Chapter 13 Mod? Birth of child

[BK09]

Prior to birth of child in December 2011 we filed Chapter 13 in Early 2009. Our plan payment is at $300/month. Our income has remained the same since confirmation but with the new baby our total expenses have increased approximately $500/month due to childcare. I have contacted our attorney and she will be filing a motion to amend the plan payment.

Any idea what to expect from the trustee? Expenditures and income are basically the same since plan was confirmed.

Thanks
BK09

[Redsox]

The Trustee will accept the new Plan. If not, there are multiple precedents(sp?) for which Trustees have accepted the birth of a child as a new expense. If not, then have your lawyer schedule a hearing with your judge. Either way it will get approved. We have a similar situation in which the trustee was giving us flak about having a baby. But we quoted a case that she allowed the deduction and she had no choice.

[Pandora]

While it is true that you can adjust your plan for the addition of a new member (congratulations to you ) the only thing I see that may come into play is what is your plan payment going towards; secured or unsecured? If secured only, it may be an issue due to not having the wiggle room.

If you're expecting your payment to go from $300 to basically nothing due to adding the newest member - I'd say it will be hard to do w/out some mention of conversion to a Ch. 7. Are you looking at it as going "dollar for dollar" and that you'll be in the red -$200 ($500 added expense - $300 CH.13 / DMI) or can you actually pull from other areas to get that $500? You're above median, so that means in most instances, you are only allowed IRS standards for many areas.

[BK09]

Pandora-

It's all unsecured that is left (attirney fees & IRS have been paid in full) and 20 months left in plan. I'm wondering if I should just let it be, not modify plan and keep rolling. Things are tight but I would rather not draw any unwanted attention my way.

I have looked at converting to chap. 7 option......is this the wrong way to go if advised by attorney?

[BK09]

Thx redsox

[Pandora]

I'd still try to get it modified if you can (and still can afford the payment) - never hurts to ask, and babies are expensive.

As to conversion, that's a call that only you can decide since you know your situation best, but its something I'd definitely play "what if" with my attorney before committing to anything. What's the "magic number" in your area as a minimum CH. 13 payment? Here (VA) its something around $125 DMI from what I recall when we first met with our lawyer, but again, YMMV.

[BK09]

Not sure of minimum payment but I will find out. After doing some research on a conversion, I'm going see the chapter 13 through. With only 20 months left we can do it.

I'll post information on the modification after the dust has settled.......Thanks for the help!

[keepsmiling]

If expenditures are the same, that must mean either you are getting diapers and pediatricain bills (at a minimum) for FREE, or have given up a minimal standard of living.
Go for the mod, you are entitled to it!

[Pandora]

Conversion isnt that bad - unless you're trying to strip a 2nd lien off the house.

As keepsmiling points out - you're entitled to a modification due to the added expense of the baby. It doesnt hurt to sit down with your attorney and go through the numbers.

[IHateChase]

20 mos x min 500/mo= not chump change