Many Chapter 13 Questions

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)When the trustee sets you up in a chapter 13, do they all of your disposable income or do they leave a little something in case of an emergency? Do you and your attorney decide how much $$ is paid in the plan? Or does the trustee?

2) My car will be paid outside of the plan. How does that show on my credit report?

3) We co-signed with our son for an education loan. The payments are current and will continue to be paid outside of the plan. How does this loan show on my son's credit report?

3) Can you have a savings account while in the chapter 13?

Thanks everyone for answering my questions.

[HHM]

1. You and your attorney propose a plan, but its a negotiation with the Trustee. Its somewhat understood that your expenses are padded to account for emergencies.

2. Honestly, your in BK, the least of your problems is you credit report. But, as long as you are current on payment, it should show "paid as agreed"

3. Should't change anything on sons report

4. Yes

[$$onlynoplastic]

I know that it is silly to worry about credit reporting, but right now I feel like that I have been screwed over by everyone including my attorney. I told my attorney if I can't get a workable plan then why bother?

[markal]

It is very important to keep your credit score as good as possible been in Ch.13.
Your car payments can help. Another advice: Do not include the credit cards with small balance in the plan. Keep them active in a good standing. It can help you to save thousands of dollars. You will be able to refinance your mortgage in a year and to pay off the Ch.13.

[chicago57]

I'm in Chicago, and I was not given a choice. Even my credit cards with very low balances less than $100 were included in Plan. They ran my credit report and sent every creditor the dreaded letter and all cards were immediately cut off. I even tried to send a payment to one VISA card and called them and they refused my payment. Hard to believe but true. This was a very low balance card.

[DIFFICULTWALK]

I'm in Ohio and had no choice - every single creditor was included in the 13. Disposable income??????? They may have "padded" my expenses a little, but it sure wasn't enough. I've been in this plan for a little under 2 years and it has been no picnic! I struggle from pay check to pay check. I must say that I am getting pretty creative with my budget and have learned a lot through this experience. It has been very humbling.

[HHM]

I'm in Ohio and had no choice - every single creditor was included in the 13. Disposable income??????? They may have "padded" my expenses a little, but it sure wasn't enough. I've been in this plan for a little under 2 years and it has been no picnic! I struggle from pay check to pay check. I must say that I am getting pretty creative with my budget and have learned a lot through this experience. It has been very humbling.

Well, rightly or wrongly, that is the intent of a chapter 13, its not supposed to be easy. A chapter 13 is designed to leave you with nothing at the end of the month. The reason being, Chapter 13 is a legal way to breach your contract with your creditors without having to pay back the full balance.

[cborn]

They won't leave you with any left over (disposable) cash at the end of the month unless it happens after paying back 100 percent. If you have left over cash and are able to pay back everything in full at the same time, then they don't care.

[AngelinaCat]

cborn, this is a VERY old thread, having started in 2005. And it started under the OLD BK laws before they changed in October 2005. This case will have long been concluded, and your post here is meaningless.

BKForum rules: http://www.bkforum.com/announcement.php?f=3 expressly forbid promoting old threads unless there is a very good reason for doing so.

Thank you.