Borrowed $3200 to file BK.....I know..

[secondtime2]

I had no other choice, I'm so broke! DH making $300 bi-wkly, etc.

Question is this:

How is that loan going to look by trustee (i'm in NC)? Do I have to include in BK?

And, how could some people be paying $500 ia month for a 350K debt? And we have 40K in unsecured debt, a house in foreclosure and making between 600-1200 a month with 2 kddos in tow and are supposedly going to pay $500 for 3 years. Does that sound right?

[justbroke]

Who did you borrow this money from?

Also, don't worry about what other people are paying. They may have surrendered property, so no longer actually have a $300K asset. Your payment is based on your particular situation.

[secondtime2]

oOPS, sorry, we borrowed from my DH 401 K. Thanks.

[justbroke]

oOPS, sorry, we borrowed from my DH 401 K. Thanks.

Okay, this gets more interesting. Did you get take a loan (with an actual monthly payback amount) or did you take a distribution?

In a Chapter 13, you may be allowed to treat that payback as an expense and pay it back during the Chapter 13. However, some Districts won't allow both a contribution and a loan repayment. Some Districts even frown on contribution during your Plan, but this is definitely allowed by the Bankruptcy Code.

So, what did you lawyer think about what you did?

[secondtime2]

I got a loan to pay back which I believe is about $35 a month. The paralegal in his office said it was okay since we're doing a chapter 13 but would of frowned if it was a ch 7.

[justbroke]

I got a loan to pay back which I believe is about $35 a month. The paralegal in his office said it was okay since we're doing a chapter 13 but would of frowned if it was a ch 7.

They wouldn't have frowned no it in a Chapter 7... it's just that you couldn't use the loan repayment amount as an expense in a Chapter 7.

So what's the problem? Did your Paralegal and I answer your question?