This seems unfair!

[Kingxray]

Hi all,

We just began the 2nd yr. of Chapter 13. On our original B22 the trustee would not allow my car as a transportation deduction (no car payments and hubby has a company car). She would only give us the public transportation deduction ($80 less). Ha,that's a joke. We live in a rural area with no public transportation.

My car is 12 yrs. old. I asked the lawyer about buying another car. Lawyer said trustee would okay it, but would not give us back the transportation deduction or the transportation ownership deduction.

So in other words, we can't get any money back out of the plan if we incur a necessary expense but if we have an increase in our income (for whatever reason) we are expected to pay more into the plan. That seems unfair to me. Can anyone explain it to me?

So there is no reason for me to get a job. If my car craps out, I can't get to work and what ever money I could make to buy a car the trustee would take anyway! Good going BK courts. That helps Americans get back to work! Really ticks me off!

[karm43]

I don't blame you. Do you work now?

[lrprn]

My car is 12 yrs. old. I asked the lawyer about buying another car. Lawyer said trustee would okay it, but would not give us back the transportation deduction or the transportation ownership deduction.

I fail to see why your lawyer told you that if you bought a new (to you) car with your trustee's permission, your trustee would then refuse to allow the transportation and car ownership costs associated with the car.

All your lawyer has to do is modify your plan to include the new car payment plus the legitimate auto exemptions to support the car. If the trustee squawks, your lawyer can take it to your local bk court judge for a final decision which could well be in your favor.

Could it be your lawyer is reluctant to go head-to-head against your trustee? Or is it possible that you may have misunderstood what your lawyer told you?

[Kingxray]

I fail to see why your lawyer told you that if you bought a new (to you) car with your trustee's permission, your trustee would then refuse to allow the transportation and car ownership costs associated with the car.

All your lawyer has to do is modify your plan to include the new car payment plus the legitimate auto exemptions to support the car. If the trustee squawks, your lawyer can take it to your local bk court judge for a final decision which could well be in your favor.

Could it be your lawyer is reluctant to go head-to-head against your trustee? Or is it possible that you may have misunderstood what your lawyer told you?

I believe our lawyer is reluctant to go head-to-head against the trustee. I asked him specifically about the 2 deductions/exemptions and he said, "No one has asked me that before but I could amend the plan and try it". I asked him if the trustee would allow the expemptions and he said, "She'll probably fight it" And that was the end of the conversation. We were going to use those funds as our car payment, so now I'm stuck with my old car for another 4 yrs.

We have a bad history with our trustee. We had several 341's and our case dismissed due to our lawyer's failure to provide correct/timely paperwork. We refiled and had several hearings (which we did not attend) over payroll/income taxes and finally this deduction on the only car we were trying to claim. We paid $400/mo for over 6 months and after several amended plans (which we did not see) our lawyer must have caved because all of a sudden we got a notice in the mail that our plan had been confirmed for $1500/mo. Ouch! The trustee may have been overly crictical because my dad is one of the creditors and his lawyer was giving us a hard time as well. I don't think our lawyer wants to "rock the boat" and doesn't want the trustee to look at our case any further because of the possiblity of a negative outcome.

Either way, I don't think my car will make it another 4 years. We have enough money to live for 1 more year and then I don't know what will happen. Thanks for seeing my side of things lrprn. I thought I was going crazy!

[LadyInTheRed]

The fact that the trustee will probably fight it is not a reason to avoid petitioning for a modification of your plan. As lrprn says, it's the judge who makes the final decision. Yes, a petition for modification may bring all of the prior issues back up. The question is how strong your argument is on the controversial issues. Your attorney should review your current income and expenses (including your need for a car, your payroll deductions and whether you will receive a tax refund), reassess your situation and sit down with you and explain why he does or does not recommend petitioning for a mofidication of your plan.

I am concerned about your attorney. He should not have agreed to a modified plan without input from you. In fact, I believe your signature would have been required on a modification. If so, he made an electronic filing certifying that he had your original signature on hard copies of the filed documents. Make clear to him that you expect him to communicate with you about everything that happens in your case and consult with you about all decisions to be made and that he should not file anything with the court that you have not reviewed. These are things an attorney should do automatically. But, assuming you are giving an accurate account of past events, it sounds like your attorney needs some reminding.

[Kingxray]

Thanks "Lady". I am also afraid to go up against the trustee becasuse of past events, which are factual. My husband says he's done with the whole thing. Our BK took over 2 years to resolve, starting with trying to file Chapter 7, my dad's lawyer, yada yada. I just don't think anyone wants to, as I said, "rock the boat".

Yes, my lawyer's office files those forms electronically and he did have our original signature. I did see some of the amended plans just not the final one, the biggie. I found out through the confirmation letter, then I went on Pacer and printed out the plan. Yeah, I was really ticked off about that.

Maybe it's just better to fly under the radar and see what next year brings. I think hubby and I are running out of the fight in us.