Really scared we'll have to do a Ch. 13

[limegreen260]

For those of you that have filed Ch. 13, how bad is it? I keep reading stories about the trustee pushing people into payments they really can't afford and then trying to live on a budget with no breathing room at all. I don't mind paying back part of our debt but I don't want to not even be able to afford a copay if I need to go to the Dr.

Is this common, or just a few people?

Right now, we are seriously borerline on Ch. 7 and I'm afraid we're not going to make it. I'm really scared of doing a 13.

[justbroke]

If you are going into a Chapter 13, having a really good attorney will be worth the cost. Not that many Chapter 13s don't fall into trouble, but you are more likely to have budgeting problems if you went pro se (ahem) or used a cheap lawyer (who won't even do adversary proceedings or lien strips because they take time and effort).

[HHM]

There really is nothing to be scared of, if you make too much money, you make too much money, that is just reality.

People always have the wrong perspective on a chapter 13, they compare a chapter 13 to a chapter 7...but that creates needless fear because YOU CANT choose which chapter you fall into. Thus, if you do not qualify for a chapter 7, you need to compare a chapter 13 to other "viable" alternatives. Which is really better for you, chapter 13, or doing nothing. I am willing to bet a chapter 13 is better.

Also, chapter 13 plans are NOT unrealistic. Chapter 13's fail for 2 reason (1) during the course of the 60 month payment plan, something changes in the debtors life (but that is not a problem because you can amend the plan or convert to a chapter 7, (2)...and this is the biggie, the debtor is simply unwilling to make the necessary adjustments in order for the chapter 13 to work. You do not need to live like a pauper to be in a chapter 13, but if you are used to shopping at Whole Foods Market for Groceries, you will need to start going to regular grocery stores.

[limegreen260]

I'm not afraid of being reasonable with money. We've been extremely frugal for a long time and have gone without in order to keep paying minimums on our cards.

For example:
I'd like to be able to go back to buying fresh produce and healthy food instead of living off of Ramen and mac n' cheese. Our attorney says when doing our expense sheet that $550 a month for groceries is perfectly fine. I'd hate to have the trustee knock us down a whole lot on that in order to squeeze a bigger payment out of us.

[lrprn]

Our attorney says when doing our expense sheet that $550 a month for groceries is perfectly fine. I'd hate to have the trustee knock us down a whole lot on that in order to squeeze a bigger payment out of us.

Your attorney sounds right on top of what your trustee is going to find *reasonable*. It's very unlikely that your trustee will tinker with this figure.

This is one of the biggest differences between filing Ch 7 and Ch 13. Ch 7 filers state exactly what they have been spending the last six months before filing. The best Ch 13 lawyers know how much 'give' there is in the numbers and will put down what's *reasonable* for your family size and neighborhood when you file. This is where the breathing room that can make or break your plan from the start comes from.

It's a great sign your lawyer is willing to increase your food expenses over what you typically spend - be happy about that - it's a good sign. Ask him/her if there's any room for increasing other expenses to a reasonablr level over what you have been under-spending the last six months still trying to stay afloat.