What would happen?

[calderon]

I'm in Chapter 13 and I received my Annual Report from the Trustee's office. My confirmed base amount was $43,200.00. I've paid $6037.50 which went to my VW (secured) and to the Attorney which was $2564 (that hurts). I'm disqusted that I had to pay that much to the attorney and I can't ever great a hold of anyone...."we're here for you" they said. I feel like I'm driving in the dark with my life on the hood. Anyways, back to #'s. The remaining balance due on my 'base amount' is $37,162 though my 'claimed amount' is $24,895 (is that what I owe or is it $37) UGH

Anyways, what if I wanted out of chapter 13 and just walked away from everything. I would keep my VW and hopefully arrange payback with VW credit. I just feel like I'm still sufficating and have no room. My mom has been laid off for almost a year and I really need to help her, but I'm strapped too. My husband and I both have unstable jobs in this economy. I have 3 family members who are laid off. I know I'm not the only one out there. I just worry about my 2 year old son.

My credit is already ruined right? I know phone calls would start back up. I just don't know what to do. What if I have to put my mom as a dependant after her unemployement runs out? Could I then change over to chapter 7?

Oh...just worried I guess. DEEP BREATH!

[lrprn]

My credit is already ruined right? I know phone calls would start back up. I just don't know what to do.

Yes, once you file bk, even if you voluntariliy dismiss the Ch 13, your credit will still be in the toilet for a long time. And yes, your creditors are going to come roaring back with a vengeance also piling on late fees and overcharges which is going to significantly increase what you owe right now.

What if I have to put my mom as a dependant after her unemployement runs out? Could I then change over to chapter 7?

Any time your finances change permanently, your lawyer can file an amended Ch 13 plan or recalculate everything to see if you can convert to Ch 7.

If you can't get your lawyer to contact you, call the office and set up an appointment to talk face to face.

Oh...just worried I guess. DEEP BREATH!

Worry is normal. Only if it overwhelms you and leads you to do something impulsive like pulling out of an active Ch 13 when it very likely isn't necessary is worry not your friend.

If your circumstances have permanently changed after you filed two years ago, then it's time to corral your lawyer and see if your status has changed. You may be able to reduce your monthly payment or even convert. But guessing about it isn't going to answer your questions accurately. Make an appointment to go into the office and talk with your lawyer very soon. Good luck!

[Flamingo]

I'm in Chapter 13 and I received my Annual Report from the Trustee's office. My confirmed base amount was $43,200.00. I've paid $6037.50 which went to my VW (secured) and to the Attorney which was $2564 (that hurts). I'm disqusted that I had to pay that much to the attorney and I can't ever great a hold of anyone...."we're here for you" they said. I feel like I'm driving in the dark with my life on the hood. Anyways, back to #'s. The remaining balance due on my 'base amount' is $37,162 though my 'claimed amount' is $24,895 (is that what I owe or is it $37) UGH

A lawyer fee of $2564 to represent you from the day you file until the day you are discharged in a Chapter 13 (3 to 5 years) is not bad when you consider all the work done for you and court appearances, documents, staff work, etc., when most lawyers charge over $150 per hour. A Chapter 13 encompasses a lot of work as anyone who has filed one pro se would easly back up. When your Plan was confirmed, it was based on your financial situation at the time you filed. Circumstances can and do change as the years go by as income may decline or rise or a job may be lost or hours cut. When you feel you cannot make your Plan payment or think you may be late on other bills and there is a big change in finances, your Plan can be modified.

Anyways, what if I wanted out of chapter 13 and just walked away from everything. I would keep my VW and hopefully arrange payback with VW credit. I just feel like I'm still sufficating and have no room. My mom has been laid off for almost a year and I really need to help her, but I'm strapped too. My husband and I both have unstable jobs in this economy. I have 3 family members who are laid off. I know I'm not the only one out there. I just worry about my 2 year old son.

If you walked out of your Chapter 13 right now it would be dismissed and you would be back to square one and fair game for all creditors listed in your filing and all interest and penalties would be added back into the amounts you will owe after subtracting what you paid to them via your Plan. It is probably the worst thing you could do and it would wreck your credit badly as you would have a Chapter 13 filing on your credit reports, then a dismissal and then creditors wreaking havoc with late/nonpayments on your reports thereafter. If you continue with your plan, the Chapter 13 will remain on your reports for 7 years from your filing date. If you dismiss, you will still have that Chapter 13 showing even though you are not in it anymore and the creditors will start listing as of new dates extending your issues even more on your credit. Again, if you feel you are having difficulty making payments, contact your attorney to investigate a possible modification.

My credit is already ruined right? I know phone calls would start back up. I just don't know what to do. What if I have to put my mom as a dependant after her unemployement runs out? Could I then change over to chapter 7?

Oh...just worried I guess. DEEP BREATH!

If you provide more than half of your mother's support, you can investigate adding her as a dependent. Depending on your financial situation and what I state above, you would need to work with your Chapter 13 attorney to see if you can modify your plan or convert to a Chapter 7.

[cindy02]

Calderon, I filled chapter 13 back in april/07 paid my attorney $1800, kept making payments and when I received my annual statment I've noticed that my attorney got paid $2400 more. I was so upset, I stoped maiking payments.
We walked away from our house and we plan to refile 7.

[Flamingo]

Calderon, I filled chapter 13 back in april/07 paid my attorney $1800, kept making payments and when I received my annual statment I've noticed that my attorney got paid $2400 more. I was so upset, I stoped maiking payments.
We walked away from our house and we plan to refile 7.

Was the $2400 for the Trustee's fee to that point? Our Trustee's fee was 9% of our total plan and was taken out on a monthly basis. Was $1800 your attorney's total fee? Your attorney could not have been paid more unless you had attorney's fees included in your Plan payment and you would have all that on your original confirmed paperwork. I find it hard to believe you would pay your attorney $4200 for your Chapter 13 unless that was an agreed upon fee for a complicated Chapter 13.

[cindy02]

Flamingo,

My attorney told me the fees were $1800 to file chapter 13. When we got to his office to sign the paperwork I realized that the trustee was going get paid %9 and my attorney another $4200. I got upset and asked him why he never told me about the $4200 and his response was (the fee is mandatory by the court). We let it go and singed the paperwork because we tough that he would get paid the $4200 troughout the 5 years but instead he was the first one to get paid before even the IRS or my mortgage company. We had our case dismissed because we tough it was a joke.

[Flamingo]

Flamingo,

My attorney told me the fees were $1800 to file chapter 13. When we got to his office to sign the paperwork I realized that the trustee was going get paid %9 and my attorney another $4200. I got upset and asked him why he never told me about the $4200 and his response was (the fee is mandatory by the court). We let it go and singed the paperwork because we tough that he would get paid the $4200 troughout the 5 years but instead he was the first one to get paid before even the IRS or my mortgage company. We had our case dismissed because we tough it was a joke.

The attorney and other priority creditors are always paid first in a Chapter 13 Plan. We had attorneys fees in ours also and they were paid first. All other creditors follow and get paid during the course of your Plan and all creditors are aware of how that works and have copies of your filing. The $1800 he quoted you was probably for a basic Chapter 13 plan. Some are complicated and can cost more. That $4200 you agreed upon also included your court filing fee. It's a shame you dismissed your Plan because you thought it was a joke. It just puts you right back at square one before you filed and it is the worst thing that you can allow to occur and you will have the Chapter 13 on your credit records for 7 years from the filing date even though are are not in it anymore. It's a shame you just didn't realize how the Plan worked. Best of luck to you...