) be the one(s) speaking to the trustee or will we be represented by our attorney? Will the trustee be looking through bank records, credit card statements... essentially all of the paperwork I submitted to my attorney, or will he/she only be reviewing the documents my attorney completed?
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Your attorney will be there, but you will have to answer the questions. The attorney is really only there to hold your hand, the purpose of the meeting is for the trustee and any creditor who desires to ask you, the debtor, questions.
The meeting is not very detailed, and takes less than 5 minutes, they ask some basic questions about your petition. After the 341 meeting, in a chapter 13, is when the real fun begins, you can expect to receive an objection from the chapter 13 trustee either at the 341 meeting, or within 10 days. That is when your lawyer does the negotiation of your chapter 13 plan. But the 341 meeting is more of a formality. -
oh, so the 341 is just a formality? and it's AFTER the 341 meeting that our attorney negotiates? I thought all was said and settled AT the 341 meeting and from then on for the next 5 years we'd know what our monthly payments is going to be etc. That's not the case, I see...Comment
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Do most trustee object to chapter 13's? The reason I ask is because my DMI is very low at $100. The papers state that only $327 out of 20,000 will be paid back to unsecured creditors? What chance is there that my payment won't go up?Originally posted by HHM View PostFiled 11/17/11 Chapter 13, 341 meeting 12/21/11. Plan confirmed 1/19/12 - DISCHARGED 12/16/15
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There are only a handful of districts of which I am aware that do the 341 meeting and confirmation all at once. Generally, confirmation of your chapter 13 plan can take anywhere from 1-6 months after the 341 meeting.Comment
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so then,
we file,
wait for objections for about 10 days
then wait for 1-6 months for confirmation to actually start the plan ?Comment
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No.
You will start making payments within 30 days from the date you file based on the plan you and your attorney propose.
About 30 days after filing you will have your 341 meeting. You might get an objection at the meeting (rare), but usually within 10 days.
Then from there, depending on the nature of the objection, the confirmation process takes place, and that could take 1-6 months.
[meanwhile, you are making the monthly payment you originally proposed]
Once your attorney and the trustee hash out any objections, then the FINAL plan is confirmed. Once that plan is confirmed, then you will start making what ever payment was agreed on as part of that negotiation (note, your attorney will (should) keep you in the loop).
So, for example, if you propose $200 per month, that is the amount you START paying once the bankruptcy is filed. But let's say the trustee objects to some of your expenses, so as part of that negotiation, you and your attorney agree to $300 per month, the trustee withdraws the objection and the court confirms you plan. That process could take 1-6 months depending on the issues.Last edited by HHM; 11-06-2011, 06:45 AM.Comment
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Understood. Thank you very much. Do you happen to know if student loan repayments are supposed to be suspended during the time period, i.e. the 5 year chapter 13 repayment term?Comment
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It's probably different in other states, but the trustee asked me very basic questions, to which I mostly answered: Yes or No. My attorney added to most of my answers. My lawyer also brought a large pile of my documents to the meeting, which were never referenced.Originally posted by RLOPE View Post
Though I didn't receive my Confirmation Order until 6 months later, at the conclusion of the meeting, I believe the trustee said that she would recommend my plan for confirmation. I was told shortly before I filed, what my payments would be, and that never changed.Comment
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is that the extent of your interaction with the trustee? Are you to submit copies of taxes every year?Comment
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Yeah, that has been it, so far so good. Though I've been told that items like tax returns can be requested at any time.Comment
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RLOPE,
lillymarline's experience is very common, you will have very little interaction with the trustee.
As for student loan payments, yes, they go into automatic deferment. However, if you can make some sort of payment toward your student loans during the plan, you should.Comment
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I thought I had read in a previous post somewhere *I can't find it now* that you should NOT pay student loans that are deferred during Chapter 13 as that would show that you have additional DMI which should be going to your creditors.Originally posted by HHM View PostFiled 11/17/11 Chapter 13, 341 meeting 12/21/11. Plan confirmed 1/19/12 - DISCHARGED 12/16/15 Comment
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You don't tell anyone you are doing so.
Once the plan is confirmed, there is very little if any monitoring. It is common practice (or should be) that attorneys pad your budget elsewhere to allow you to pay at least interest to the student loans, plus, you, as the debtor, need to have spending discipline, (e.g. if your budgeted $800 for food, no one says you MUST spend $800, spend $600 and pocket the difference and apply toward student loans or an emergency fund). Some districts, so long as the unsecured creditors are getting the the amount showed on the chapter 13 means test, allow you to budget on schedule J and pay student loans, or a portion thereof, outside the plan.Comment
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HHM,
Great insight. I appreciate your guidance on this sight. - thanks again.Comment
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