CH 13 - Building a little cushion

[ameangreenbe]

I see that a primary concern of CH 13 filers is unexpected expenses, e.g., car repairs, medical expenses, etc. Ideally, one would like to have a little cushion to handle these events so that the plan could be maintained.

I've seen the following strategies posted. What others have been used. (The assumption here is that one is doing these 6 months in advance of filing to build a history). All of these can be adjusted if needed at the individual's discretion providing a cushion for a month if needed.

Are such strategies legal, acceptable by trustees?

- Contribute maximum to 401K
- Max out charitable contributions
- Change federal tax withholding deductions to zero
- Take out a term life policy that could be canceled later
- Schedule regular medical appointments (chiropractor)

Thanks all!

[woeisme]

Biggest way to get cushion, get a good lawyer who will fight for the max for you. That and/or pray for a nice trustee...

[EricaCallaha]

You can contribute the maximum to your 401k and change your withholdings. Go to the doctor like you normally would. The other stuff is dependent on your trustee. Get a good lawyer that can write a good budget where you can see where you can cut back to get the wiggle room that you want.

These usually are legal....whether or not all accepted by the trustee is dependent on the trustee. They all have their own opinion under the law.