n Regarding Savings

[CC180905]

Hi,

I just finished turning over all my paperwork for a means test and to make a determination if I qualify for Ch 7 or 13. I automatically do not qualify for 7 due to my income.

With that said, IMO from everything I’ve read it seems like I will probably fall into Ch 13. I have a couple of questions the first one is when they are creating your repayment plan/schedule do they allow for you to have some type of money that goes into a savings? I only ask this because I have a child and one never knows what may happen so I keep a very small amount in there to at least cover one month of must bills. And I set aside a small portion a month to be untouched for these purposes.

Also, do they allow for portions to vacation/leisure? Now by all means I do NOT take lavish vacations but I have a very stressful job so I do like to go to places as a mental escape from real world about 4x a year. Will this cease to exist for me?

I have no choice but to file bankruptcy as all my minimum payments alone exceed my DMI but I’m just wondering if I will need to plan for depression on top of the shameful feeling I already have that I have found myself in the situation I’m in 😣.

[Carmella]

I am not sure that you can set money aside for the things you mention. HOWEVER. We had a learning curve the first few months were the worst in trying to budget. If you are able to budget and are frugal in your expenses you probably can set some money aside for savings and for frugal vacations. We are in a different position as our young adult daughter/recent college grad is still at home and she is not considered a dependent, but we are still helping to support her so she can pay off student loans and her plan is to move out in 1 1/2 yrs (or less). If she was not living here and it was just me and my husband I know we'd be able to make the money go further (saving more and having vacations or weekend get aways). That is why I am hopeful you will be able to stretch it. I have read on this site about people who are able to save.

In my opinion it is depressing and there is a sense of shame in the beginning and I think that's totally normal to feel that way, but then you learn how to deal with it and accept it for what it is and KNOW that you are making positive changes then you can focus on the fact you will do everything in your power to not to get into this situation again.

[justbroke]

You can save -- and should save -- whatever money is leftover after your allowed expenses. You will not be allowed an expense called "savings" unless that's for a 401(k) plan. If your employer has a 401(k) plan, then put something in there as well... and hopefully you're already doing this.

As for saving, you must budget and take the extra money and put it aside. A Chapter 13 debtor has to do this or they will certainly not make it. Chapter 13s plans fail because the "plan" is ambitious and assumes that nothing is going to happen... but life happens. So, plan to save the extra money. Within just a few months of filing my Chapter 13, I got hit with 4 new tires and a broken sewer main (not covered by insurance). Ooops.