3 Years Into a 5 Year Plan, One Mans Story.....

[bobby125]

Hello All

I joined this forum about 3 years ago when I first started to discover the option of a chapter 13 bankruptcy.

At the time, I owned three properties, my home, a rental home, and a rental condo. I had approximately $100k in credit card debt and no where to turn

I filed a Chapter 13 BK in May 2006 in which I agreed to pay off $743 per month to satisfy my debt. Or about 40% of what I owed. I was allowed to give up my rental condo, which I did.

I was and still am in sales and when I filed I had a downstreak for about 6 months prior so my payment should actually have been higher. Pre recession I made a pretty good living but things have fell back to earth for now

I have completed 38 months out of 60 months and along the way have still managed some luxuries, like a vacation here, a vacation there, new furntiure (on my wifes credit of course!).

One big thing we did to survive was not have taxes drawn out of our paychecks which allowed us more takehome

Now we owe $10k to the IRS and are on a 36 month plan to pay them back
We also owe $10k in credit cards in my wifes name, the majority of which was run up the last 3-6 months while my commissions have all but disappeared.

Tommorrow I start a new job at my current company that pays me strictly on base salary, no more commission

MY current plan is to:

Keep paying the BK for 22 more months and complete the program

Sell my rental property once the 22 months is up and pay off the tax debt and remaining credit card debt

This will make me debt free except for student loans

Not bad for being 32 years old, IMO



SO WHY DID I POST?

Well just to give some insight on what it is like in a Chapter 13 plan

To give you an idea of what happens, what could happen

If anyone has any questions, please feel free to post and I will try and respond as quick as I can

Thanks and Good Luck to All

[ram180]

well i'm almost 3 yrs into a 60 months plan, this nov will be my third yr. its been really hard for me trying to make my payments espcially when my income dropped by 423 bucks since the meeting with my trustee. i still have to make my house note and the other coast of living plus two kids and a single dad at that. sometimes i dont know if i'm going or comming and feel like just throwing in the towel most of the time. i never have anything extra and sometimes have to visit a payday lender just to have food on the table. i'm going to pray and hope i can make it for two more yrs and especially pray that my job holds out, i've been loosing 24 hrs a month since jan in plant shutdown days due to the economy. so happy for you that you have choices my friend just wish me luck sir

[lrprn]

its been really hard for me trying to make my payments espcially when my income dropped by 423 bucks since the meeting with my trustee.

Ram, have you told your lawyer that your income has dropped this much since filing? It's possible that your plan could be amended to lower your monthly payment.

Please call your lawyer tomorrow and talk over whether a plan amendment is possible given your permanently reduced income. For all you know, you might now qualify for Ch 7. Go find out. Don't assume you are stuck where you are now for two more years, especially with your kids involved.

[ram180]

no i havent spoken with them because i been told you are pretty much stuck with whatever the trustee tells you u have to pay. but i will try again

[optimistic1]

lol, what lunacy, the judge is the ruler not the trustee, I would tell him to go shove it, here is my amended plan.

[Crozier]

I have a simialr situation, maybe you can shed some light. I am going to file in the next few days. I anticipate a drastic cut in overtime (which is what I have been living on for the past year). Knowing that this loss of income coming, should I wait a few months to lower my 6 month income average, or file now, and attempt to amend a payment plan if the payment is high and based on my current pay. In other words, my base pay is known, my overtime is not. I know for a fact o/t will be cut next month (indefinitely). How would you play it out?

[95kindebt]

thanks so much for sharing!

[lrprn]

Knowing that this loss of income coming, should I wait a few months to lower my 6 month income average, or file now, and attempt to amend a payment plan if the payment is high and based on my current pay.

If your financial situation does not require filing the 13 immediately (like your home will be foreclosed on in the next week), it's far better to delay the filing until your income falls.

Amending a 13 plan after confirmation often costs extra, and also there's no guarantee the amended plan will be confirmed. The plan amendment process can take 2-3 months, even longer if your trustee fights it. Wait to file if you can - it's far easier in the long run.