how does bk attorney get paid, fiduciary to whom

[despritfreya]

how soon can you see the plan from the attorney?

In a Chapter 13 the Plan is formulated before you file the case and is filed with all of the Schedules and Statements. Payments to the Trustee begin 30 days after filing. The cram downs have to be done by separate motion or adversary which, I assume, would be filed shortly after the case is filed. Payments to each lender would have to begin quickly.

In a Chapter 11 the Plan is formulated within a few months of filing. Distributions under the Plan (made by you as the Trustee) begin after the Plan is approved by the Court. The cram down adversaries are filed shortly after the case is filed and you would be required to begin payments in some amount withing a month or so of filing. These payment to the secured lenders may not be the final monthly payment but they will be deemed "adequate protection payments" until the cram downs are finalized. Your attny will give you the details.

Des.

[lrn]

Des,
I think that I see your point.
with a Real Estate after cram down about $700K (secured debt) and the unsecured debt side goes up to about $300k,
in Ch13, the plan will receive in five years $700k (secured debt) + interest + part of the unsecured debt payment
tt will get say 10% of the plan payment ~ 70K +
with say 5% of the plan payment ~ 35k +
and I have to go out refinance, that is another cost to me.
am i correct?

[lrn]

i just want to see a clear picture, so I can go discuss with lawyer.
last friday, i met with lawyer and I was clueless.
so my plan:
1. don't worry about the auction date coming in four days.
2. see which is better 13 or 11 and save me ~ $920 to reclass from 13 to 11. I cannot afford to spend more!!!
3. do i need to do an emergency filing?
4. call two more lawyers do you do personal chapter 11 and how much your retaining fee?

[lrn]

Des

"In a Chapter 13 the Plan is formulated before you file the case and is filed with all of the Schedules and Statements. Payments to the Trustee begin 30 days after filing."

does somebody need to approve the plan, after filing and before payment to tt?

[lrn]

what if my lawyer is reading this forum?

[LadyInTheRed]

lrn, to make your posts easier to read, you can quote text by either clicking "reply with quote" and then deleting the quoted text you don't want to include without deleting the code that appears in brackets, or copy and paste the text like you have been doing, then select the text and click the text bubble above the editing box. That way, the quoted text will appear like it now does in your post #34 that I edited.

[LadyInTheRed]

what if my lawyer is reading this forum?

What if she is? Maybe she'll learn something.

[despritfreya]

1. don't worry about the auction date coming in four days.

Agreed if this property is not worth “saving”

2. see which is better 13 or 11 and save me ~ $920 to reclass from 13 to 11. I cannot afford to spend more!!!

The decision on which Chapter depends on the circumstances. From your posts I believe the 11 is the better choice. The $932 is the conversion fee from 13 to 11 HOWEVER the actual filing fee for the 11 is $1,213.00. If you file the 13 first you will have paid the $281.00 filing fee for the 13. That amount will transfer to the 11 and the balance ($932.00) is deemed a “conversion fee”. Yes, the overall filing fee is much higher in the 11 and is a consideration when deciding how to proceed.

3. do i need to do an emergency filing?

If there is no “emergency” then “no” you do not need to rush filing.

4. call two more lawyers do you do personal chapter 11 and how much your retaining fee?

Yes. The more attnys you talk to the more educated you will become.

does somebody need to approve the plan, after filing and before payment to tt?

No. You make payments on a monthly basis to the 13 Trustee. Once the Plan is approved the Trustee disburses the money to the creditors. Until the Plan is approved the funds sit in the Trustee’s account.

Des.

[lrn]

Des,
I think that the important part is the monthly payments of the cramped down debts for five years.
the payments are high and cannot be missed vs. the longer amortization terms.
Des, How do I ask for 30 yrs. is it easy?
do I stay in bankruptcy status for 30 yrs or five years, credit score-wise?

[lrn]

in 11, do we pay unsecured debts for five yrs and secured (cramped ) debts for longer term (10-30yrs)?

[lrn]

can we just do emergency filing to have a stay, and have enough time to do short sale?
i don't know why the plaintiff's attorney does not give us more time, It is hard, our attorney tried calling and emailing asking for more time
to do short sale. Our attorney emailed them many times to postpone the auction, getting no answer.
should I show up in their office. We really do not want bankruptcy.

[keepsmiling]

Why waste time and energy on a property you don't want when bk is imminent?
do you have other sources of income besides the properties you own? does it make sense to surrender all of them and do a 7? Don't know if that was discussed or not.

[lrn]

bk is our choice right now, just need to ask for 11 with lower fee.
please pray for me

[despritfreya]

How do I ask for 30 yrs. is it easy?

Your attny files the adversary proceeding to establish value and, if the lender files an Answer you incorporate payment terms with the settlement on value. If the lender does not file an Answer you obtain a default judgment establishing value and put the payment terms into the Chapter 11 Plan and wait for the lender to object and/or file the 1111(b) election. If that happens you negotiate terms and buying back the 1111(b).

do I stay in bankruptcy status for 30 yrs or five years, credit score-wise?. . . in 11, do we pay unsecured debts for five yrs and secured (cramped ) debts for longer term (10-30yrs)?

Can’t comment on the credit score as I have no clue, but your Plan will probably last 5 years (paying your “projected disposable income” to the unsecured creditors and any additional administrative fees (attny)). Once the Plan is confirmed you can move to close the case. The case will have to be reopened at the 5 year mark to get the court to enter the discharge. The payment term on the cram down out lives the bk just like a regular mortgage loan.

can we just do emergency filing to have a stay, and have enough time to do short sale?

Short sales are stupid. If you intend to walk from the property that is about to be foreclosed, let it be foreclosed and wash your hands of it. That will end your rush to file. Much better to make sure you understand what you are getting into BEFORE you rush in.

Keepsmiling is right. If you do not want any of the 7 investment properties (or it does not make economic sense to keep any) and you are current on your residence, look at the Chapter 7.

Des.