Don't Know What to Do....

[chzhd]

We started the whole Chap. 13 process in December and finally got all the paperwork in about 2 weeks ago. When we started, they told us they thought our payment would be between $1000-$1500/month. Today our attorney calls me and says that he has good news and bad news. the good news is that there was some test we failed (??) and that our repayment will be 48 months instead of 60 months. The bad news is that our monthly payment is going to be $3175. I could just cry. If I take our take home pay and subtract the Chapter 13 payment, our mortgage payment, car payment, day care, life insurance & home equity loan, we're left with $522 a month for gas, food, etc. there's no way. AND, if you take $3175 times 48 months, that comes out to $152,000. I KNOW we didn't have that much unsecured debt. I need to re-look at my credit stuff tonight. We originally did this because we weren't able to afford our minimum payments, everything was getting out of hand, and now our Chapter 13 payment will be more than our minimum payments would've been. And now it's too late to go back since we haven't paid on them for months.

Also, I have 3 401K loans that are taken out of my paycheck that equal $500/paycheck that aren't taken into account at all because they'll be paid back during the course of the 48 months. that's all fine and good, but that's $1,083/month that we don't have for food for my kids. the first loan doesn't get paid off until 9/2010.

I called my attorney back once already asking him about this, he said he'd look into it. I also told him that I'm going to be paying another $1000/month this summer for my son to go to daycare, that wasn't figured in anywhere and if I'm paying all this, I won't be able to afford this.

I know that we got ourselves into this mess, but it just keeps getting worse and worse, no matter what we do to try to make it better.

[tkharvey]

That doesn't sound right? Let me know how it all ends up. We, too, are getting ready to file Chapter 13. Our attorney is running all the numbers. I am afraid that we aren't going to be able to afford the payment! I thought BK was supposed to help us?? Keep us posted.

[chzhd]

What also sucks, too, is that the only contact the attorney has had with us is just that he's needed more information from us. There has been no indication whatsoever that we'd have to pay in 4 years, let alone so much. I was thinking that we could sell our house, but from what I've read on here, it looks like that would just mean that we'd owe more towards Chapter 13....I'm not sure if that's correct, though.

[StartingOver08]

Check the income, there was a recent poster on here where the attorney doubled the income!

Check your budgets - your attorney obviously has some wrong information. Go over that budget with a fine tooth comb.

[woeisme]

Did your attorney include your mortgage and car payments in that $3175? I guess what I'm asking is are you paying those in the plan our outside the plan? Because if a couple of those kind of secured payments are being included in the plan, $3175 might not be so bad, because you won't have to pay them once the trustee payment is made, so a lot more take-home $. Hope it's something like that.

[Flamingo]

Your vehicles - are they crammed into your Plan or are you paying them outside the Plan? Also, added into your Plan payments is the Trustee's fee which is usually 9% or 10% (varies) of the total plan amount. That is why many people try to keep their mortgage and cars out of the Plan and pay them outside the plan. If your vehicles are crammed, you have no car payment and it is included in that monthly amount. You are obviously trying to keep your home; you may want to figure out if you can really afford to keep it.

Just go over all your figures again and see what your attorney says. Your Chapter 13 eliminated all the interest that would be accumulating with your debt and offers you protection against judgments and losing your home. Your plan was shortened for some reason therefore upping your monthly payments. You need a full explanation as to what occurred from your attorney to put your mind at rest and find out if there actually is/was a problem in the figures.

Best of luck to you!

[chzhd]

Well, my husband talked to the attorney and we're meeting with him tomorrow. So, then we should be able to see the numbers he is using. I believe one car is in the plan and one is not. He also said that on our credit report there were 3 cards that were within $100 of each other, which is highly unusual, so there may be some discrepancies on the report. I will look at that tonight.

I just want this to be over. Thanks for your responses.

[sharina]

Please share why you ended up 48 months. Most plans are 36 mos, or 60 mos.

[liz417]

Well, my husband talked to the attorney and we're meeting with him tomorrow. So, then we should be able to see the numbers he is using. I believe one car is in the plan and one is not. He also said that on our credit report there were 3 cards that were within $100 of each other, which is highly unusual, so there may be some discrepancies on the report. I will look at that tonight.

I just want this to be over. Thanks for your responses.

It doesn't matter what you owe, it's what you can afford to repay back to the creditors. I agree with the others, your attorney must have some incorrect #'s (not what you owe) and/or this amount includes your mortgage and car(s). Are you in a 100% repayment plan? If you cannot make that payment (which is crazy by the way), DO NOT set yourself up to fail your ch 13! Insist that your attorney work the numbers again!

Good luck and keep us updated!

[chzhd]

Well, we met with our attorney last Friday and he made up a new payment plan starting with a lower payment and then once the 401K loans are paid off, the payments go up. So, as long as the trustee and judge accept it, we'll be able to afford it, and it will end up going 60 months.

Then I found out today that a collection agency called my sister-in-law looking for me. I haven't been answering any 800 number calls up until now, I just don't want to deal with it. So, once I found out that they're calling relatives, I answered one. The girl was a complete bi#$%. I told her that we were filing bankruptcy and I could give her my attorney's name and case number. She said that didn't matter because we didn't file yet, that I needed to pay now. I told her I couldn't. She said fine, she was going to put down that I was refusing to pay. I again said that my attorney told me to refer all calls to them and she said she didn't care because we didn't file yet. Wow. Hopefully it will get filed this week.