New member to the 13'aires club

[brokegopher]

Well we officially file tomorrow. I'm upset with myself for getting here financially, but what a relief to see some sort of resolve to this mess. I hope our attorney did everything to get us a 7, he said we were a "luxury car payment" away.

So here we are filing 13, our initial plan is $260/month on $140k+ unsecured or 10-12cents on the dollar. Really good I assume, however this is including 401k contribuitions and cell phones which are disputable I guess......

Anyone have any ideas how "high" that $260 could climb? Also is there any benefits to this 13'aires club - in 8yrs is any creditor going to care I did a 13 over a 7?

[CATCHMEIFYOUCAN]

What does your actual schedule I and J state your disposable income would be? For example the means test proved I was negative -$60 while schedules I and J stated I actually had $800 disposable, in good faith my attorned proposed I pay $250 (since the Means Test was put in place by Congress to prove something) in the end it was just BS. The Trustee went after the $800.

Good Luck, Catchmeifyoucan

[Flamingo]

Well we officially file tomorrow. I'm upset with myself for getting here financially, but what a relief to see some sort of resolve to this mess. I hope our attorney did everything to get us a 7, he said we were a "luxury car payment" away.

So here we are filing 13, our initial plan is $260/month on $140k+ unsecured or 10-12cents on the dollar. Really good I assume, however this is including 401k contribuitions and cell phones which are disputable I guess......

Anyone have any ideas how "high" that $260 could climb? Also is there any benefits to this 13'aires club - in 8yrs is any creditor going to care I did a 13 over a 7?

As to your 401(k) contributions, there is a good possibility (depends on your trustee and district) that you will have to stop making them because you are saving money that is available to creditors. We had cancelled our cell phones prior to filing just because our income dropped tremendously and we had to cut everything/anything that was extra in our lives. Our attorney asked us at retention if we had cell phones because because it was almost guaranteed the trustee would want that monthly cash if you had a working house phone. That was how it was explained to us - others may have been able to keep them especially if they were associated with a business in any way or just able to keep them. Chapter 13 are famous for what one filer is able to do or keep, the other filer cannot do or keep.

[sunnysiderays]

As to your 401(k) contributions, there is a good possibility (depends on your trustee and district) that you will have to stop making them because you are saving money that is available to creditors. We had cancelled our cell phones prior to filing just because our income dropped tremendously and we had to cut everything/anything that was extra in our lives. Our attorney asked us at retention if we had cell phones because because it was almost guaranteed the trustee would want that monthly cash if you had a working house phone. That was how it was explained to us - others may have been able to keep them especially if they were associated with a business in any way or just able to keep them. Chapter 13 are famous for what one filer is able to do or keep, the other filer cannot do or keep.

I have 5 cell phones on a plan and the trustee never mentioned it. However I do not have a land line. Also I have a 401K, nothing was stated either if I can or can not contribute to it. As a matter of fact, I have alot of "grey" area in my Ch13 case. Tax refunds are even unclear. The trustee only ask if I get a tax return every year, but never told me they could take it from me if I did. I am taking one day at a time and giving what ever the trustee ask for and what is listed in my paperwork of do's and don't from the lawyer and trustee.

[bigalsbeans]

My payment went up by a little over $100, the issue was we tried to figure my disposable income with 2 401k loans being repaid, including one that was just about paid off. The trustee objected, so we had to use an average over 60 months. Payment is more than I would like, and money is tight, but it should be doable. What I am paying now is much less than I was paying each month in CC bills anyway!

Where I live, I was allowed to put 6% in my 401k without a problem. Plus I am repaying a loan as well that would add about 3%.

[lrprn]

So here we are filing 13, our initial plan is $260/month on $140k+ unsecured or 10-12cents on the dollar. Really good I assume, however this is including 401k contribuitions and cell phones which are disputable I guess......

Recent case law decisions have all been decided in the filer's favor that contributions to retirement may be continued during Ch 13, although the % allowed may be limited by local court custom. (For example, our retirement contributions are limited to a maximum of 5% each paycheck.)

Anyone have any ideas how "high" that $260 could climb?

It all really depends on how your trustee interprets what's on your Means Test and Schedules versus how your local and state bk courts have interpreted anything that's in question.

We have been allowed to keep making contributions to our 401K plans and also have cell phones in addition to a land line as well. It would be quite unusual for your trustee to deny either.

Also is there any benefits to this 13'aires club - in 8yrs is any creditor going to care I did a 13 over a 7?

Actually yes, it is easier to get good credit immediately out of Ch 13 because you have a three-to-five year history of solid ontime payments for everything you still have. Also a successfully completed Ch 13 drops off your credit history 7 years after filing where a Ch 7 doesn't drop off for 10 years after filing.

Creditors do like seeing that payment history, and it does help your credit scores recover by the time your Ch 13 ends, especially if you start correcting mistakes on your credit report about a year before your case is due to end.

The way I see it, Ch 13 isn't the end of the world. It sure beats the heck out of being in the horrible financial mess we were in before filng. Our phone isn't ringing constantly. We are able to save money if we're careful. We pay all our bills on time. We have peace of mind and a sense of hope now, and that's well worth five years in the end when there was no other option left.