How to handle CH 13 plan payment increase

[lgeiger99]

I need some help with this one.

My plan payment will increase due to a car valuation. I will be making my 5th payment on October 25. The judge ruled today.

Is difference between what I have been paying and what I will be paying now retroactive?

How do I handle the increase?

[justbroke]

Work with your attorney. S/he will work with the Trustee and you may be able to spread out the difference over the "remaining" payments and there will be nothing due retroactively.

[lgeiger99]

Thanks. justbroke. I'm filing pro se. Should I propose it in my amended plan?

[lgeiger99]

Or can I just call the Trustee and ask? I haven't communicated directly with the Trustee, except for my 341. What are the perimeters for me to have direct contact?

[justbroke]

Or can I just call the Trustee and ask? I haven't communicated directly with the Trustee, except for my 341. What are the perimeters for me to have direct contact?

I wouldn't call the Trustee until you have amended your plan. Is your plan confirmed? If not, then you need to amend it with the new payments. If it is confirmed, then you need to Motion to Modify Confirmed Plan.

Once you have the amended plan, you might call the Trustee, but they are sometimes difficult to get a hold of, and certainly some of their staff don't know the "law" and give bad suggestions. (Been there, done that... almost had an argument with a staffer, but I kept my cool.)

Hopefully, you know all the procedural requirements around filing and serving an amended plan.

[lgeiger99]

Thanks again, justbroke. Not confirmed. Yes, I understand the procedural requirements -this will be my third and hopefully last amendment. I read something you wrote on the forum about preconfirmation payments not being included in the plan length where you live. You noted that the plan length starts after confirmation. Intresting. It got me wondering how to find out when the plan payments start where I live in AZ.

[justbroke]

I read something you wrote on the forum about preconfirmation payments not being included in the plan length where you live.

That wasn't me. In Florida, payments from the start (about 30 days after filing), count into the plan length.

You noted that the plan length starts after confirmation. Intresting. It got me wondering how to find out when the plan payments start where I live in AZ.

I don't know for Arizona, but here in Florida, the Plan is from (about) 30 days after you file and runs up to 60 months after that.

The reason I say to amend the plan first, then "talk" to the Trustee (by e-mail maybe), is so that you already have proposed a way to make up the payments. Sometimes, if you call them, they'll want payments made up in 3 or 6 months. If you amend the plan and make it spread over the remaining months, you can go before the Judge to get the plan confirmed. Plans are confirmed over Trustee objections all the time.

[lgeiger99]

Thanks for the advice, justbroke. I reallly appreciate it. I'm glad you responded - my plan was to get on the phone in 15 minutes and call the trustee.
Instead, I will amend the plan to accomodate the extra $ required spread over the plan length.

[lgeiger99]

One other question. Currently, I draw unemployment with no taxes witheld. I used the IRS estimated tax table to calculate how much taxes I will owe and and deducted it from monthly expenses on Schedule J. I did not deduct it from CMI on B-22. The trustee requires me to justify that expense and asked me to provide receipts. I plan on copying him the estimated tax table AND comply with his request that I turn over any tax refunds received (there won't be any)in each year of supplemental plan payments.

Is that appropriate to handle it this way in your opinion?

[justbroke]

Is that appropriate to handle it this way in your opinion?

My own opinion, is that's the only way you could provide such, but that's not technically a receipt. You may get some pushback from the Trustee, but what can you do?