Dilemma with potential promotion

[Thingshappen]

Hello again. I may get a promotion soon (EOY) which may increase my salary by 8-10 percent. I am filing for chapter 13 the first week of September. Will the trustee go after the increase? Also, what if the promotion happens before the payment plan has been confirmed? Will the trustee ask for new pay stubs after the filing? Sorry for so many questions but you guys are so helpful.

[justbroke]

Probably not likely, since it's below (at) the "usual" 10% increase limit. However, you will definitely be in the throngs of your confirmation and confirmation isn't going to happen for at least 5 months (in Florida). that means that your 341 Meeting will be in October, your first confirmation hearing in November, but that will be continued another 4 months. It's about 180 days average in Florida if there are any objections, and I'm guessing that there is likely to be one (because generally there are).

Having wrote that, I don't think the Chapter 13 Trustee is going to ask you again, after the 341 meeting in October to mid October (30-45 days after filing). You'll likely be okay, but if you get asked for new paystubs, they'll see it and object to confirmation.

[flashoflight]

Your lawyer is going to know local customs. Good thing you don't live in my area of California. I had to keep submitting paystubs until my lawyer and the trustee informally sealed the deal on a confirmed plan. I did not have to submit anymore paystubs after informally sealing the deal and the date of the confirmation hearing. Don't forget if you ever need to modify a plan, you may need to submit a new I&J which means paystubs can be used to seize your raise if you don't have offsetting trustee approved expenses or paycheck deductions.

[Thingshappen]

Probably not likely, since it's below (at) the "usual" 10% increase limit. However, you will definitely be in the throngs of your confirmation and confirmation isn't going to happen for at least 5 months (in Florida). that means that your 341 Meeting will be in October, your first confirmation hearing in November, but that will be continued another 4 months. It's about 180 days average in Florida if there are any objections, and I'm guessing that there is likely to be one (because generally there are).

Thank you Justbroke. Just a few more questions:
1) So they are three meetings? The 341 meeting, the first confirmation meeting and the final approval meeting? Do I have to attend them all?
2) Also, what are examples of general objections?
3)Do the 60 months plan starts on the day of filing or the day of final approval

thanks again.

[Thingshappen]

Your lawyer is going to know local customs. Good thing you don't live in my area of California. I had to keep submitting paystubs until my lawyer and the trustee informally sealed the deal on a confirmed plan. I did not have to submit anymore paystubs after informally sealing the deal and the date of the confirmation hearing. Don't forget if you ever need to modify a plan, you may need to submit a new I&J which means paystubs can be used to seize your raise if you don't have offsetting trustee approved expenses or paycheck deductions.

I think I will call my lawyer to get more information about it. He knows the Trustee very well.

thank you flashoflight!

[justbroke]

1) So they are three meetings? The 341 meeting, the first confirmation meeting and the final approval meeting? Do I have to attend them all?

Ther is a 341 Meeting, an "Initial Confirmation Hearing" and a "Final Confirmation Hearing." In Florida Districts, the "confirmation hearing" (at the initial confirmation hearing) wil be automatically continued to about 3 months in the future. This is to allow all the claims to come in by the claims bar date.

You attend the 341 Meeting only, unless your attorney asks that you attend an "evidenciary" hearing or the final confirmation hearing. Usually, a Chapter 13 debtor need only attend the 341 Meeting.

2) Also, what are examples of general objections?

If you have a vehicle and your attorney does a "cramdown" then the vehicle lender will likely object (even if they're wrong!). Some Chapter 13 Standing Trustees have standard objections to confirmation regardless of whether there is anything materially wrong. I think that this just slows down the confirmation which is what they want. Florida wants confirmation to be final only after the time has elapsed for the creditors to file claims, another 30 days for objections, and then the case is ready for confirmation. Not all jurisdictions do it like Florida, but I like Florida's approach.

3)Do the 60 months plan starts on the day of filing or the day of final approval

The day that you filed.

[Thingshappen]

Based on what I have read on this forum, it seems that the process in FL may be a bit "better" than in other states including the exemptions. The home equity is protected as well as HSA accounts, 401K and others. My payment may be high due to disposable income and not non exempt assets. I really want to get this over with. The stress and the uncertainly is killing me. The daily collection calls make me uncomfortable since I am not used to it. I have had great credit for years but made some bad financial decisions post COVID and here I am in this mess. Before considering Ch13, I thought about cashing out my 401K to pay but that would be deferring the issue to when I retire which is a big No-no. I am close to 50 now so I will not be able to replenish the account. I also considered debt settlement but thats not guaranteeing that creditors will want to settle. Not to mention the cost of debt settlement companies which keep an average of 20 percent. Thanks a lot for responding my questions.

[Carmella]

Thingshappen similar here we always had good credit and made some bad financial decisions, but it occurred over 20 yrs with many times just about out of debt and then wham something happened. And we procrastinated a few years to actually file, that's really my only regret waiting so long because it was so stressful. There's much relief, at least for us, after the 341 meeting because the stress was different. We had a really large payment, more than I usually see people post and that did make things tight.

It was really the best option for us and I was 53 at the time. If we didn't procrastinate, I would have been around 50 or 51.

The first lawyer we saw suggested that he did the debt settlement with us, but actually he was kind of sketchy and we had bad vibes. I am glad we trusted our gut since we were clueless about all this stuff. But I was smart enough to know that if he was calling the credit cards and negotiating that would probably be pretty expensive for us to pay him for his time on hold! You are right there's no guarantee the creditors will settle and then if they do settle the amount they forgive counts as income on your income tax so you are paying that!

Hang in there.

Talk to the lawyer about your potential raise he should be able to give you an idea of what will happen. Someone said there's usually an objection at the 341 and we had an objection, but it was ok--didn't have to give them more $ We brought pay stubs up to the date of the 341 meeting and did not have to supply any afterwards.

[Thingshappen]

Thank you so much Carmella! Finding this blog was a blessing to me. I have had so many questions answered and the emotional support is amazing. I will you all posted through my process. I am sure I will be others in the future as well.