As all Chapter 13 debtor attorneys know, trustee objections in Chapter 13 cases are much more common and much more extensive. Recently, I sat down with Susan Gantt, a contract attorney who appears at Section 341 creditor meetings on behalf of several law firms in the Atlanta area.
In my last post, I discussed a very common objection – the failure of debtor's counsel and the debtor to file a payroll deduction Order to fund the Chapter 13 case.
Today, I continue the series by discussing another more common objection having to do with documentary proof.
2) Proof of post-petition mortgage payments – if you are buying a house, your Chapter 13 case will most likely provide that your on-going mortgage payments are to be made directly starting with the first payment that comes due after you file.
For example, if you file your case on March 28, you will be due for the April 1 payment. However, if you file on April 1 or 2, then your next payment is due on May 1. Often times, it makes sense to file on the 1st or 2nd day of the month so you don't have to come up with the cash to pay your mortgage payment immediately.
Recognize, however, that if you include another month of mortgage arrearage in your Chapter 13 plan, your plan payment will likely be slightly higher.
Also be aware that not every mortgage payment is due on the 1st of the month. Second mortgages or home equity lines of credit – HELOCs – may have a due date of the 15th or a different date. Realize, as well, that I am speaking about the due date, not the "late" due date.
In any case, you will need to bring proof of your post petition mortgage payments to your 341 hearing. Proof can be in the form of a canceled check, a copy of your check or even a copy of your online bank statement with the mortgage payment circled.
If you do not have proof of your post petition mortgage payment, the trustee will object and demand proof before your case can be confirmed.
[tags] proof of post petition mortgage payments, HELOC, Nancy Whaley, Mary Ida Townson, Adam Goodman, Chapter 13 objections [/tags]