Able to save in Chapter 13?

[MomIcantFindmy]

I am meeting with a third attorney today and I have been wondering for a while......

If anyone has been able to save anything while living under chapter 13 or is the money so tight? I know all your disposable income is supposed to go to the trustee, I just wondered?

What are you saving for?

Does the trustee care if you have a savings account during chapter 13?

What are your plans once chapter 13 is behind you?

My husband and my plan would be to try to save every penny we can, if allowed, and buy property at the end of Chapter 13, if possible. Selling a car or waiting if we could not use cash for the purchase.

[Granny]

We have been able to save by putting an unexpected tax refund in a savings account and then adding to it any unexpected windfalls, no matter how small they are.

We are saving for those unexpected expenses that crop up, like car repairs, house repairs, medical bills. We were hit with a $350.00 septic bill shortly after filing and it almost sent us over the edge. There is money in the Ch 13 budget for house repairs, and that money has to be saved each month and not spent because you know you are going to have repairs at some point. We spend more in the summer on gasoline for the mower (we have two acres) so this winter, I intend to sock some away for that for next summer.

The only plan I have for life after Ch 13 is to continue to put away money for life's unexpected expenses.

I'm tired of living by the seat of my pants.

Retirement is out of the question for us, too late to save for that now that we are raising grandkids. My goal is to get my house paid for so the grandkids can continue to live here after I am gone and they are not yet grown.

[qwertysue]

Like Granny, we have slowly built up a "just in case" fund--it's nothing spectacular by any means. Compared to what we used to have though, it's a nice feeling to have something set aside.

We put ourselves on a slightly stricter budget than our official plan. We use cash for all non bills ( envelope for gas, groceries, entertainment) and whatever is left over in the envelope at the next payday goes into savings.

We both know that our *justin* savings is not for a vacation, stuff we don't need--it's there for something that will be needed down the road. In our case, I have a feeling it will be for transportation.

[chpxiii]

I am meeting with a third attorney today and I have been wondering for a while......

If anyone has been able to save anything while living under chapter 13 or is the money so tight? I know all your disposable income is supposed to go to the trustee, I just wondered?

When you make your budget which then determines what your disposable income is, generally speaking you will budget money for items on a monthly basis that you don't generally spend every month.

I'll give you an example from my situation. When I was coming up with my monthly budget my attorney noted I was missing a few things. One was a monthly clothing budget. I was surprised. I said to him, "But I don't buy clothes every month. In fact, I hadn't bought clothes in years." His respone was, "Well I would think you were about due for some new clothes. Don't you?"

So we came up with a reasonable amount for the purchase of new clothes every month. We did that for several areas. Auto, medical, etc. The result was not only did it lower my disposable income, the money that was "budgeted" in my schedules - since obviously I wasn't spending that money every month - allowed wiggle room and some money left over to save. Even in my debtor's class there was a huge emphasis onsaving money for when you need it since you can't use credit any more.

A good attorney will help you come up with a budget that the trustee will allow. I know it's scary when all you here is trustees taking "all disposable income" and things are pretty tight for you, and have been for a while.

What are you saving for?

A house and to pay off student loans.

Does the trustee care if you have a savings account during chapter 13?

I don't know about any other trustee, but mine encouraged it as evidenced by the debtor's class I attended. My trustee was Tom Powers in Dallas, TX.

What are your plans once chapter 13 is behind you?

Buy a house and pay off student loans plus save for retirement.

My husband and my plan would be to try to save every penny we can, if allowed, and buy property at the end of Chapter 13, if possible. Selling a car or waiting if we could not use cash for the purchase.

One thing I would encourage is do your best to get a higher income. I KNOW this is easier said than done, but one thing I did during this time was to collect myself, learn about budgeting and money, and work towards increasing my income. Which but ONLY by God's grace have I been able to do so.

[lrprn]

If anyone has been able to save anything while living under chapter 13 or is the money so tight?

We're 17 months in on a five year plan and have managed to save a small emergency fund with strict budgeting and by putting aside any extra left over each month, no matter how small it was.

What are you saving for?

Emergencies,,,,they are going to happen during Ch 13 as sure as the sun will come up tomorrow morning.

Does the trustee care if you have a savings account during chapter 13?

Our lawyer said not to worry about it. Our savings account has been in place since several months after we filed. Trustee has never said a word about it all the months he's been looking over our case while we fought through two trustee objections (we were recently confirmed! )

What are your plans once chapter 13 is behind you?

Hubby is 62 and I'm 56. We plan on saving like mad for retirement, preparing our home for sale, and just enjoying life understanding finally how to live within our means consistently.

Even though the court may be taking "all" of our disposable income in Ch 13 that shows up on the Means Test and Schedules, the real key to surviving Ch 13 is to have an excellent lawyer who knows the ins and outs of what is acceptable and what will be challenged in your local court when your case is filed. Writing good Ch 13 plans that are surviveable for five years is much more an art than a science.