Base amount, percentages, nothing adds up?

[Kricklet87]

I filed Chapter 13 in April of 2009. My base plan is 44000, and the percentage was 20% to unsecured. In February they upped the percentage to 25% because I had reached the 20% but not the base. I am one payment away from making my 60th payment but I am no where close to paying my base amount or the 25 percent (appx $3000 difference). Will I be required to keep paying until the base is reached (which will be about 10 payments since I'm paid bi-weekly)?

I'm so close and so anxious. I've been robbing Peter to pay Paul for 5 years and I can finally see the light at the end of the tunnel!

As information, I am in Middle TN.

[justbroke]

Please don't worry about how much unsecured creditors are getting. They get the scraps that are left over. You really need not worry about your Plan Base either as that may increase when you have additional unexpected income (like a tax refund) that is surrendered to the "custody and control of the Trustee".

You can't pay a Chapter 13 more than 60 months. The law does not provide that. The Trustee should start an audit soon (on your 60th payment usually). They will determine if everything that was supposed to be paid, was actually paid.

You really need to work through your attorney. In many Districts, the debtor attorney must start the motion for discharge in a Chapter 13 amongst other things. That includes shutting down the payments, certifying domestic support obligations, and motioning for entry of a discharge order.

[Kricklet87]

Thank you for your response. I hope you're right about the percentages and base. I was not required to turn over my taxes and I certainly did not have any extra income to make the base go up so I just can not figure out how they could be so off on it. I even inquired at my financial management class about the difference and she said that something did not sound right. Shortly after my confirmation hearing, my payments were increased from the original of 322 (base 41900) to 440 (base 57000). There was no way that I could pay the extra when I was struggling to pay the 322 as it was, so my attorney requested a modification and my payments were lowered back down to 319 (base 44000). It happened so quickly that I didn't even have time to make the first increased payment of 442. Its been a major struggle, especially with all the other struggles that life throws at you. Hopefully in two weeks, I will be able to put this behind me! Crossing fingers...

[Kricklet87]

Well, I was just going through my paperwork and when my attorney filed my paperwork for the modification, the wording says that the BK will last 60 months from Confirmation so I will go over 60 months with my payments by about 4 months. Words cannot express how upset I am. This explains the difference in payment totals and base amount.

[LadyInTheRed]

Well, I was just going through my paperwork and when my attorney filed my paperwork for the modification, the wording says that the BK will last 60 months from Confirmation so I will go over 60 months with my payments by about 4 months. Words cannot express how upset I am. This explains the difference in payment totals and base amount.

Sorry. That must be very disappointing to learn.

It's hard to tell if it is your attorney you are upset with or if you are just upset with the situation. Just in case, I want to let you know that it is not your attorney's fault. It is apparently how things work in the 6th circuit. We've heard about the 60 months starting from confirmation in Michigan and Ohio. Tennessee is in the same circuit. So, it seems to be a circuit-wide procedure.

[Kricklet87]

I am not disappointed in my attorney, just the situation thinking I had one payment to go and realizing that I have 4 months. My original paperwork said 60 months from first payment. After the modification it said 60 months from confirmation. I think I remember that they (Attorneys) had trouble getting the modification approved even though the Trustee and Judge was aware that my income would be decreasing and it was they (can't remember which one) who said to do the modification once that happened. I guess this is what they came up with to push it through. I just wish I would have noticed the wording so that I would not have gotten my hopes up.

[tobee43]

no, you will not have to keep paying. it's over! congrats!