What are reasons this Chapter 13 Plan/Repayment Plan would be rejected?


New Member
New York

Unfortunately, I don't have much of a choice to be a Pro Se. Scared, but I'm confident in my abilities.

After filling my entire last 7 days soaking up information, reading through rules & procedures and researching the law…I have come up with the following as my Chapter 13 plan.

I know the biggest problem is confirmation of a plan especially for Pro Se individuals. What are reasons this Chapter 13 Plan/Repayment Plan would be rejected?


-13,431.00: rent arrears (deduct 4,041 for one shot deal)
-17,500.00: car loan (does not qualify for cram down, 0/no equity)
-13,000.00: student loans
-Secured 1: 700
-Secured 2: 487
-Utility 1: 479
-Utility 2: 439
-rest is unsecured, non-priority: 14,000

Income from schedule I: 2,550

Left over/net income with all budgets below national spending limits from schedule J: 435

Plan needs to covered secured loans:

32.76 - trustee
260.83 - rent arrears: after one shot deal
19.44 - secured 1
13.45 - secured 2
13.30 - Utility 1 (additional payment)
12.19 - Utility 2 (additional payment)
398.00 - Car loan: secured, reaffirm
83.00 - Unsecured: $0 required.

-no priority claims
-no house/land
-no stocks, bonds, dividends, business, children or spouse
-I live alone, single
-no equity anywhere
-best interest of creditors: creditors entitled to $0 in chapter 7
-no assets that are not exempt so $0 must be given to unsecured creditors
-under means so no disposable income so $0 required for unsecured creditors.

ADDED PROVISION: A student loan provision can be that I'll remain in "deferred" status while in BK. Provision of rent arrears will continued to be paid, even if I move out, which is not expected to happen.

Note: My understanding is that non-dischargeable debt gets paid over 3-5 years just like unsecured creditors. They're lumped together. At the end of bankruptcy term, the dischargeable debt is gone. The balance of non-dischargeable debt after deducted bankruptcy payments from last 3-5 years, will remain and resume regular collections activities/regular payments.

What do you all think?

What are reasons this Chapter 13 Plan/Repayment Plan would be rejected?

If you file for Chapter 13 bankruptcy and your proposed repayment plan doesn't comply with all applicable bankruptcy laws, the bankruptcy trustee can object to the confirmation (approval) of your plan. Below you can learn why the trustee might object to your Chapter 13 plan and your options if the trustee does object to your plan.

The Chapter 13 Plan and Court Confirmation
Chapter 13 is commonly referred to as a reorganization bankruptcy because you pay back some or all of your debts through a repayment plan. When you first file your Chapter 13, you propose an initial repayment plan to the trustee, your creditors, and the court. Once your case is filed, you must begin making plan payments to the trustee (your first payment is typically due within 30 days). But your plan doesn't take permanent effect until it's confirmed by the court (which can take up to several months). (Learn more about the Chapter 13 repayment plan.)

In most cases, unless the trustee or one of your creditors objects to the confirmation of your plan, the court will approve it. But if you don't propose a feasible plan that complies with all bankruptcy laws, the trustee can object to its confirmation.

When the Trustee Might Object to Your Chapter 13 Plan
There are several requirements you must satisfy if you want the court to approve your proposed Chapter 13 plan. In most cases, the trustee will object to your plan if:

you don't pay all of your disposable income to your unsecured creditors in your plan (learn about how your disposable income affects your Chapter 13 plan)
you don't have enough income to afford your plan payments
your plan doesn't satisfy the best interest of creditors test (which states that your plan must pay your unsecured creditors at least an amount equal to what they would have received in Chapter 7 bankruptcy)
your plan doesn't include certain debts you are required to pay back (learn about debts you must pay back in your Chapter 13 plan)
the length of your plan is too short or too long (learn about how long your Chapter 13 plan must last)
you don't provide all of the supporting documents (such as tax returns or pay stubs) the trustee requires
you are behind on your plan payments, or
your plan is not otherwise proposed in good faith. (Learn about the good faith requirement in Chapter 13 bankruptcy http://www.nolo.com/legal-encyclopedia/good-faith-requirement-chapter-13-bankruptcy-plan.html)

What Happens If the Trustee Objects to Your Chapter 13 Plan?
In Chapter 13 bankruptcy, one of the trustee's most important responsibilities is to maximize payment to your unsecured creditors. This means that in most cases, the trustee will be arguing that you should be paying more into your Chapter 13 plan. For this reason, trustee objections are very common in Chapter 13 bankruptcy. (Learn more about the role of the Chapter 13 trustee.)

If the trustee wants to object to your plan, he or she will typically file a written objection to confirmation with the court and set forth the reasons why the court should not approve your proposed plan. If you don't respond to the trustee's objection, most courts will not confirm the plan. If you want the court to approve your plan after the trustee objects, you must file a written opposition and explain to the court why you believe your plan is ready for confirmation.

Your Options If the Trustee Objects to Your Plan
In most cases, you can:

fix your errors
file an amended plan, or
negotiate with the trustee to resolve the objections.
But if you can't work out a solution with the trustee, you must be prepared to argue your position to the judge at the Chapter 13 confirmation hearing (discussed below).

The Chapter 13 Confirmation Hearing
After you file for Chapter 13 bankruptcy, the court will schedule a confirmation hearing to determine whether or not your plan should be approved. If the trustee or your creditors don't object to your proposed plan, the court will confirm your plan at the hearing. (Learn more about the Chapter 13 bankruptcy confirmation hearing.)

But if the trustee objects to your plan and you are not able to resolve the objection prior to the confirmation hearing, you must explain to the judge why you believe your plan should be confirmed. After you present your position, the trustee will also have a chance to make an argument.

After hearing both sides, the judge will decide whether or not your plan should be confirmed. If the judge needs further evidence, he or she can also continue the hearing or set the matter for trial or an evidentiary hearing.

What Happens if the Bankruptcy Trustee Objects to My Chapter 13 Plan?
What are reasons this Chapter 13 Plan/Repayment Plan would be rejected? Figures: -13,431.00: rent arrears (deduct 4,041 for one shot deal)

Assuming this is a residential lease and the landlord does not have a judgment for possession, are you planing on moving or staying? If staying, this appears to be your biggest problem. How are you going to cure this default while staying current? At your suggested $260 per month (carved out of the Plan payment), it will take 36 months to cure. When does the lease end? The arrears probably need to be cured before the lease ends. Even if cured, is the landlord willing to allow you to renew the lease? Start studying 11 USC 365.

Next problem is the vehicle. Unless NY handles things differently (I doubt it), the vehicle will be paid through the Plan. If paid through the Plan, the carve out will be somewhere around $595 per month for 36 months, including interest. You do not "reaffirm" in a Chapter 13. Reaffirmations are for Chapter 7s.

Utilities are also a potential problem. Since you are not using an attny, you will be deemed to know and understand the law. While your delinquency is not large, if the utility provider is a stickler for the rules you better have an understanding of 11 USC 366. The amount owed before filing is nothing more than a general unsecured claim but 366 gives the utility company additional rights. If you do not want to deal with this issue, get current on all utilities before you file.

The above only highlights a few issues. You really need to invest in hiring an attny. Most will require a small retainer and then get paid out of the Plan payments. An attny will set up the Plan in a way that you can afford - the longer the Plan (up to 60 months) the lower the payment (excluding the huge problem with the landlord).