I had a similar situation causing infeasibility and we notified the trustee that Debtor would voluntarily increase plan payments using exempt 401k
money so that the plan could payoff. They continued the MTD, and made sure
the (increased) plan payments were made but what I am finding that the
trustee's are now looking more carefully at case closing/auditing files. I had a feasibility issue in another Debtor case, where we calculated the shortfall and simply increased the plan payments recognizing that Debtor HAD
to pay the plan before any discretion expenditures for food, emergency,
and/or living.
Despite having provided tax returns over the years, some trustee's are now objecting based on the lack of annual income/expense reporting which is incorporated in some of the plans in various ways by various trustees (so even
if it is not in the plan or the code, they want more). Still working on this one... anyone else have this problem at time of case closure??
Very truly yours,
Shai Oved
The Law Offices of Shai Oved
7445 Topanga Cyn. Blvd., Suite 220
_Canoga Park, California 91303_ (x-apple-data-detectors://0/0)
Tel: _(818) 992-6588_ (tel:(818)%20992-6588)
Fax: _(818) 992-6511_ (tel:(818)%20992-6511)
Email:
ssoesq@aol.com
_www.shaioved.com_ (
http://www.shaioved.com/)
________________
The information contained in this email is intended only for the
individual or entity named above and may contain attorney privileged and
confidential information. If the reader of this message is not the intended
recipient, you are hereby notified that any dissemination, distribution, or copy of
this communication is strictly prohibited. If you received this
communication in error, please immediately notify us by the telephone number above
and return any hard copies to us via the postal service.. The Law Offices of
Shai Oved is a debt relief agency which helps people file for bankruptcy
under the Bankruptcy Code. Shai Oved is a Certified Bankruptcy Law Specialist
by The State Bar of California Board of Legal Specialization.
In a message dated 7/24/2017 4:02:21 P.M. Pacific Daylight Time,
cdcbaa@yahoogroups.com writes:
Debtor has about 7 months left on his plan. The plan will fall short by
approximately $4,500. Debtor cant increase his plan payment to cover the
difference. Can debtor borrow from his 401(k) to pay the deficiency at the
end of the plan? If so, would I need to file a motion to incur debt once we
get the trustees notice of infeasibility? Or should I file a momod now
stating he will pay a lump sum at the end with his 401(k)?
Shannon A. Doyle
Attorney | Virtual Bankruptcy Assistant
Phone: 855-378-4080
Fax: 562-249-8435
Licensed in California
(
http://www.ebankruptcyassistants.com/)
(
https://www.facebook.com/ebankruptcyassistants)
(
https://twitter.com/attorneyvba) (
https://plus.google.com/u/0/)
The post was migrated from Yahoo.