Change in expenses.

[spidge]

I had a 401K loan that I paid off after 7 months in my Ch13 plan and I was wondering if the trustee had to be notified?
I made it clear when it was to be paid off and my attorney said don't worry, if it is worth it for them they will ask for a change. We were a few hundred dollars upside down in our 13 so there needed to be $700 of available funds before the schedules showed us as able to complete a 13 on our own. Our payment is comprised of attorney fees, mortgage arrears, and taxes, nothing else. So the way I see it we no longer have a $490 per month 401K payment leaving the trustee to wait for $210 more of disposable income before it is worth increasing our payment. The payment was averaged for the entire year because my wife does not get paid for two months in the summer.

[spidge]

wow!!!

[lrprn]

Spidge, I'm assuming your "wow!!" is about gettting no replies to your question for many hours. I'm late to the game, but here goes.....

When you pay off debts like a 401K loan during an active 13, let your lawyer know and ask him/her what to do. Some trustees won't care, others will. Your lawyer should know where your trustee falls on the "notify me about paid-off 401K loans" bell curve. Good luck!

[mountanddo]

wow!!!

Unfortunately, the more knowledgeable forum posters don't stalk this forum as much as I do or you probably would of gotten a response sooner. Patience is a virtue and not everyone comes here to post everyday.

[spidge]

Thanks for the responses. The "wow" was two days later by the way.

I did ask my attorney bout the 401K loan payment, before and immediately after the 341, and she replied that its in the paperwork and since we were upside down so to speak they will likely not ask for an increase. The loan matured 6 months after the 341 so like my wife's on and off type job it was likely averaged.
Shoot, as old as my cars are I could likely curb the urge with a car loan anyway.