AZ 13 pro se question

[powerless]

I received the recommendation from the ch 13 trustee. He said the plan must be increased by $xxxx.xxx. That the debtors "must provide in writing, how the payments will be increased, such as $xxx.xx per month beginning in month 20."

The bold and underlining is in his recommendation.
there are a few other requests. AT the end it says something to the effect that if all documents are received the trustee will prepare the order confirming the plan.

My question is: would a letter saying we will increase the payment to $xxx.xx per month beginning in month 20 be sufficient?

[despritfreya]

Why are your payments going to increase in month 20? Is it because you have to raise payment to cover the funding needed to pay what needs to be paid by law? Is the Trustee telling you that you need to increase funding or did your original Plan contemplate the increase?

You have to explain to the Trustee why you think that in month 20 you will have sufficient income to fund the increase. Maybe you are self employed and believe your revenues will increase. Maybe you have a 401k loan and the loan payment will end. Maybe one of your kids will be an adult and no longer a dependent. You have to give the Trustee something to hang his hat on that establishes the increase is feasible. Hope that helps.

Des.

[powerless]

Thank you.

The plan is underfunded because one of the unsecured priority claims came in several thousand dollars more than what I thought they were owed. The additional payment is for that unsecured priority claim. Month 20 is arbitrary, it was the month that the trustee mentioned in his statement "such as $xxx.xx per month beginning in month 20." The increase in the payment is less than $200 if that makes any difference. So what you're saying is I have to come up with a reason why I can make the increased payment.

[powerless]

And the second part of the question is Do I have to amend the chapter 13 plan and submit that or will the letter to the trustee suffice?

[despritfreya]

Answer to second part first. . . No, you do not need to amend. You can fix the problem in the Order Confirming which the Trustee will formulate for you (I think). A simple written explanation to the Trustee should work.

Answer to first part. . . If the increase is only $200.00, if historically you have seen some wage increases, you could give him that cookie. Or, maybe, you could indicate that you may seek a part time job if your income does not increase to cover the extra expense. Quite frankly, no one knows what is going to happen 2 years from now so anything that makes sense and/or is reasonable should work.

Des.

[powerless]

Thank you Des. You are such a blessing. Believe me if I would have had the funds I definitely would have retained a lawyer.

[forgotten]

The plan is underfunded because one of the unsecured priority claims came in several thousand dollars more than what I thought they were owed. .

Are you sure they are owed what they claim they are owed? You may want to object to the claim and make them prove it if you feel it is incorrect.