Planning for and discussing with client increase in
Posted: Fri Nov 22, 2013 1:21 pm
Third party can pay.
Plan pmt can be increased.
Liquidation of asset that is not property of the estate can be used.
Does the fee order say it MUST be paid from plan payments?
Congrats on the fees.
Jim King
Not in the office so I used my iPhone
On Nov 22, 2013, at 12:55 PM, "Alik Segal" wrote:
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
Third party can pay.
Plan pmt can be increased.
Liquidation of asset that is not property of the estate can be used.
Does the fee order say it MUST be paid from plan payments?
Congrats on the fees.
Jim King
Not in the office so I used my iPhone
On Nov 22, 2013, at 12:55 PM, "Alik Segal" <listserv.inbox@gmail.com> wrote:
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. 1st+2nd 925K. Currently FMV is 1.2M. Under current values the 45k IRS general claim
would be secured.
I believe that
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.There is no way to extend his plan beyond 5 years in chapter 13.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
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