Savings

[broncho14]

Hello, I am a first time poster but a long time viewer of this site. I was wondering what % of the money that I have left should go to savings each month. When I filed Chapter 13 in June I had $64 in my checking account and $224 in savings. I know have $150 in checking (after bills for this half of the month) and $900 in savings. I am trying to put between $150 and $200 in savings per month but it has not always worked out that way. I pay the trustee $450 twice a month for 60 months and my car is included. That leaves me with just under $2,000 a month to operate on. That sounds like a lot but I have rent, utilities, etc, as well as two retirement loans that I have to pay back outside the plan or the withdrawls become taxable income. I am still learning the mechanics of the budget and I am willing to learn from anybody's experiences. I am a better person for doing this.

[parsoc48]

Broncho,
Welcome to the site, I know you'll gain a lot of knowledge...and make friends in the process.
Budgeting is so important..and I haven't learned how yet! CC trouble was one thing, but worse was misusing all that disposable income.
If you can sock $$$ away like you've been doing you're very lucky...I'm nowhere close to that "emergency fund".
Good luck!

[justbroke]

I am extremely proud that you have been able to save already. I seem to keep having emergencies, and haven't been able to build a good savings. I would suspect, that any person should keep 6 months worth of living expenses in a savings account... just in case.

Very nice to hear that you're doing okay.

Welcome to Club 13.

[Flamingo]

There is no set percentage as to any amount of money you can save in a Chapter 13. You save what you can during your Plan by either cutting back as much as you can and saving it for expenses that will arise during your Plan (i.e., major car repairs, new tires, if you have a house - house repairs, broken dishwasher, etc., etc.). Sometimes two will hit at once as we had some major car repairs followed two weeks later by a broken water heater - that almost did us in and we had to contact our attorney who contacted the Trustee who let us skip a payment to pay $500 for a new water heater and installation. The car repairs prior to that were $650. We had the savings for the car repair but not the water heater. So you can see what can happen especially since you do not now have a credit card or open line of credit to draw funds from.

It is difficult to save in a Chapter 13; keep it up and best of luck to you!

[broncho14]

I know that they do not give you a Percentage in your plan. I was just trying to find out what people were able to do in a practical sense. My attorney thinks that is a problem in the law that could be ammended. I am not holding my breath. My attorney was really good. I went to an attorney who handles bankruptcy, but that is only part of his practice. I was the only one he represented at the 341 meeting that day. I saw two attorneys represent 12 different people that day!!!!The Trustee wanted me to pay $1175 a month but my attorney was able to negotiate it down to $900. That has really helped but money is still tight. By the way, just to let you know, I got into this position because 1. My father got ill and he did not have long term health insurance and 2. I developed a gambling addiction after my father became ill (trying to make up for money I was having to spend to help my mother out wih his care before he passed away). I am proud to say that I have not gambled since July. Life is much beter now, even though I am in a bankruptcy. Thank you for your advice.

[epiphany]

Bravo B14 on not gambling since July! That is wonderful and you should be proud.

If you can share any tips to others here who share the addiction, I am sure it would be greatly appreciated...they are a few here who have voiced their addiction and probably more that are lurking.

Best of luck to you,

ep

[liz417]

Congrats B14 on your decision to quit gambling! Be strong because you are on the right path now.

Sorry about your father passing.

[broncho14]

I stopped gambling after my 341. I saw what it had done to so many people in that room. I was in a lot better shape than they were in and I was in pretty bad shape. I have tried counseling but that did not help. The thing that helped me the most was seeing the lives ruined by gambling. I made a decision that I might be bankrupt in a financial sense but I was no longer going to be bankrupt in a life sense. I can only promise one day at a time. I will not gamble today.

[mmenz22779]

bronco you said you had to pay your 401k loans out side of the plan

why?

why did they not include them against your disposable income?

Did the trustee do something different?

[broncho14]

It was a variable annuity and my attorney asked to keep it out of the plan. The two payments are roughly a combined $180 a month. The trustee allowed it and that is what we are doing. I am not sure of the legailities but I will try to find out. My attorney is very good with returning phone calls, e-mails, etc.

[mmenz22779]

ok if it was NOT a Qualified retirement account then that makes sense. If it WAS then it still does not make sense

[broncho14]

I am thinking it must not have been a qualified account. I really do not know but I am trying to learn as much about this as possible. I think the more that I know the less inclined I will be to repeat the same mistakes that got me here in the first place.

[mmenz22779]

most variable annuity are not a qualified account, yes they are a retirement account but not qualified and that makes total sense.

401k, 457k, 403, IRA, SSI are qualified accounts

[mmenz22779]

Learn as much as you can don't depend on a lawyer for all the answers or you will set your self up.

JMHO

[broncho14]

I understand.