Still in shock with ???

[bkrelief22]

After being forced into ch13 I am still in shock...got our copy to take home after filing....realized that there's no leeway for any Xmas gifts for our kids or grandkids, plus our perscriptions will go up $50 the first of the year.

We were so sure we were Ch 7...passed the means etc...what it got us was a 3 year lan instead of 5...we pay our car payment(which was current) within the plan.

I guess my question is...can this be amended before the 341 and if so would it be a good idea??? Thanks in advance...I'm freaking out as to how we're going to manage this...I have alot of dental work that has to be dones, etc.

Thanks so much everyone!!

bk22

[rrockinggramma]

Tight budgets are the norm in a chapter 13. Down the road you can request to modify the plan if something major occurs. But money for Xmas gifts isn't one of those unfortunately.

Lifestyle adjustments are indeed eye openers but are necessary if the plan is to be successful. And sometimes dental work will have to be done a little at a time etc.

You will find a way if you really want your chapter 13 to succeed.

[AngelinaCatHub]

If what I read, I understand, you said you did meet the means test? Understand, the lawyer makes a little more on a 13, and a 7 is easier and final. I would in my opinion go to your lawyer and ask, insist, and prove to you, you cannot do a 7 and get out of your life’s problems into a new start. Not to say, your lawyer isn’t just great, but he works for who? No, wrong. Himself. If you passed the means for 7, amend real soon. ONLY MY OPINION. ‘Hub

[Flamingo]

The new bankruptcy law that took effect in 10/05 is designed to make more people pay back their debts; therefore, that means more people end up filing Chapter 13s instead of 7s. The changes made it much more difficult to file for a Chapter 7 as filing abuse was rampant prior to the new law. Those that abused the system just made it much more harder and expensive for those that really need to file. There are reasons why you had to file a Chapter 13. If you have not filed yet and just got the paperwork, by all means get another opinion from another attorney if you are not satisfied.

During a Chapter 13, forget about giving Christmas gifts as friends/family will understand. There are ways to save on the side for those items so you will need to learn to make a budget and stick with it. Credit is no longer available with either BK after you file so learning to plan a budget really can get you through but you have to stick to it. You mention future dental work, etc. Any bills incurred after your filing are your own responsibility and if they are high, many dentists will help you out with a payment plan. Everyone's health and other insurances will rise this coming year which is difficult for anyone on a fixed income, in a Chapter 13 or living paycheck to paycheck. You will have to find a way to cut corners to afford those increases or if they are too high and you have to struggle terribly, your Plan can be modified.

Best of luck to you - no one said filing BK was easy as many find out.

[bkrelief22]

Thanks for your help...yes Hub we did pass the means test. Our only income is my hubby's retirement and My soc.sec. disability. So. our disposable income comes from my soc. sec. which I thought was exempt. When I questioned the lawyer about SS being exempt...he said it was disposable income and didn't matter. I understand hubbys retirement is exempt but counted as income, but I thought the soc. sec couldn't be taken to use as disposable income.

I do understand the budgeting aspect of all this. Had we known ahead we were ch13, I would have planned differently...however up to day of filing they said ch 7. So once again...I learn.

Thanks again all, it helps to talk, vent, etc. I realize I am responsible for this mess so I will get myself out of it!

Appreciate all of you

bk22

[ssdsco]

what it got us was a 3 year lan instead of 5...

Could you give us more details ? You passed the means test which included both the retirment income and SS but after expenses showed enough disposable income to fund a BK 13 ?

Thanks

[parsoc48]

Yes, I'm curious about this too...I thought it was pretty simple, you either passed the means test for a 7 or you didn't.....Have you inquired of other attorneys?Let us know

[NowImDownInIt]

Yes, I'm curious about this too...I thought it was pretty simple, you either passed the means test for a 7 or you didn't.....Have you inquired of other attorneys?Let us know

Not necessarily true.. I passed the means test, but had enough disposable income to fund a 13, therefore I am now in a 36 month ch 13...

NIDII

[ssdsco]

Not necessarily true.. I passed the means test, but had enough disposable income to fund a 13, therefore I am now in a 36 month ch 13...

NIDII

In hindsight with some planning coud you have avoided having enough disposable income to fund the 13 ? Nicer place to live, nicer car, claim higher living expenses ?

[bkrelief22]

I'm like NIDII...passed the means but enough disposable income that it pushed me into 13. I thought that SOC sec. could not be taken to use as disposable income because it is exempt...but it doesn't matter. As far as having a nicer place to live, etc...it's still based on the area you live in and what they allow for that. You can't rent a place for too much and then go file bk...talking about raising a red flag. They will only allow so much for living expenses...our attny raised our elec b/c of winter, even raised our recreation but said on some things they will only allow so much...

So...it is what it is....thanks again for all the responses...it just helps to talk it out.

You guys are the best!

bk22

[ready2puke]

Can you get your dentist to put you on a payment plan like NOW????That way you can get your teeth fixed and the extra expense maybe would put you in a 7??? Just a thought here

[ssdsco]

[bkrelief22]

I'm going to look at the dentist...etc and see what I can do...341 is in Dec. so we'll see what happens...thanks everyone
bk22

[NowImDownInIt]

In hindsight with some planning coud you have avoided having enough disposable income to fund the 13 ? Nicer place to live, nicer car, claim higher living expenses ?

My expenses were very bumped up as it is... Which is surprising, considering that I pay $700 in day care alone monthly. The only reason I passed the means test was because I had been unemployed for 2 months in the 6 months of pay stubs. My bring home is substantially more than the average of the 6 months prior to my filing. Besides... I'm in debt as it is, why would I want a more expensive car/nicer place to live at this point?

[albacore44]

Yes, that is an interesting question. Lets say you have a very high house payment and 2 large car payments. all are secured debts, and you are paying on time. You have no equity in any of them (upside down etc.) so they are exempt. You plan to keep them all. your income is too high so you fail part 1 of the means test, but since your expenses are high, you have no disposable income, in fact negative by a couple of hunderd dollars. Can they force you to sell your house/cars/etc. thereby giving you disposable income so you are forced into a Ch 13 ??