Planning for and discussing with client increase in plan payment
Posted: Fri Nov 22, 2013 12:54 pm
Listmates,
Debtor is 2 years into his 0% 13 plan filed on 11/1/11. He has 3 years (36
payments) left. Court has awarded 26K in supplemental fees. Another
application for $10K (very roughly) is on the way.
Debtor needs to close his case on 11/1/16 because:
- He crammed down on a cheap NV condo bringing mortgage balance from
135K to 50K. Current value is $80K
- He also stripped a 60K IRS 3rd lien on his CA house, 45K of which was
general unsecured. 2012 BK value = 830K. 1st+2nd = 925K. Currently FMV
is 1.2M. Under current values the 45k IRS general claim would be secured.
I believe that
1. If nothing is done, at the end of 5 years on 11/1/16 he will be
unable to close his case unless someone gives him $26K (at least). If he
does not close his case valuations will be lost.
2. There is no way to extend his plan beyond 5 years in chapter 13.
3. Converting to 11 will jeopardize his valuations obtained in 2012 and
may open the door to an 1111(b) election in NV.
Here are my questions:
A. Should the plan be amended ASAP to increase his payment by $722
($26K/36 mo)?
B. Any suggestions about discussing this to the client?
Alik Segal
Alik.Segal@gmail.com
310-362-6157
California Central District
Listmates,Debtor is 2 years into his 0% 13 plan filed on
11/1/11. He has 3 years (36 payments) left. Court has awarded 26K
in supplemental fees. Another application for $10K (very roughly) is on
the way.
Debtor needs to close his case on 11/1/16 because:
He crammed down on a cheap NV condo bringing
mortgage balance from 135K to 50K. Current value is $80KHe also stripped a 60K IRS 3rd lien on his CA
house, 45K of which was general unsecured. 2012 BK value 830K.
the 45k IRS general claim would be secured.
I believe that
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