I dont know what to do?

[Nicki8875]

After reading the posts chapter 13 really has me scared. I am concerned that the trustee owns us for 5 years. We need to do something and cant do a 7 for 2 more years, but we want to keep our home.

If we get dh another vehicle and give back his bronco our only secured debt is our house and our van. So will they set an amount we pay in to repay our unsecured? Will our van payment go down since we pay a high interest and owe more then it is worth?

Im sorry I have so many questions but my head is spinnin trying to figure all this out. And with a payroll deduction will it be from both of us? Dh works for a SMALL family owned company and does not want them to know about this at all.

Can someone kind of break it down for me what to really expect and what happens. What about tax refunds? What about our kids? In the next 5 years 2 of them will start driving. Can we get them cars/ can they buy their own since they have savings? Would we pay our household bills ourselves? (phone, electric, gas, etc) Or does the trustee do all of that too?

[optimistic1]

Thats alot of questions.

1. Dont be scared.
2. Your payment to unsecured is primarily based on your disposable income from the means test.
3. Most likely your van payment will decrease.
4. Tax refunds vary from state to state, some trustees take them, if yours does, you need to adjust your withholding w-4, to take home more pay rather than lend it to uncle sam at 0% interest.
5. Without trustee approval would you be able to buy new cars for your kids, most likely the answer will be no.
6. Yes your kids can simply buy their own.
7. Yes your household bills, like utilities and food, are paid for out of pocket.

For more info on the 13 process, check these links.

http://moranlaw.net/13workings.htm#Chapter%2013%20practice

http://www.abanet.org/publiced/practical/bankruptcy13_whatis.html

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter13.html

Your options could be to just stop paying on your credit cards, and wait it out to file a chapter 7, only if you qualify.

Again, is your income below or under the state median?

[EricaCallaha]

Take a deep breath.

The trustee doesn't own you but he is a big part of your life. Your cars will probably be rolled in. We have one car paid off and another with a loan. The car with a loan was rolled into our 13 payment. You pay all of your own utilities. Tax refunds depend on your trustee and state/district rules. I am in Utah and we are allowed to keep $1,000. The rest goes to the trustee and pays down the amount that we are putting toward the unsecured debt. An automatic payroll deduction depends on your trustee and state. Our state doesn't do a payroll deduction unless you prove that you cannot make your payments on time.

My best advice is to get a good attorney. Make sure that they have awesome paralegals. Make sure that they specialize in bankruptcy law. Go get as many free consultations from different attorneys until you find one you like. Then ask all of these questions to them. And keep asking all of the questions that you need to feel okay about your decision.

Good luck.

[Nicki8875]

Thats alot of questions.

1. Dont be scared.
2. Your payment to unsecured is primarily based on your disposable income from the means test.
3. Most likely your van payment will decrease.
4. Tax refunds vary from state to state, some trustees take them, if yours does, you need to adjust your withholding w-4, to take home more pay rather than lend it to uncle sam at 0% interest.
5. Without trustee approval would you be able to buy new cars for your kids, most likely the answer will be no.
6. Yes your kids can simply buy their own.
7. Yes your household bills, like utilities and food, are paid for out of pocket.

For more info on the 13 process, check these links.

http://moranlaw.net/13workings.htm#Chapter%2013%20practice

http://www.abanet.org/publiced/practical/bankruptcy13_whatis.html

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter13.html

Your options could be to just stop paying on your credit cards, and wait it out to file a chapter 7, only if you qualify.

Again, is your income below or under the state median?

Thank you for that information. When I did the means test it said we could file 7 or 13 and were below the state median, although our income was hiher but I guess they factor other things into it? Thank you for those links, I am going to study them today. I am in TN and in our area there is only 1 atty that does bankruptcy. But I am going to go to some big towns around us b/c I want more then one opinion.

[Nicki8875]

Take a deep breath.

The trustee doesn't own you but he is a big part of your life. Your cars will probably be rolled in. We have one car paid off and another with a loan. The car with a loan was rolled into our 13 payment. You pay all of your own utilities. Tax refunds depend on your trustee and state/district rules. I am in Utah and we are allowed to keep $1,000. The rest goes to the trustee and pays down the amount that we are putting toward the unsecured debt. An automatic payroll deduction depends on your trustee and state. Our state doesn't do a payroll deduction unless you prove that you cannot make your payments on time.

My best advice is to get a good attorney. Make sure that they have awesome paralegals. Make sure that they specialize in bankruptcy law. Go get as many free consultations from different attorneys until you find one you like. Then ask all of these questions to them. And keep asking all of the questions that you need to feel okay about your decision.

Good luck.

We are in TN. The biggest thing in the payroll deduction to dh. If we can pay in I dont think this will be an issue or even have it just taken out of my check. My boss already knows I am considering this and it is not an issue to me.

Where can I find out if TN does payroll deductions and if they take our tax refunds?

[Flamingo]

We are in TN. The biggest thing in the payroll deduction to dh. If we can pay in I dont think this will be an issue or even have it just taken out of my check. My boss already knows I am considering this and it is not an issue to me.

Where can I find out if TN does payroll deductions and if they take our tax refunds?

Nicki...go to the TN State website. See if there are any links to the BK Court in your District. Many BK courts have tons of information online as to requirements. Many states require payroll deductions but that does not mean you may be able to pay it outside of your Plan if your attorney requests the Trustee for that to occur. Our state requires it but we paid outside of our Plan because I started a new job the day after our 341 hearing and I did not want a possible impact on my new position with having to request a 5 year Chapter 13 wage withholding. There is where it pays to have a good attorney. We obtained our attorney via a referral by a former boss of mine (also an attorney) so we got one of the best in our state. If you are in doubt about obtaining an attorney, call your State Bar Association (look in your State section of your phone book), tell them you are considering filing bankruptcy and would like the names of several reputable, good, top BK attorneys in or around your area (closest big city). That would be a good start for you and well worth the effort. Best of luck to you.

[Nicki8875]

Nicki...go to the TN State website. See if there are any links to the BK Court in your District. Many BK courts have tons of information online as to requirements. Many states require payroll deductions but that does not mean you may be able to pay it outside of your Plan if your attorney requests the Trustee for that to occur. Our state requires it but we paid outside of our Plan because I started a new job the day after our 341 hearing and I did not want a possible impact on my new position with having to request a 5 year Chapter 13 wage withholding. There is where it pays to have a good attorney. We obtained our attorney via a referral by a former boss of mine (also an attorney) so we got one of the best in our state. If you are in doubt about obtaining an attorney, call your State Bar Association (look in your State section of your phone book), tell them you are considering filing bankruptcy and would like the names of several reputable, good, top BK attorneys in or around your area (closest big city). That would be a good start for you and well worth the effort. Best of luck to you.

Do you have a link for the TN site? I cant find anything!

[optimistic1]

East District

http://www.tneb.uscourts.gov/php/index.php

Middle District

http://www2.tnmb.uscourts.gov/

West District

http://www.tnwb.uscourts.gov/

You are going to need to figure out which applies to you, dependent upon where you live of course.