motion to dismiss

[michaela]

I have been in a chapter 13 for 15 months. I always run one payment behind with the trustee. I ran one payment behind for one year then got a motion. I paid up and now again i am running one payment behind. I am just wondering when does a trustee decide when to file a motion. Do they pull up your account every 6 months. What do you guys think out there???Thanks

[lrprn]

When a Ch 13 trustee decides that it's time to pull the dismissal trigger depends on the individual trustee and the case circumstances.

What's causing you to run a month behind again after catching up the first time?

[lillymarlene]

I accidentally ran one payment behind my first 6 months. I didn't know until I received a report from my trustee. I immediately sent in the "missing" payment, which probably had held up my plan confirmation.

It probably depends upon your state, but maybe the trustees do check your account every six months.

[michaela]

There is always something that comes up with three children. I believe the first time i needed the money for my daughters college and the second time the car needed repairs that were pretty pricey.

[mountanddo]

I would try to do everything in your power to get caught up on that payment and then stay current. I don't know the specifics of your case but having a chapter 13 dismissed is going to bring you more problems than you have now. You might disagree with me here but you shouldn't be paying college expenses for your daughter in lieu of paying your chapter 13 payment. The car is different as you may need that for transportation to get to work, etc. The 15 months paid in will be lost. I'd hate to see that happen.

[HHM]

the more fundamental question is what is wrong with your circumstances?

Chapter 13's fail for 3 basic reasons
1. poorly crafted plan
2. lack of spending discipline by the debtor
3. unrealistic goals for the chapter 13

I suspect one or combination of the above are going on in your case. Either you house is too expensive, and you tried to save it; maybe the chapter 13 budget is too tight and poorly crafted; but as is in most cases of chapter 13 problems, the debtor probably shouldn't have been a chapter 13 in the first place but was put in one because of unrealistic goals, or the debtor simply lacks the will to change spending habits to make it work.

Based on what you described, the issue seems to be number 2, lack of discipline...as mountando points out, paying daughters college is a no-no. If a category is not on your chapter 13 budget, then you don't spend the money, I highly doubt there is a line item for "daughters college expense", as such, it is not a place to be spending money.

For car repairs, that is actually budgeted and YOU, as the debtor need to have the discipline not to spend that money and save it. For example, if you are budgeted $200 per month in car repairs...everyone knows that you will not actually spend $200 per month, but that is YOUR opportunity to SAVE that money for when you do need it.

The goal of bankruptcy is discharge, whether that is in 7 or 13, you don't want to give that up, for any reason.

[IamOld]

HHM I know you're right - but for whatever it's worth, real life isn't that easy sometimes...if one saves $200/mo for car expenses and gets hit with a $2K car repair bill, and you've saved say 3 months worth, you're screwed.

That's reality.

[HHM]

IamOld, I get that, but you have to start somewhere?

[IamOld]

TRUE...I just get really ticked off at the "system" as a whole (not BK system) just the WHOLE system at times... :-) sorry...

[HHM]

But, chapter 13 does allow for some flexibility, if you really get hit with a LARGE bill, (and my rule of thumb on this is $2K or greater), then getting a temporary forbearance in chapter 13 payments is appropriate.