I feel like abandoning my plan (the hits just keep coming).

[mclawdawg]

Hi all,

Quick update on everything. I'm in my Chapter 13 plan now a little under a year and have made my payments on time. It's a 3 year plan, and it seems like just life likes to keep testing me as of late.

I currently don't have a set in stone residence since I've moved out of my house a couple months ago, but I've moved into a house with my girlfriend who I pay the same amount due to the Chapter 13 plan. I have to inform the lawyer & trustee about my current residence, but my girlfriend will not let me change my address to her house since we've been off and on. So in a nutshell I have to move out and find a place because this isn't working with her and I need to be 100% with my lawyer and trustee to keep this going. She is also the reason I am in this mess, but I will not blame her for my poor financial health.

My questions:

1.) How on earth can I afford a down payment for a new place? I do have some money saved but if I deplete it I fear the worst.
2.) She owns both cars in her name, yet I pay for one of them which is in my Chapter 13 plan. We have a child together and if she takes me for Child Support I can no longer afford the Car Payment (that I need).

Should I get my plan re-evaluated if this happens? I'm worried that there won't be enough money for the trustee to take that they'll just abandon my plan all together.

3.) If a plan fails, do you start off behind? I know there are lawyers expenses, court fees, etc, my fear is that I won't be able to keep up.

Thanks all,

[Zombie13]

Well, if you have a change in status, I expect you will need to redo your plan. I can't offer detailed advice on that.
Regarding the relationship situation, I feel it's a sensitive subject. Having a child together, and being off and on, living in her home, cars in her name while you make payment on one, etc. - the two of you will need to find a way to work it out. Perhaps couples counseling, for example. Even if it's an agreement to live in the same household, share parenting responsibilities, but have no 'couples relationship', that may be better than ditching your plan, moving into our own place, etc. because that may increase your problems exponentially. I don't have more to offer than that; I hope it all works out for all three of you.

[flashoflight]

I wouldn't bail out of the plan. So far everything you wrote seems fixable.

Chapter 13 plans are changeable with a lower plan payment most of the time. The legal fees and the reduction in disposable income come out of the unsecured creditor's dividend. Unless the unsecured dividend is already close to zero, you should be able to change the plan without dipping into your own pocket. You can change the plan once the issues related to the child, the car, and housing have been stabilized. You might end up skipping a trustee payment out of necessity which can be taken care of during the motion to modify at the same time. Tell your lawyer what's going on and give him advance notice before the due date if you absolutely have to skip a trustee payment to pay the security deposit on a new place or whatever it is. If the trustee won't reduce your disposable income and you have a covid related hardship, you can stretch the plan to 84 months to lower the payment. But those covid provisions expire in March 2022 I think. Don't extend the plan to 84 months unless the trustee is being unreasonable though.

[Carmella]

I don't have any solid advice, but reading this makes me think you have 2 yrs left. You have a child. You might be able to work on your relationship. This is a TON of stress for both you and your girlfriend. BK is difficult and financial problems in general are difficult on relationships. It does concern me that your girlfriend played a part in the financial problems. I hope whatever the cause was that she and you are working on making sure that doesn't happen again. I am not saying this to place any blame and I don't need to know what the problems were. My comment is basically work on it so it doesn't happen again.

I agree to talk with your lawyer and see what the options are. It sounds very complicated since it's on/off again, you have a child/child support and the car in her name and you pay per the plan and obviously you need the car. Your lawyer probably has seen similar scenarios and can give you the best advice as it relates to the BK

If there is any way to stick with the plan I encourage you to do that since it's "only" 2 yrs left and then you can be free of BK13 and have a better financial standing in the end.