Vacation??

[2muchinDebt]

This may be a dumb question and I do not want to get scrutinized..can you take a vacation during the 5 yr payment plan for a CH13? I ask because..we have a timeshare (paid for) and we have several gift cards given to us a gifts for gas and places to eat. The only thing we would pay for is food and since it is a villa with full kitchen I could use that weeks grocery $$ and use it or food there. If we didn't have the gift cards we wouldn't be thinking of it. And of course, if we must sell the timeshare it's out of the question anyway. Our time share is all we have left besides the house and I would like to hang on to both. We can afford the house payment and theTS is paid. I am sure that it's wishful thinking on my part. Giving up the TS would be like giving up the memories.We don't want to get in trouble though. Haven't filed yet. Waiting until end of Feb or sometime in March.

[BigJohn]

How much is the Time Share worth? (Note: not how much you paid for it).

[Flamingo]

Since you have not filed yet (if you actually can), you may be putting the cart before the horse. Your timeshare is an asset and that is why BigJohn asked its value. What you want to do and what you can or will be able to do are two different things. Major lifestyle changes usually accompany a Chapter 13 and I would not plan on anything at this point until after you know what will be going on as to your situation. We did not go on any long vacations during our Chapter 13 but were lucky in that we have friends who own a beach house and we were able to spend several weekends now and then during the summer months at no cost to us, except maybe pitching in to help with laundry, some groceries, etc. The beach house for us is within driving distance. If we had to fly, we could not have done it. You may have to refigure things after you file.

[2muchinDebt]

I am pretty sure it is worth what we paid for it $14000 because on the resale market that's the lowest price it's going for and Disney itself is selling it for over $100 per point. We paid $82/pt 6 yrs ago. I believe we can use an exemption on it since our house is upside down. But if not, then it goes to the trustee. We do have another smaller timeshare that we still owe on. The payment is $60/mo and I am not sure what will become of that..whether they will let us keep that payment or include it in the BK.

I think my DH may be in line for a promotion in the next year or two, but of course you can't bank on that. Should he get one and say a $4,000/yr raise to go with that, can they BK get paid off earlier if the payments are raised?

[Flamingo]

I am pretty sure it is worth what we paid for it $14000 because on the resale market that's the lowest price it's going for and Disney itself is selling it for over $100 per point. We paid $82/pt 6 yrs ago. I believe we can use an exemption on it since our house is upside down. But if not, then it goes to the trustee. We do have another smaller timeshare that we still owe on. The payment is $60/mo and I am not sure what will become of that..whether they will let us keep that payment or include it in the BK.

I think my DH may be in line for a promotion in the next year or two, but of course you can't bank on that. Should he get one and say a $4,000/yr raise to go with that, can they BK get paid off earlier if the payments are raised?

As to your last paragraph, when you file Chapter 13, your Plan is based on what your situation is at that time, not at any time in the future. If income rises (or falls) during that time, you need to contact your attorney as to what needs to be done, if anything, as to your particular situation. Sending in extra money with plan payments will not pay off your plan earlier (a Chapter 13 Plan is not run like a credit card). What you need to do is educate yourself as to a Chapter 13. If you have not yet already done so, please view the Stickys in the Chapter 13 forum which can help you with a lot of your questions.

[2muchinDebt]

Since you have not filed yet (if you actually can), you may be putting the cart before the horse. Your timeshare is an asset and that is why BigJohn asked its value. What you want to do and what you can or will be able to do are two different things. Major lifestyle changes usually accompany a Chapter 13 and I would not plan on anything at this point until after you know what will be going on as to your situation. We did not go on any long vacations during our Chapter 13 but were lucky in that we have friends who own a beach house and we were able to spend several weekends now and then during the summer months at no cost to us, except maybe pitching in to help with laundry, some groceries, etc. The beach house for us is within driving distance. If we had to fly, we could not have done it. You may have to refigure things after you file.

We wouldn't fly. Couldn't too pricey. If we get to exempt it the costs would gas to get there and food. (Theme park tickets were bought awhile ago and have been streching them out over a few years) The weeks grocery $$ would take care of the food. So gas would be the only cost really.

We have already made major lifestyle changes and to be honest it hasn't been that bad. We are staying in more often, eat out once a week and with a coupon and cheaper places, been clipping coupons, stopped using credit cards a few months ago, changing some bills around for cheaper prices, making grocery lists and planning dinners ahead of time, saying "No" more often, plus I am open to any other budgeting tips anyone else may have!

I would rather major pinch pennies all year so we can have that one week off together. Some people would rather have nice clothes, nice cars, etc. I'd rather we have our yearly vacation, HOWEVER, I do know that if it is not something we can do and it would interfere with daily life costs or make a deeper debt than we wouldn't do it. We defintely need to see after we file how it will work or even if at all. If I can find a job things will be much better and if DH gets a promotion (which is pretty likely but we can't bank on that) will be even better, but until that happens nothing is certain..except the BK.

I appreciate all the help and advice I find on these boards. So thank you to all.

[2muchinDebt]

As to your last paragraph, when you file Chapter 13, your Plan is based on what your situation is at that time, not at any time in the future. If income rises (or falls) during that time, you need to contact your attorney as to what needs to be done, if anything, as to your particular situation. Sending in extra money with plan payments will not pay off your plan earlier (a Chapter 13 Plan is not run like a credit card). What you need to do is educate yourself as to a Chapter 13. If you have not yet already done so, please view the Stickys in the Chapter 13 forum which can help you with a lot of your questions.

I knew you had to let the attny know when you got raises or more $$ wasn't sure you couldn't pay more towards the debt. I will have to revisit that CH 13 sticky section.

[njguy1972]

Based on what I have read on this board, if you get raises and your income rises, your trustee may adjust your plan.

I think they review your tax returns each year and can adjust your payments up if income significantly rises.

As for early payoff, it also sounds like (from other posts) that unless you are paying off 100% of your unsecured debts, you probably cannot pay it off early.

If you have a 100% payback and they take tax refunds, that may shorten your time to payback.

Also- with timeshares, they are an asset. Even with an upside down house, you may be required to sell them off to pay back some of the unsecured debt. I assume your unsecured debt is more than the value of the time shares.