What is daily life like on Ch 13 plan?

[andy158]

Best part for us is a phone that does not ring 100x a day and an empty mailbox!

But seriously, the lifting of the burden and knowing it will be over in 4.5 months now is a real stress reliever. Think of it as an expensive car payment. In five years you will be financially reborn.

Curbing spending was the hardest for us. Particularly around the holidays. Saving for an emergency fund is proving difficult due to lack of overtime, bonus reduction, and now a two week layoff over the holidays. Its not easy, but we keep looking at the big picture and think of what we would still be doing if we hadn't filed. We are not starving or freezing and have some entertainment enjoyment every month. Think of it as being on financial probation.

[markdel16]

Wife and I didn't get each other anything, and she ended up baking some stuff for the people we planned on giving something to. Does it suck getting great gifts from people and then giving them food in return? Sure does. It'll be this way for 3 years now, and most of my family/friends know the situation, so it's all good.

[qsr]

13 sounds like a prison sentence, but I'm afraid i'm going to make too much to file for a 7. I'm worried if I file before I get a job that nobody will offer me a job. I'm in such a tight spot I really am not sure what to do. Overall I'm pretty angry at the people who pushed through the BK act of 2005. They sent people like us to purgatory.

[sasquatch]

In my opinion, it is AWESOME. Been on the plan a bit over a year. I have enough allowed expenses to afford food, clothing, small gifts, occasonal travel to visit relatives, and NO stress on how to make payments. Just pay the trustee, house, and utilities. Everything else is cash on the nail. Granted, it's annoying to have to defer house repairs or upgrades, and man, I'd love to get a motorcycle, but that'll be around when I complete the BK.

Kid doesn't get to go to fancy after school care anymore. He can do his homework at home, and I worked out a plan with my boss to get home a bit earlier.

Dad can't get a new flat panel TV.

If the computer breaks, it's broken.

Such is life - but the important things are still covered (food, clothing, shelter) and with so much less stress, life is good. Play with the boy, do cheap / free stuff around town on vacation.

And I'm re-learning how to live financially. Good all the way around. Wish I'd done it years before and saved the stress.

[indebt00]

Daily life is a lot more stress free

No more worrying about how I am going to make all the bills and how much longer can I do this, etc. that went on for years....stress really makes you sick in many ways....that has been lifted from my life.

yes I do worry a little about our plan, as we are 6 mos in and not confirmed yet, so I worry about the payment going up. We have gotten used to the income we have now and are doing pretty well. If our payment goes up we will be living a lot poorer

so far, so good. I do miss being able to buy certain things, but that feeling passes. I am just glad that we are able to make all our bills and have some money left to do the things we enjoy (just on a smaller scale)

[bkstuff]

confirmation

Still learning....why so long for a confirmation (and what is the confirmation)??

[sofarsogood2]

"What is confirmed?"

You and your attorney will submit a plan of repayment based on your income and expenses. It must be confirmed (approved) then it is pretty permanent. If the court doesn't approve, then you have to rework your plan a bit. It is really important that your attorney is experienced in Chapter 13 (not just 7). Chapter 13 filings are less common, so attorneys don't see them as often. You need someone who understands how to get you the best plan possible.

Keep reading this forum and asking questions so that when you go on consultations (do at least 3 IMO) you can communicate effectively with the attorney. You will also be better prepared to recognize one that "gets" chapter 13 if you are well informed.

Best wishes!

PS-Some confirmations take longer- ours did because the courts were so backed up. Ours was delayed 2x-but no problems with the plan.

[flower04]

We've been in 13 for about 6 months. One of these months was REALLY hard to make the trustee payment $650, because we had $1200 car repair and some very unexpected medical bills. We got paid on a Friday, the payment was due that following Monday and we have to send it across the country. We had to pay an arm and leg for overnight delivery, but it got there and we survived. We started getting our money orders at the bank, (where else would you go??) and then realized through this awesome forum that we can get one for $.89 at other locations. You learn to save, you learn to look for deals when you do have to go out and you learn to love your local library. I've read more books this past 6 months than I have in the last 3 years. My kids love going and it is an adventure for them, and FREE.

Anytime we have extra $ we save it like crazy. Have more in savings (not that much yet) than ever have had before. We actually have a savings instead of just putting everything into checking accounts.

I am grateful for this opportunity actually. OUr road to 13 was paved by medical and dr. bills, some of which we paid out of our own pocket instead of put into teh 13 because we still go to these specialists, so that has been hard, but well worth it. CC's can suck my gas and I never want to have one again. Never see the need either.

Our thoughts are changed. Do I need that extra three boxes of cereal because it's on sale but it puts me over my food budget? I plan my groceries around specials and sales, we do eat out probably 1x every 6 weeks and order pizza probably 2-3x a month and now we enjoy it, not just a "where should we eat out tonight" and now it is special and we have a reason to celebrate.

Gifts are homemade and hearfelt. You can do a lot if you really think about it. Having a 13 in this economy is helpful because everyone is struggling.

Good luck HTH

[jade73]

We filed in July and it has just been down hill for us. We have two vehicles that are paid for, thanks be to God, but both of them started giving us trouble AFTER we filed. Our main reason for filing Chap 13 was to save our home from foreclosure but we ended up getting behind again putting out $1600 + to fix both vehicles and my husbands truck is parked yet again and needs about $500 worth of work to get it back on the road. Hopefully we'll be able to use income tax refund to fix this. We got behind on the mortgage AGAIN and now we are having to come up with an additional $233/month to pay lawyers fee for filing to lift the automatic stay. We have to pay this for 9 months. I guess everyone has a different situation, hopefully ours will get better. Hopefully yours will be better than ours.

[bkstuff]

after 13

Sorry to hear about the car issues! Bummer. I hope things turn around for you.

Getting behind on your home again brings a thought to mind. What would happen if one filed CH13, and is paying back house payments in the plan, along with other debts and during the 36 months (or 60 months) you do get behind again, and find that you really just need to foreclose? Does the CH 13 end at that time, or does it change your payment into the 13 if you end up renting for less money?

[ABC]

Is it feasabile and or would an atty even try to have one file CH 13 when they really should be a CH7, but a TT might try to push for the 13 if it were files as a 7? For example if you are just below median, -DPI of 5K adn unsecured of >100K could they make the 13 stick or does the TT move to convert you to a 7 the way they ask you to convert to a 13 when 7 is inappropriate? My thinking is that the TT would see that there is no obvious abuse and not enough income to fund the 13 and would make it thus easier to defend the 7 filing, rather than the other way around.

I can't qualify for a 7 or I'd just get it overwith. CH 13 is only option.

[lrprn]

Getting behind on your home again brings a thought to mind. What would happen if one filed CH13, and is paying back house payments in the plan, along with other debts and during the 36 months (or 60 months) you do get behind again, and find that you really just need to foreclose? Does the CH 13 end at that time, or does it change your payment into the 13 if you end up renting for less money?

Most folks file Ch 13 not just to save their home, but to deal with all their other debts as well. Therefore the vast majority of folks will decide to continue forward in Ch 13.

After foreclosure, the mortgage payment is disappearing permanently, so your plan can be amended to reflect your changed circumstances. What happens with your payment depends on how much change there is overall in your rent vs. your mortgage payment and how much your expenses change moving to a rental.

[jade73]

Getting behind on your home again brings a thought to mind. What would happen if one filed CH13, and is paying back house payments in the plan, along with other debts and during the 36 months (or 60 months) you do get behind again, and find that you really just need to foreclose? Does the CH 13 end at that time, or does it change your payment into the 13 if you end up renting for less money?

If we get behind again or fail to make the additional $233 payment per month we are pretty much screwed. We absolutely cannot be late with the additional payment. We've been told that or they'll lift the automatic stay. I get so stressed sometimes that I just want to give up but God keeps telling me to hang in there. It's going to get better and I have to believe that. Our house is probably not even worth what we are putting into it but it's our home and we don't want to leave. I just don't understand why mortgage companies won't just refinance you to a lower rate and be done with it.