Just starting chapter 13 process...

[mountaingal]

Hi there! So far I have read gone through some of the 'sticky' posts and it has answered a lot of questions and been helpful. So here's one more...

Why am I SO scared?! Tell me I am not alone in that. My husband is stressed and at this point just wants to get it over with and filed and I have just been filled with constant worry, doubt, guilt, failure, etc. We met with an attorney that came recommended and we like him and his whole office. They were helpful and kind. I felt some relief since that meeting but I am still so scared of this whole process.

We have approx $100,000 in student loans combined, one car loan that has about $11,000 left on it (we own our other car), a personal loan of $10,000, and about $33,000 in CC debt. Yikes. I know. We also own a home and have a mortgage that we are current on. I will save the sob story but it truly was a combination of medical bills, my pay cut a few years back, unexpected home repair expenses, and stupid decisions. We have a good combined income of approx $140,000 a year but due to so much going out in debt payments we have never been able to catch up. Due to our decent income, our attorney said our monthly payment will be high but the good news is that he will make our student loans the priority debt which will mean they will be almost or a good chunk paid off at the end of the 5 year plan. Anyone else in a similar situation with student loans? I work only part time and am attending and paying for nursing school out of pocket and have one year left. To make up for my lower income my husband does side work (files a 1099) on top of his day job to cover us. Once I finish school and have a full time job my husband can stop the side work and only do his day job (poor guy). What makes me nervous is that his side work income is only somewhat predictable based off what he does that month. I am really worried that our monthly payment in this Chapter 13 plan will be really high. I know we have to budget BIG TIME. We have already started watching our spending and stopped going out to eat and needless spending. Without using the word bankruptcy, we told our son that money is tight and mom and dad have to be on a budget so that we can save money and better our future. He is pre-teen age so luckily he seemed to really get it and understood.

Thanks for reading, if you made it through...haha. I know we just need to get this done and filed so we can move on and I can start sleeping again I even developed a bleeding ulcer this year due to our financial stress and feel at times really depressed about it. Our marriage has also suffered but we are supporting one another. I just hope there is light at the end of the tunnel.

[sophieanne]

Hi there and welcome to the site. I can tell you that you're feeling what most people have felt when they started on this journey. What you will read a lot of is, honestly, I don't know why we didn't do this a long time ago. My husband and I have been in a very high payment for almost the last 4 years. We've managed to pay extra into the plan and have a few creditors who didn't file a claim. We're now in a position that by paying a little extra we will be done next month after 4 years. We are in a 100 percent plan so that's why we can't be done early. Stop the hurt and pain and illness and do what's best for you and your husband, the sooner you start, the sooner you'll be done Good luck with your decision and getting started.

[bankruptbull]

Just wanted to say good luck! I am just now starting off on the chapter 13 journey and have the second meeting with my attorney this week.

[jixxxer]

Same here, going in for second meeting and down payment to get things going; Only thing is all I read is how many people Fail at Ch 13 bk! Pretty scary!

[bankruptbull]

I am doing my initial down payment this week too. I think I got a decent deal, I really like my attorney and she is letting me make 3 payments of $500 each with the balance in plan. I completed all the paper work last week and gathered all of my financial documents in preparation for this meeting coming up. That was a lot of documentation!

[LadyInTheRed]

Yes, there is light at the end of the tunnel!. Many people are terrified before filing BK. But, most also find immediate relief after filing. You will learn great budgeting habits that you will be able to pass on to your son.

Same here, going in for second meeting and down payment to get things going; Only thing is all I read is how many people Fail at Ch 13 bk! Pretty scary!

Keep in mind that those "failure" statistics include people who convert to Chap 7 and people who filed Chap 13 to fend off creditors for a limited amount of time and never intended to get a discharge. Also, bkforum members appear to beat the statics. So, as you go through the process, make sure you post questions about anything you don't understand or if the plan payment your attorney comes up with seems more than you can handle. We may be able to help you avoid mistakes that will doom a plan to fail.

[mountaingal]

It is a relief to know I am not alone in my worry and being scared out of my mind! We are saving for the lawyer fee and next need to complete our paperwork, then we can turn in everything to him. Part of me has this deep shame in regards to how we got into this mess but I also realize that many people are in the same boat. My parents would die if they knew and we decided we are not going to share this decision with either of our families since we just don't need the judgement or pity. My in-laws are terrible with money and they themselves have had massive debt in the past so they would likely be more understanding. My parents on the other hand were very frugal my whole childhood, saved a lot of money, and invested wisely even though they were not high income earners. They are retired now and own their home, cars, have no CC debt and money in the bank. My goal is to be in that same situation some day having learned a lot of hard lessons and smart money skills.

[bobcat216]

MountainGal, you are not alone in your "struggle". There are not only very helpful people on this board but also many that have been or in the same boat you are. Best thing to do is brush off your feeling of failure and get to moving forward with your financial life. Like the Lady in Red stated use this as a learning experience and
an opportunity to right the ship. I was newly divorced and had to do the Chapter 13 on my own and I am not ashamed to admit that I was scared to death. I was incredibly ashamed to admit 1 I was getting a divorce and 2 I had to take a Chapter 13 to keep the house. Hang tough and welcome to the board.

[159515951]

My parents on the other hand were very frugal my whole childhood, saved a lot of money, and invested wisely even though they were not high income earners. They are retired now and own their home, cars, have no CC debt and money in the bank. My goal is to be in that same situation some day having learned a lot of hard lessons and smart money skills.

You're taking the first step now towards getting your financial house in order, and if you're serious about it and make real changes, you'll meet that goal. So many people just run from their problems, and you're facing yours head on. There's no shame in saying "oops" and taking responsibility for your actions.

[dmc-2008]

Yes! I was scared! I also chose not to tell anyone, even my 17 year old does not know. I did finally tell a brother and it was a relief. Its nobodys business. Period.
It is a law in place to help us correct abd get back on our feet! Good luck, you can do this!

[faithwolf]

Just seems like we filed and we are in month 23 already , our student loans are paid through our chapter and will only have about 4 payments left after our 5 years. It was scary at first but hasn't been to bad but we did home repairs before we filed.