Just filed today...anyone with Eastern District of Missouri? Question about change?

[electricdoc]

So we got into trouble paying our mortgage (and other debt too) when I had a high risk pregnancy. Citimortgage claimed they wanted to help us and we applied for a loan modification. Well, that didn't happen and they started the foreclosure process. We had a sell date of tomorrow which now has been stopped since we filed today.

So some questions if anyone has experience with the Eastern District....the original plan proposed 3 years. 0% payback on unsecured (which surprised us) and we have very little DMI since I am not working right now. I know things are set until confirmation and it will probably change. How "strict" or "in your life" is the trustees for this district?

So what happens when I get a job? When does confirmation usually take place? I may be starting my job at the very end of October to mid-November. Our income will dramatically increase (like at least 4,000 a month minus childcare for me to work) so will the trustee want to take all my income and put it towards our creditors?

I mean, our monthy trustee payment right now is proposed for $1600 for 3 years. Once I get my job will it go up to over 4,000-5000? I keep reading that some trustees want to put every single cent of your DMI to the creditors. I would love to keep the majority of my income for savings. Can we opt to do 100% pay back with unsecured to be able to keep more of my income?

Since this was a emergency filing to save our house we really haven't been able to ask many questions yet. Thanks.

[kornellred]

I am not from Missouri, but I can tell you that you will be required to modify any confirmed Chapter 13 plan after you return to work, if you are going to be earning an extra $4000 per month. It should probably be noted in the confirmation document if you have been honest with your attorney.
Apparently, from what you have explained, the plan payment consists largely of secured mortgage debt with nothing going to unsecured creditors. In a Chapter 13, secured and priority debts are paid first, with the balance going toward paying unsecured debt. Once you return to work, you will essentially re-do the schedules to determine your actual disposable monthly income, which will then become your modified payment. You do not have any options with respect to the way in which the trustee distributes the money in your plan base. With such a big increase in income, it is almost certain that your unsecured creditors will get some of it. But don't forget - your living expenses will also dramatically rise when you go back to work, and that will subtract from your disposable monthly income.

[electricdoc]

thanks...I hate that our filing was an emergency because we really didn't get to ask many questions yet. We plan on meeting with her again and going over everything.

[stevem3827]

Ok, I'm confused here. We haven't filed yet but I don't understand how someone could have a 0% payback to unsecured. If there is nothing left to pay unsecured, why not a chapter 7, unless they can't file a 7? Sorry, but I am missing something here. Also, do all 13's include the secured debt as well in the payment to the trustee or is it an option or condition of the filing, depending on the status of the secured debts?

[keepsmiling]

Sometimes a 13 is necessary to save a home.
Lots of people are in 0 or very low percent payback. Whether that is allowed or not depends on district.
Go back and read OP's posts for a clearer understanding of her situation.

[keepsmiling]

OP, you may have had to go on a very strict budget to show enough DMI to fund your plan.
When the job happens (good luck btw!) you will redo your budget to reflect a more realistic lifestyle. Perhaps there will be some room for padding for savings at that point.

[TheBajan]

Ok, I'm confused here. We haven't filed yet but I don't understand how someone could have a 0% payback to unsecured. If there is nothing left to pay unsecured, why not a chapter 7, unless they can't file a 7? Sorry, but I am missing something here. Also, do all 13's include the secured debt as well in the payment to the trustee or is it an option or condition of the filing, depending on the status of the secured debts?

Steven,

We actually met the means test and could have gone with a chapter seven. As keepsmiling pointed out, it's sometimes beneficial to choose a 13 in order to save your home, protect assest, or do a lien strip of a second mortgage. In our case, we were doing a lien strip and protecting a rental property. We were required to pay in a minimum amount to the plan as we were "buying back" the non-exempt equity in a vehicle. All of our debt is unsecured credit except for our mortgage and the second that we are stripping. So you would assume that the payments will go to unsecured. Before that happens, the lawyer, and the trustee, both get their cut. According to my calculations, there won't be enough paid in to even cover those two "priority" items unless I have to make a lump sum payment at the end or unless my tax returns are high enough to pay into the plan with them. Our atty exempted the first $3600 to let us have enough DMI to pay into the plan so anything over that, the trustee gets to keep.

Hopefully that makes sense to you. There isn't a required percentage of payback to unsecured. Only what your DMI will let you pay.

Best wishes,
The Bajan

[electricdoc]

thanks everyone...we wouldn't have filed chapter 13 if it had not been for the foreclosure. I was out of work since feb. and we just couldn't keep up. Once I get a job we are actually pretty comfortable with paying our bills. We just had to save the house. That's why I am so irritated that Citimortgage wouldn't try to work with us until I got a job...we offered to pay them 1000 down, then 1000 a month until tax time in which we would pay back the entire arrears and legal fees that we owe them in addition to paying our mortgage every month. But they wouldn't even consider it. So we filed the 13 to save our home. Even our BK attorney tried to talk to them about a payment plan instead of filing but they wouldn't talk to her either.


We only have about 12,000 in unsecured debt so I really don't mind paying it back 100%...I mean, we did use it over the years so I'm not even looking for it to be discharged off. I just would like to be able to save a bit of my income every month instead of every penny over our "normal expenses" going to the creditors. It would be nice to be left a few hundred dollars every month to save for a rainy day.

[Floridagail]

What ended up happening? Were you able to get a Modify?