Waiting on hearing

[tinpusher]

So my wife and I have officially filed and have our hearing in March. What are the odds the trustee pokes all kinds of holes in our budget? I know that's kinda his job but just wondering how far they take it. My wife quit her job because her whole paycheck would go to the payment. Our budget is going to be tight. Thanks

[justbroke]

You are probably referencing the 341 Meeting of Creditors. it is not a hearing and is not held before a judge. It may be in the same courthouse, but will not be in a courtroom.

In a Chapter 13, the Trustee is almost always going to poke at your expenses. You are correct, that is their job. I don't know how your attorney came up with your Plan payment, but it reads as though you think it's too "tight". You should go back to your attorney and have them explain the numbers to you. You should also get a spreadsheet and go through the budget yourself as well. In most cases, there is wiggle room in the budget. I know that when my Chapter 13 was confirmed, I received $389 for each car payment, even though the crammed down payment set them below $200. (That's based on the Means Test.) Those two cars in the plan gave me at least $400 in "wiggle room" each month. It was a good thing because this guy Murphy kept showing up (new tires for cars not even 6 weeks after filing, followed by a sewer-line break at my home).

In the end, you must be able to save.

[tinpusher]

Thanks for the advice. Actually we do have a little "wiggle room". I think our attorney nailed the budget. I just have this vision of the trustee taking my wiggle room. I expect Murphy to appear. I've had dealings with that pesky guy in the past. That's why I get concerned about my payment getting raised. Thanks again

[justbroke]

I think the biggest thing for a Chapter 13 debtor to do, and the attorneys don't teach this and the "financial management" class certainly doesn't say this... start saving IMMEDIATELY upon filing! Don't wait for your case to get confirmed. I had even confirmed a "step" plan where my payments were lower to start so that I could go rent a new place and pay deposits, and save a little. (My plan stepped up after 6 months.) Sure, it caused the payments after 6 months to be a little higher, but it was not un-manageable.

It came in handy when I had to put those new tires on the car (flat, actually, just a few weeks after I filed and the threads were not only showing, but poking out the rubber). Then, within 12 months, I moved into one of my investment homes (after a lien strip motion) and then the sewer line broke. Not clogged. Broke! They had to dig up part of my concrete driveway (jackhammer) to get to the line. Without saving, I would have been up to my neck in... well... you get the point.

I wish you the best!

[LadyInTheRed]

tinpusher, hopefully your attorney knows the trustee well enough to know what will fly. My attorney knew the trustee well and my plan was confirmed without question. My attorney said I should be prepared to support the medical expenses, but I never had to.

What is it with Murphy and tires? I had a flat soon after I filed. Then another flat a month later. I kept picking up nails, probably by driving past the construction site a block from my house. Between the two flats, the passenger side window was broken even though there was nothing in the car to steal. I was glad to have a $100 comprehensive deductible for that. Another good thing to do before a Chap 13: decrease insurance deductibles.

[tinpusher]

My attorney does know the trustee. He went as far as saying that him and this particular trustee are personal friends. Then he warned us about the "smooth talk" tactics this guy would use to get us to up our payment. I'm hoping it all goes well and painless.

[Dt3813]

No one questioned mine, but the person (trustee, whomever...I was too stressed to know what was going on), said, "I can't argue with anyone paying $3600/month for 5 years."...... On my last payment......

[switch625]

In my 341, the trustee had no questions about our expenses. We didn't have anything that really raised red flags.

I wished I lowered the car insurance deductible before I filed, but I was midway through my policy period when I filed and I would think the trustee wouldn't like what he would see on the new insurance declaration page.