Wow I feel stupid...

[Rozi]

So I just met with the Chapter 13 bankruptcy lawyer... Wow I feel so stupid and naive... I really thought filing chapter 13 would save me but it would only hurt me more. If I did a three year plan I am looking at $1600 a month and a 5 year plan is at $1,020 at 100% payback. I didn't realize I would still have to pay for my mortgage, HOA and other utilities on top of that! I thought the mortgage and HOA were included in the payment. I wouldn't be able to live at all. My hats off to you who are currently in a Chapter 13 payback. I am freaking out now because I don't know what to do. I can't file a chapter 7 because I need to keep my condo and my car. The rest of my bills are charged off credit cards and payday loans... Wow my head is just spinning right now.. I guess back to the drawing board...

[lvmilizia]

Your plan should be set up in a way that leaves you enough money to pay for your mortgage, Hoa, utilities, food and such. If the attorney told you otherwise I think I would talk to a different attorney.

[LadyInTheRed]

Don't completely rely on what one attorney tells you in a consultation. You may want to consult with another couple of attorneys.

Did the attorney say why you would be in a 100% plan? Is it really 100% of all secured AND unsecured debt? Do you have non exempt assets? Do you have arrears on your mortgage? If your mortgage payment is not included in your plan payment, then your plan payment should be your gross income, less payroll deductions, less mortgage, HOA, utilities, food and all other necessary and reasonable living expenses. If you have arrears, that would also be included in the plan payment and would have to be paid 100%.

[159515951]

I think the attorney must not have communicated very well, or it was his first day. Your plan will only require 100% payback if you have that much disposable income left after all reasonable expenses. Did the attorney do a means test? If not, there's no way to know what you'll (likely) be paying each month after confirmation.

[dmc-2008]

You prob should get a few more opinions, they are free and you will learn lots! Good luck!

[Rozi]

Thank you to everyone for all of the answers! She did not do a means test. She just added up my debt and told me due to my car and mortgage that I would need to be in a 100% plan which is fine. I just didn't expect it to be $1,050 for 5 years and $1650 for 3 years and then on top of that I would still have to pay my mortgage and my other bills. I am going to talk to another lawyer on Saturday. I will have to make a decision quickly since there is now a lien on my condo from the HOA people... ughhhhh

[despritfreya]

OP is being told a 100% plan due to the non-exempt equity in OP's home and car. OP, how about a monthly Plan payment you can afford with a balloon payment towards the end of the Plan to complete funding of 100% of all "allowed claims". Source of the balloon? Refi the home and pull some equity out. Discuss this with an attny.

Des.