I just don't understand this. I am filing Ch 13, my creditor's
meeting is tomrrow afternoon. My lawyer proposed I pay 15% which
would be 275.00 a month. I was told this wouldn't work if all my
creditors demanded payment, then I would have to pay 25% which would
be $340.00 a month. I can't really afford either, but obviously
$275.00 would be better. I have to file 13 because I want to keep my
car and I have student loans. I am a single parent not getting child
support and only making 10.80 an hour, full time. I don't see how
they can demand I pay this much, when I really have NO disposable
income at all. I guess I'm just screwed. And they are taking the
payments out of my paycheck automatically. What happens if I just
can't do this? Can I cancel the whole thing when later I am homeless
because I can't afford to pay the rent?

~~~~Cat~~~~

The trustee approves a monthly budget that does not allow for any
surplus cash at the end of the month. In that budget is your payment to
the Ch. 13 plan. They are not going to approve a plan that would either
put you in debt or put you out on the street or cause you to starve to
death.

You can, at a later date and with a motion to the court, convert a Ch.
13 into a Ch. 7 if you cannot meet the terms of the budget.

Good luck!

J.

cat wrote: I just don't understand this. I am filing Ch 13, my creditor's meeting is tomrrow afternoon. My lawyer proposed I pay 15% which would be 275.00 a month. I was told this wouldn't work if all my creditors demanded payment, then I would have to pay 25% which would be $340.00 a month. I can't really afford either, but obviously $275.00 would be better. I have to file 13 because I want to keep my car and I have student loans. I am a single parent not getting child support and only making 10.80 an hour, full time. I don't see how they can demand I pay this much, when I really have NO disposable income at all. I guess I'm just screwed. And they are taking the payments out of my paycheck automatically. What happens if I just can't do this? Can I cancel the whole thing when later I am homeless because I can't afford to pay the rent? ~~~~Cat~~~~

Part of the problem in some cases is that there is a certain
minimum payment that must be made for the plan to be confirmed.
For example, if there's a $60,000 mortgage arrearage and an 8%
Trustee's commission, the minimum acceptable monthly payment in a
60 month Plan would be $1,080.00, regardless of available funds.

--
Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@erols.com *
* http://www.erols.com/lawyer *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only.
It isn't meant to be legal advice and you shouldn't treat it as
such. If you want legal advice, speak with a local lawyer
familiar with your state's laws who can review *all* of the facts
and the law applicable to your situation.
************************************************** ***************


"John" <jmeola75@hotmail.com> wrote in message
news:JI6fb.13717$f11.9655@newsread1.news.atl.earth link.net... The trustee approves a monthly budget that does not allow for
any surplus cash at the end of the month. In that budget is your
payment to the Ch. 13 plan. They are not going to approve a plan that
would either put you in debt or put you out on the street or cause you to
starve to death. You can, at a later date and with a motion to the court,
convert a Ch. 13 into a Ch. 7 if you cannot meet the terms of the budget. Good luck! J. cat wrote: I just don't understand this. I am filing Ch 13, my
creditor's meeting is tomrrow afternoon. My lawyer proposed I pay 15%
which would be 275.00 a month. I was told this wouldn't work if
all my creditors demanded payment, then I would have to pay 25%
which would be $340.00 a month. I can't really afford either, but
obviously $275.00 would be better. I have to file 13 because I want to
keep my car and I have student loans. I am a single parent not
getting child support and only making 10.80 an hour, full time. I don't
see how they can demand I pay this much, when I really have NO
disposable income at all. I guess I'm just screwed. And they are taking
the payments out of my paycheck automatically. What happens if I
just can't do this? Can I cancel the whole thing when later I am
homeless because I can't afford to pay the rent? ~~~~Cat~~~~

Thanks for the responses guys, I appreciate it.

Well the 341 went okay I guess, took all of 30 seconds after waiting
around for 3 hours. My payments are $275 for 48 months, I thought they
were going to go 60 months , although the trustee said "will take
longer" after she said that. I asked the lawyer and there is still a
possibility they will go up in the spring. Only the secured creditor
was listed on the form they gave me; he said the unsecured would be
paid after the secured? I'm such a dunce about this stuff. What was
weird is that everyone that I heard called had to pay 25%; she didn't
say a percentage in my case, although the $275 is 15%. I'm just happy
it's $275 right now, a $65 difference doesn't sound like much except
on my extremely tight budget it is. . .


~~~~Cat~~~~