Filed a chapter 13 and used allowed exemptions on 4/25. Filed repayment plan on 5/6. On 5/12, the one creditor I listed filed an Objection to Confirmation. I listed the item as a secured debt on the correct form with the full payoff value, but did take exemptions as I'm allowed. Creditor states plans provides no fix monthly payment & that trustee will never disburse money, although it's clearly on the repayment plan. They also claim to be paid is not able to be read, upon looking at the form online, the clerk at the bankruptcy court stamped "FILED 5/6/2016" over the monthly payment amount. It also says that it was not filed in good faith. The NDC has payments listed as 999 payments of $1, clearly this is a mistake on the courts side. I offered $231.00 monthly for 36 months.
Why are they objecting to this and when will a hearing be held? They gave no dates on the objection. Will they show up at the meeting of the creditors or the confirmation hearing? I'm in a sales based job and cannot offer them more than what I stated without taking away from required household expenses.
There is no way for an attorney on this forum to know why the creditor objected and what your chances are of having the objection overruled. The court will set the hearing, which may be the date of the confirmation hearing if that is the practice in your court. Our court sets the objection to be heard on a set date and sends a notice to all parties.
The fact that you are lost at this point is a prime example of why you will be infinitely better off if you are represented by an experienced chapter 13 attorney. Before you continue to proceed pro se, you need to read this paragraph from a 2011 report from the United State Courts website:
Chapter 13 is typically considered the chapter of choice for those wage-earners seeking to catch up on missed car or house payments and avoid repossession of a vehicle or foreclosure of a home. Confirmation of the chapter 13 plan that provides for payment of such arrearages over many months is necessary to begin the process of making up for missed payments. Completion of a chapter 13 plan through discharge can take 36 to 60 months, and is very difficult to achieve even in attorney-represented cases. Approximately 55 percent of attorney-represented cases reach confirmation. The number of self-represented debtors that manage to get to confirmation of a chapter 13 plan is 0.4 percent – clearly demonstrating that it is nearly impossible for this population to succeed in chapter 13.
.4% means 4 out of 1,000 pro se debtors were able to get their plan confirmed, while 550 of attorney represented debtors were able to get their plan confirmed. That study does not consider the number of pro se debtors' that were able to get a confirmed plan, but ended up paying more to creditors than they would have had the retained an experienced bankruptcy attorney.
You really need to take the time to meet with an experienced bankruptcy attorney that handles chapter 7 and chapter 13 cases. Most bankruptcy attorneys will meet with you at no charge for the initial appointment. You may be able to find an attorney that will agree to be paid all of his/her fees through the Chapter 13 Plan. You can use the Avvo "Find a Lawyer" link at the top of this page to search for an attorney.
Answers and comments provided are for general discussion only. My comments are not to be considered legal advice and they do not create an attorney-client relationship.
You don't have a very good chance of getting a Chapter 13 plan confirmed if you are representing yourself. This is a technical process. You really need to rethink representing yourself and consider working with an attorney. The good news is that your attorney fees can be made part of the plan and, in many cases, will come out of money you would otherwise have to pay to unsecured creditors.
Although it is not possible to fully address your issues without reviewing the lan that you filed, I would note that you are not entitled to take exemptions against property that is encumbered by a consensual secured debt. You can only take the exemption against equity you have in the property. For this reason, you are probably short changing the creditor. Also, you cannot cram down the value of the loan to the value of the property unless the loan was more than 910 days old when you filed your bankruptcy case.
The "not filed in good faith" part of the objection is boilerplate language which is usually easy to overcome once you fix all the other problems with the treatment of the debt, but you appear to have issues that need to be addressed.
The objection will be addressed at your confirmation hearing. It is likely that an amendment to your plan will be necessary in order to proceed beyond that point, but without actually reviewing the paperwork you filed, it is impossible to say more than that.
I urge you to consider working with an experienced bankruptcy attorney if you are serious about getting a bankruptcy plan confirmed.
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First, I assume you are not represented by an attorney. If you are, you need to contact the attorney. If you are not represented, I suggest you retain an attorney as the chapter 13 process is difficult to navigate; or, you could visit the help desk on the sixth floor of the federal courthouse. The hearing on objection to your plan will be held at the same time as the hearing set for confirmation. I am guessing here...but even if your plan says you will pay $231 over 36 months, your plan must list the secured creditor and provide either a set payment or provide for pro rata payments. Generally, exemptions will not impact a creditor's lien claim; so, that part of your question has no relevance. The creditor probably will not show up at the meeting of creditors, but will attend the confirmation hearing to present the objection.
You ask a number of questions concerning a Chapter 13 Bankruptcy, including why a secured creditor (most likely a mortgagee) objected to your Plan of Reorganization. The Short Answer in a case like yours is that you should have filed with an Attorney. If you do have an Attorney, he or she has been asleep at the switch. This is not at all how a case should be run, or how a Plan of Reorganization should be organized.
Without taking up all the space available, the long and short of it is that, most likely, nobody will likely be at your 341 Creditor's Meeting. They don't have to be. Instead, the objecting creditor will file its objection and if you fail to address it, confirmation will be denied and your case dismissed.
My best advice? Hire an Attorney. Revise your Plan and look at non-Bankruptcy alternatives just in case it is too late to save this case. Of course you can also refile if your case is dismissed, but there are side-effects if that happens (i.e. your Automatic Stay will be affected, etc.).
I hope this information has been helpful. Best of luck.
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