Life in a Chapter 13

[imaloser]

what's the big deal ? people finance cars for 5 or 6 years...right ? people mortgage their homes for 30, now even 40 years...right? a chp13 3 to 5 year plan ? piece of cake !

[lindertaz]

How did you find the mystery shopping gigs without paying their fees?

[lrprn]

Lindertaz, please do not post to old threads like this one that have been inactive for more than 2-3 months. Most of the members posting on this thread have moved on and won't see your question. Also old threads can contain outdated information - that's why it's a forum rule.

In this situation in the future it's best to start a new thread of your own. Thanks!

[Carter]

Tough in a Chapter 13

I have been in a chapter 13 since November of 2007 and since then my already tight budget is even tighter with the price of gas which has drastically increased. My electric bill the past two months has even increased by $100 for a fuel surcharge added to my electric bill. Also groceries have increased too. I am now in the negative every month! I find myself more stressed now than I was last November when I filed my chapt. 13!!! I am stuck in a five year plan and I feel helpless and don't see how I can keep this going for the next 4 yrs!!! I see no light at the end of the tunnel for me. I am angry because I am in this mess all because in 2006 I bought a house (primary residence) through a subprime predatory lender and ended up foreclosing not even a year after buying my dream home. The lender gave us a preapproval for a fixed rate mortgage at the same payment we were already paying for a house. Then 10 days before closing the loan got denied because of debt to income being too high! The subprime loan we got stuck with caused our debt to income ratio to soar through the roof even more than the fixed rate loan whould have been!! We got bamboozled! Now I am stuck in a 5 yr plan with most of our debt being the house we lost!! Our income should have us in a 3 yr plan but the Trustee kicked it back because the creditors were not going to get enough money in the 3 yr. plan. Our income qualifies us for a 3 yr plan though!!! Life has not been fair to me since 2006! What's worse is we had our credit scores at 620 when we bought that house after being discharged from a chapt. 7 seven yrs prior! Now we are back in trouble AGAIN!!! I feel so stupid to have let this happen again!!!

[Carter]

Life in a chapter 13 for my family of 6 is a struggle every paycheck! I filed November of 2007 and since then my budget has changed considerably with the increase in gas, food, utilities etc...My electric bill has even added a Fuel Surcharge of an additional $100 per month (now paying total $300 per month for electric bill)!! To make up the shortage in my budget I am having to live off of $120 per month for groceries for a family of 6 (my four boys are teens and eat like grown men, plus myself and my husband). I also have had a ton of car repairs within the last 3 months putting me even further behind. I am no better off financially then I was before we filed. The only difference is the the creditors can't garnish my wages. I am stuck in a 5 year plan even though when the lawyer did the means test our income qualified for us to be in a 3 yr. plan but the trustee wasn't happy with the creditors getting only 1% now with us being in a 5 yr. plan they are getting 22% and $400 per month. The bulk of what we owe in the plan are federal and state taxes (because we tapped into our 401K to try and save our house from foreclosure in 2006) the 2nd trust for our house was an ARM through a predatory lender so was the 1st trust. The 2nd trust lender started court proceedings to garnish our wages for $15,000 so we had to do something quick. We would have qualified for a chapter 7 except that we had already filed chapter 7 in 2001. Since the laws got changed in 2005 we had to do a chapter 13 or try and hold off until 2009 to file another chapt. 7 we couldn't wait that long for fear the 2nd trust lender would garnish our wages. Our lawyer wants us to stay in the chapt. 13 until Dec. of 2009 then convert us to a chapt. 7 but I don't know how this will affect our credit. Will this be considered an amendment and one hit on our credit? Or will this be worse on our credit? Are we better off just trudging along for another 4 yrs in this stinkin chapt. 13 or would it be better to convert to a chapt. 7 in a year?? Confused! I don't want my credit to be worse than it already is. I feel impatient and ansy every time I think about this mess that I am in because I want to buy a house! I hate being a renter!! Will it take me longer to buy a house in a chapt. 13 than it would in a chapter 7? I've heard you can buy a house after 2 years from discharge in a 7 but how long is it in a 13? If I'm in a 5 yr plan does this mean I can't buy a house until my 5 years is done? So many questions... How could I have let this happen to me twice in 8 yrs!!! Before the house foreclosed in 2006 my credit scores were good we had overcome the 7 in 2001 now I am worse off! I am so upset, and I feel so stupid!!

[gingerbug]

It is easier for me. I have enough money for groceries, rent, AND the light bill. Learning to budget is the hardest part but the relief from that overwhelming dread is gone.