Confused about dates (the process)

[sophieanne]

Good morning everyone and I hope you're having a beautiful summer day.

Ive filed a Chapter 13 with an attorney- 100% payback to unsecured creditors (major dollars) and paying off a car (was told this had to be part of the plan - couldn't do it on our own). We are paying our mortgage outside the plan. This is a 5 year plan.

Anyhow can someone explain the timeline to me (I'm a little confused).

Our 341 meeting is August 23rd..
The confirmation hearing is September 26th...
Is the plan confirmed after the 26th or is there another waiting period for objections??? That's what confuses me, i read that there is 30 days after the 341 for objections. I thought that was the purpose of the 341 meeting. When I watch the process it looks like forever till the credtors start getting paid even though I'm aready making monthly payments.

Also - just curious, to anyone in a 100% payment plan - did all your creditors file a claim??

Thanks for any info people can provide; this is a fantastic, helpful site.

[kornellred]

If you have disposable income in sufficient quantity to fund a Chapter 13 payment plan that pays back 100 percent of the unsecured creditors you listed in your petition (and you probably listed them all), chances are that the trustee will find no basis for an objection. Whether or not any unsecured creditors file a claim or not is irrelevant. Further, if you are paying in full, the creditor would be wasting time filing an objection, because nothing further could be gained than having the entire balance due paid in full. They lose accumulating interest because the amount is frozen upon filing, but that is a universal fact that cannot be circumvented.

It is rather a rare case where an unsecured creditor does not file a claim. It does happen, but not often.

[sophieanne]

Thank you for your response; I appreciate it.

Just curious why you wrote whether unsecured creditors filing a claim or not is irrelevant. I understand that in the case of secured creditors but not unsecured ones. My lawyer told me unsecured creditors must make a claim or they will not be paid; so I should hope that they all don't.

Thanks again....where are you in your case?

[kornellred]

sophieanne - your lawyer is right. Any unsecured creditor must file a claim, or they will not be paid. But that makes it irrelevant from the standpoint of your own plan, because your payment will cover the entire amount of your unsecured indebtedness. If an unsecured creditor does not file a claim, no money will be paid to them. You will be that much further ahead if that happens. You will be finished with your plan payments ahead of your confirmed duration. That's the reason why I said that it's irrelevant whether a claim is filed or not.

I have one month to go on my 54-month Chapter 13 plan. All of my unsecured creditors definitely filed a claim, but they won't be getting anywhere near the amount that was owed. They will have received approximately 25% each, overall. The trustee is doling out the money in my plan base proportionately.

[sophieanne]

Hi again kornellred,

Thank you again for clarifying your comment to me...now it has sunk in

Wow..1 month to go...i am so happy for you. Congratulations to you; I'm sure you're close to celebrating.

Thanks for sharing your knowledge and experience with newbies like me, it really helps when someone can help with the things that aren't quite*clear. I hate phoning the attorney, feel like i'm out of line for trying to clarifying something.

Anyhow, happy countdown!!!!

[kornellred]

One thing I have found is that I really don't know that much about Chapter 13 bankruptcy after all. When you are a no-asset case with all unsecured credit like me, you just pay your payments every month and hope that nothing much goes wrong. My trustee has not required the submission of tax returns in my case, my plan payments are low, my children are long since grown up and I have no responsibilities except to myself, now that I am retired. That makes for a laughably easy Chapter 13. Not so for many folks - I read some frightening posts about Chapter 13 debtors who are barely scraping by and my heart goes out to them. I think the debtors who are having an easy time of it pretty much keep their mouths shut about it. I have been extraordinarily lucky.

[SMinGA2]

In most states the 60 payments counts from when you file. You generally make your first payment within 30 days of filing, and one every month after. Some unsecured may not file claims - and if you're in a 100% plan that could mean you end up finishing sooner/paying less overall.

The confirmation hearing is often only attended by the attorney (yours will let you know if you need to attend). And if you've proposed a 100% payback to unsecured, the trustee will probably not quibble with the expenses/DMI listed in your plan.

Objections most commonly would be situations where a creditor wanted to rule a debt non-dischargeable, such as if you'd taken a $5k cash advance 2 months before filing. Or had large luxury type purchases recently. I could be wrong, but I don't think creditors are able to object to your expenses/DMI calculation.

[sophieanne]

Hi Staci,

Thank you for your response. That helps relieve my mind some. No large cash advances or luxury type purchases in the last year so that should be a good thing. It is a 100% payback plan to the unsecured creditors so I'm hoping it's goes smoothly. My 341 is next Thursday so I'll be writing after that.

I hope you are doing well in the plan you are in.