Revised Sch I and J months before completion?!?!?!?

[bvolvo]

Ughhhh....I think I am going to cry. I think I am in serious trouble. I am about 6 months away from discharge of a 5 yr plan. Each step along the way we have contacted our atty to tell him when income went up, and when it went down, when our expenses were out of control (like with a new roof needed). Never has he said we needed to notify the court - it was always "lets see what the court says", and they never said anything - till this year. So this year, the trustee came back in a tither because of the large increases in income over the past 2 years and we have to issue new schedules I and J for 2013 and for 2014. In 2013 I made over $27000 in excess of the plan according to my revised Sch I & J that I just completed myself. Somebody please tell me that they are not going to go back and require that I pay this back to the court. Otherwise, I think I may have a lawsuit for malpratice on my hands against my atty for not filing timely with the court - I don't have this money! I have all this in writing via emails from him too. Somebody with knowledge - please please please help!

[justbroke]

Well, if the Trustee failed to look at income statements (tax returns) -- if they were necessary and provided -- then that's the Trustee's fault. Your attorney could argue that the Trustee waived any right to go back when they failed to motion to modify the confirmed plan in a reasonable time.

If there is a difference, there will be a negotiation first. Hopefully, your attorney was providing updates to the Court and/or the Trustee over this period and it is documented. The periods where you had extra expenses, like a roof, should be documented and receipts available. This can help to counter-balance the difference in income.

First you need to get the information and documentation of extra expense. I would definitely submit the roof expenses as well. I would also ask my attorney just what his/her strategy will be and why this has happened. I would look for a solid plan to counter the Trustee's request. If the Trustee has not filed a Motion to Modify Confirmed Plan, then you're not at that point yet.

As you are aware and eluding, the Trustee could claim that the difference was/is property of the Estate.

Were you under the median? Does your District use the Means Test (Form B22-C) or Schedule I&J for over-the-income filers? (Mine uses the Means Test to determine payment unless I&J are severely different.)

You really need to work with your attorney and really sit down with them for a decent meeting that goes over the numbers and the strategy.