OMG Lawyer Problems. Please Help!!!!

[abouttofile]

I don't even know where to start. I met with a lawyer for initial consultation to file Ch13. I brought all the paperwork needed with me since I was about 90% sure I was going to file. The lawyer said my payment would be about $800.00 a month plus my current mortgage payment. I own my house but my boyfriend lives with me. He said the court would want to see his income too even though we are unmarried. I gave the lawyer all my boyfriends information too before he said what he estimated my payment would be. He also stated that my car was a buy/lease (NY didn't technically have leasing when I got my car) and that he could work that in so I could avoid turning it in. This initial meeting was December 4th. I paid the retainer and have been waiting impatiently ever since to hear anything from them. Today I finally received a letter from the lawyer's office stating that based on the information I've given them they estimate my payment to be $1500.00 a month. I am at a total loss. $1500.00 plus what other bills I would have mortgage ($800.00), insurance ($80.00) would leave me less than $200 a month for food, clothes, gasoline, pet bills, and all the other things people spend money on. On top of it leaving me pretty much negative every month I think it might even work out to more than what I actually owe (1500x60 months is $90000, I owe about $55000 in unsecured and my car would be about $10 000). My boyfriends income is about $400 a week take home. He pays our utilities, has credit cards and student loans himself as well as medical expenses and basically he has about $100-$200 left a month. Additionally since I didn't think it would take this long I stopped paying the credit card companies and now I don't think I can back out of this because there's no way I could catch up now. And to further stress me out my buy/lease is up April 9th. Does this sound right to anyone? It's not like I thought I would end up with loads of extra spending money but what about things like oil changes, inspections, clothing, home repairs etc. Is there any way the mortgage payment could be included in that number? I will call them tomorrow bbut I never get past secretaries who always say they don't know anything. Also is it normal for a Ch 13 to take this long to be filed? Do I have time to see another lawyer? Sorry this is so long I really think I'm going to have a breakdown!

[Flamingo]

You first need to educate yourself a little about Chapter 13; take a few minutes and go through the "Stickys" in the Chapter 13 forum. If you did not file Bk, you would be paying so much interest on those debts it would make what you owe now double in less time than you would pay it off for less in a Chapter 13. As to your payment situation, it appears your attorney added in your car, factered in your live-in boyfriend's income and also added in the trustee fee (usually is around 10% of the total of your Plan). You may have to face the fact that you may not be able to afford to keep your house.

[BnkrptcyLwyr]

You first need to educate yourself a little about Chapter 13 ... You may have to face the fact that you may not be able to afford to keep your house.

In my experience, people think that bankruptcy is about "saving my house."

It is not.

It is about reworking your finances.

People come to me and say ... "I need to keep my house ... oh yeah, and I need to keep my car, because my wife really like that car, and yeah, I know it's a $600/month payment, but she would just die if we had to give up that car ... and oh yeah, that timeshare ... that was supposed to be our retirement home ... and I just can't give up the Harley, that's my baby ...."

Me: "But you only have $3,000/month to work with and you have a kid and a wife who need to eat ... and with just the basics, you're barely break even, something has to go. You have enough money to buy a used car outright, and you don't really need the Harley."

Them .... "But, but, but ... you don't understand ... we just have to keep everything, I mean, I really like that car."

Me: "But you can't even afford to eat, and they're shutting off the utilities."

Them .... "But, but, but ... "

Yes, that is really what some of my clients are like. Keep my stuff, even though it's killing them.

Again, it is NOT about keeping your stuff ... especially if you're making the kids suffer because you just can't lower your standards down to your income level.

[optimistic1]

I dont understand, you stated above that your attorney told you, your payment would be $800 plus your mortgage payment. And you then state that your mortgage payment is $800 as well. $800 + $800 is roughly $1500, the same amount the attorneys office told you you would be paying.

[sassiebaz]

YEah, it took me awhile to realize we could NOT afford this nice SUV that we bought just a year ago. We never thought we'd be in this position but we are. I then, had to talk my hubby into giving back the SUV. I told him I was no longer willing to work for daycare and my car. So, although I've stopped paying the car note and am still driving it, we are onto plan B. I've asked family to co-sign for an inexpensive smaller vehicle and if that goes nowhere then we will buy a small car for cash. You really do have to re-work your finances. These nice material things can come down the road.

[abouttofile]

in response to replies

Hi I guess the people who've replied have misunderstood the main idea of my problem (probably because my post was so long!).

When I first met with the attorney and gave him all the info he said my payment would be around $800 a month now he is saying double that figure. Is that normal or is that shady. Meaning if he would have said I would have been paying $1500 I would have walked because at the time I was not paying that amount (nor required to) to my creditors. Nothing has changed from that initial meeting to today.

I stopped paying my bills based on their advice to make sure I had enough to send in the payments with the filing and was given the impression that it wouldn't be long before the filing occurred (that was on Dec 4th and according to the letter today they are beginning to "prepare my filing" now)

Because of them telling me that, I don't know how I would be able to catch up with my creditors since I am now almost 3 months behind. I'm not trying to keep an expensive car or large house. I acted based upon the attorney's advice. I was feeling overwhelmed and felt I was one bad event away from catastrophe and was tired of living like this which is why I met with the attorney and they presented me with a proposed scenario that sounded like a way out and a way back to a normal life, instead its now turning into a financial disaster.

What I don't understand is that I hear about people filing bankruptcy keeping their house and car and only paying back a percentage to creditors but yet my lawyer seems to be proposing I pay back 100% with significant interest. Also although this may seem shady on my part can I just not say anything about my boyfriend? We're not married he could leave tomorrow.

[optimistic1]

YEah, it took me awhile to realize we could NOT afford this nice SUV that we bought just a year ago. We never thought we'd be in this position but we are. I then, had to talk my hubby into giving back the SUV. I told him I was no longer willing to work for daycare and my car. So, although I've stopped paying the car note and am still driving it, we are onto plan B. I've asked family to co-sign for an inexpensive smaller vehicle and if that goes nowhere then we will buy a small car for cash. You really do have to re-work your finances. These nice material things can come down the road.

I'm proud of you for having to suck it up, and let go of it. I know that if push comes to shove, as much as we like our house, we will let it go, and it will hurt, but its not the end of the world.

[Flamingo]

While you give a lot of details about your situation, there are no details as to all the amounts and debts you actually provided your attorney and your income/asset details so it is difficult to figure out what occurred as to the amount of the payment. You need to obtain a copy of your paperwork and go over it to see what is going on and ask your attorney what caused the jump in the amount.

[AngelinaCatHub]

In my experience, people think that bankruptcy is about "saving my house."

It is not.

It is about reworking your finances.

People come to me and say ... "I need to keep my house ... oh yeah, and I need to keep my car, because my wife really like that car, and yeah, I know it's a $600/month payment, but she would just die if we had to give up that car ... and oh yeah, that timeshare ... that was supposed to be our retirement home ... and I just can't give up the Harley, that's my baby ...."

Me: "But you only have $3,000/month to work with and you have a kid and a wife who need to eat ... and with just the basics, you're barely break even, something has to go. You have enough money to buy a used car outright, and you don't really need the Harley."

Them .... "But, but, but ... you don't understand ... we just have to keep everything, I mean, I really like that car."

Me: "But you can't even afford to eat, and they're shutting off the utilities."

Them .... "But, but, but ... "

Yes, that is really what some of my clients are like. Keep my stuff, even though it's killing them.

Again, it is NOT about keeping your stuff ... especially if you're making the kids suffer because you just can't lower your standards down to your income level.

[lrprn]

Hi I guess the people who've replied have misunderstood the main idea of my problem (probably because my post was so long!)

Actually it's because it's so difficult to read a solid, very long block of continuous text. Paragraphs are your friend when making a long post - I added some to your second post so you could see how much easier it is to read it. Also you are very likely to get more member responses the easier to read your posts are.

Hang in there - we want to help, so it helps us help you if you make it easier to get to the information needed to reply.

[EricaCallaha]

When we initially met with our attorney, we thought the payment would be about $250 a month. We were so relieved. We could live with that. Then we turned in our paperwork to start to run the numbers. Well then we came up to $400 because my husband received some bonuses. Then the attorney said that we needed to put our car in. So now the payment is up to $759. When we signed, I almost had a heart attack. But I couldn't argue with the numbers. When they propose the budget and show you where the numbers came from...it all added up.

Ask to see your paperwork. Make them show you where the numbers are coming from. See if your boyfriend's income is in the picture. Make sure that they are giving you enough of an allowance for food, gas, utilities, etc. If it still doesn't add up, get a new attorney.

Good luck and remember to breathe.

[BigJohn]

At first, I thought you were talking about my Father. He to, was a hobo during the Depression. He got to see every State but one or two.


I just started to appreciate the various bags of cement, mortar, grout, etc. I keep around the home. When I feel I need to do some work, I start mixing. My current project is making the outside cement block walls as smooth as sheetrock. Some might ask why do such a stupid thing, but I look at it as bringing back a lost art. I probably will cut some tile and include some inlay work. Why not?