Overwhelmed

[Smokinjbc]

Hi,

I'm going to have a bit of a pity party here- because this is NOT going the way I hoped it would.

Initial consult, documentation meeting- both times was told my payment would be $250-$275. Admittedly, had to rush to file due to wage garnishment but on the day I filed, the payment was suddenly over $390. Ohh..k.

I decided I could still swing it, will be tight but worth it in the end. Then, after getting a wishy-washy answer from one paralegal about the question of what happens when my car is paid off, I decided yesterday to email the main paralegal on my case about what happens to my Ch. 13 payment when the car is paid off. I don't want a new car, I want to keep the old car that I've paid on for 5 years at not a great interest rate and use that money to save.

I got the answer today that the Trustee would most likely plan for a stepping up of my payment at the end of the year when the car is paid off. So I've gone from an inital $275 quote for my payment to almost $700.

I live in the ghetto so that apparently is to my detriment since my rent is low. So by November/Dec- I either have to move to a higher rent place, find some miracle financer for a new (used) car or just hand that $$ over to the trustee. There are several reasons (multiple pets for the move, nothing wrong with keeping my Nissan that will run forever for two major reasons) I don't want to make those changes, but I'm out of good options here. I do at least have till November to figure it out- but I'm just really disappointed and feel trapped again the same way I did when I was gambling and slave to the payday loans.

I am NOT unaware of how I got here, I realize I'm responsible for this mess. But I took this step to get control of my life- now I feel like I'm one emergency from a disaster and I will be in that position for the next three years.

I am starting to think this was a huge mistake- I'm having a hard time seeing any benefits to the Ch. 13 vs. just letting the collectors continue to harrass me.

Really..no question here- I am at the mercy of the trustee and my lawyer. Just someone tell me it gets better!

[falken]

When you are in a chapter 13, you need to contribute all of your disposable income to the plan.

If your disposable income in $390, then that is your payment. When your car is paid off you now have more money each month and the trustee is going to want your payment to increase by about that much.

As you said, you can get a new car or increase your rent expense (up to the allowed maximum) before you file if you want. However, they will still want all of your disposable income. Your payment to the trustee will just be less because you have other higher bills.

Since you don't seem to have many assets (rent, older car) I assume you are filing a 13 because your incomce is over the median and you fail the means test. That means your wages are ripe for the picking if one of your debts in collections decides to sue you.

Edit: You said 3 years, which says you are under the median income. Can I ask why you are doing a 13 rather than a 7?

[Smokinjbc]

Hi-

I am not over the median- I have IRS debt that cannot be discharged, otherwise I would easily qualify for a 7. I realize what it means to hand over disposable income- it just feels like I'm being penalized for living in a low rent situation and having an old car- things that I will have to change, and maybe it will be for the better. Plus, I'm very nervous about moving with my pets- I don't like our living situation now but I also know it's stable and my landlady is aware of and doesn't mind the dogs.

Anyways- it's a vent more than anything else. I just wanted somewhere to grumble about it ;).

[falken]

I understand the need to vent.

If it is IRS debt, they will start to get nasty. Seizing your bank accounts, taking most of your wages, etc. So Chapter 13 is probably a lesser evil.

If you increase your expenses make sure you still have enough money to pay in to the plan to pay off all the IRS debt in 3 years!

Other than that, good luck! Hope everything works out in the end. Start looking for a nicer place that takes pets... you may find something you really like!