Question on Confirmation

[mountanddo]

This question is coming from something said in another thread and has me a bit worried. As I understand it most of the work done in a Chapter 13 is done after the 341 meeting and before confirmation.

When my attorney and I met we discussed my expenses and what my monthly payment would be. She said that she would be able to get my payment at $100 which the paperwork she sent me to sign reflects that.

The problem is that I really had to low ball a few expenses and totally exclude others because if I didn't I wouldn't even qualify for a Chapter 13.

For example, I excluded healthcare expenses totally as I haven't gone to the doctor in 2 years because I can't afford it. So we put zero in as expenses.

Also, we put down a really low number on car maintenance, groceries and household needs.

My question is will the trustee see this and possibly NOT confirm my plan? Then what happens? Is the whole thing totally dismissed? The other option is for the CC companies to garnish my wages at 25% which is over $500 a month.

My attorney fees (less the filing fee) is going to be included in the plan. If the trustee does not confirm my plan do I still owe the attorney the $2500 she quoted me for the Chapter 13?

Not once did the attorney ever say to me that the trustee has to approve the plan or give an indication that there might be a possibility they wouldn't.

I guess I didn't realize exactly what "confirmation" meant. I thought once you filed you were ok. Of course now reading all the posts knowing this information they all make more sense.

[justbroke]

My question is will the trustee see this and possibly NOT confirm my plan? Then what happens? Is the whole thing totally dismissed? The other option is for the CC companies to garnish my wages at 25% which is over $500 a month.

I don't think the Trustee would complain when you are contributing something to unsecured creditors! In my District, we can actually submit 0% plans. More on this later.

My attorney fees (less the filing fee) is going to be included in the plan. If the trustee does not confirm my plan do I still owe the attorney the $2500 she quoted me for the Chapter 13?

You would owe whatever the Attorney has "earned".

I guess I didn't realize exactly what "confirmation" meant. I thought once you filed you were ok. Of course now reading all the posts knowing this information they all make more sense.

For a Chapter 7, that's generally the case. However, a Chapter 13 is actually approved by the court when one submits a Chapter 13 Plan of Reorganization. The plan must be approved (confirmed). It must pay certain parties over the life of the plan and state what unsecured creditors might expect. It's not really that the Trustee approves it. It must be approved by the court and that could actually be done over a Trustee objection to confirming the plan. However, most attorneys don't cause trouble between the Trustee and Debtor and will generally follow any guidance the Trustee suggests or provide the Trustee with enough reasons that the Trustee shouldn't object to the confirmation of the plan.

Now, as for reducing your expenses to file a plan with "some" payment... I say that is just setting yourself up for failure. I do realize that in some Districts, they require that you pay something into the Plan (e.g. no 0% plans). Personally, I find this troubling because most people in bankruptcy have already reduced their expenses down to the bare bones.

I hope that your plan is a "feasible" one that won't just set you up for failure later. You should actually be able to SAVE a little money during a Chapter 13. Just my observations and opinion.

[mountanddo]

I hope that your plan is a "feasible" one that won't just set you up for failure later. You should actually be able to SAVE a little money during a Chapter 13. Just my observations and opinion.

The other option is being garnished for $500 a month so I think that $100 is a much better option. If I have to sell my blood to get the payment, I will.

[justbroke]

The other option is being garnished for $500 a month so I think that $100 is a much better option. If I have to sell my blood to get the payment, I will.

And that is what I call "buying" confirmation. Sometimes it is worth it. Especially since you'll probably pay a very small percentage back to unsecured creditors, and all interest stops!