CH 13 filing tomorrow..a few questions...

[KAKRN97]

Because my DH got called back to work last month, I did not qualify for CH 7 as originally told to me by my attorney. I passed the means test which means my CH 13 will be paid back over 3 yrs due to a DMI of approx $1350 so that will be my payment to the trustee. The first one is due 10 days after filing so next weeks paycheck( on 6/4) will ALL have to go to the trustee! I'll have less than $150 to get through the next two weeks until I get paid again. I also need new brakes for my car because they are really BAD! I just had a new transmission put in to the cost of $2600..and then a few days after that had to have an engine tune up, spark plug replacement, 3 coil springs replaced at another $422!!

The lawyer told me that if my DH moved out of the house for a few months prior to me filing that his income would be taken out of the equation and I could file CH 7. I declined that option because it would just devastate our 6 yr old son. I wracked up the debts and have no issue with having to repay them. I'll actually be "saving" $500/month with the current proposed Ch 13 plan.

Now, my DH's job is shaky. They told him a few weeks ago that they may lay him off again at some point when business slows down and call him back as needed. His higher income being back at work is what forced me into a Ch 13 rather than a Ch 7. I did ask the paralegal if DH did get laid off and his income was cut in half(he got UI for 15 months prior to being called back-$236/week). She told me to call their office..so I wonder if DH lost his job again if I could convert my Ch 13 into a 7?
Now I wish I had gone to the BK attorney sooner because had I filed two months ago, I could've done a 7 no questions asked(relatively speaking).

Here's my next question. I borrowed $1250 from my mother(prior to filing but after I filled out my paperwork for the lawyer) to pay for the transmission in my car...am I allowed to pay her back during my Ch 13 or do I need to wait till it's completely discharged. She's not demanding that I pay her back ASAP as this money came out of her inheritance from my late grandmother so it's not like she's desperate for the money to be repaid right away.

Thanks so much! I've learned SO much from this forum!

[Flamingo]

You will need to learn to budget out your paychecks to cope with the Chapter 13 payment. Budgeting is difficult to do when one did not do it in the past but you will become an expert during a Chapter 13. It will totally change your life and your outlook as to handling money in several months. Right now you need to learn to survive without the credit cards to cover the deficit you have until you have the cash...previously one would reach for the credit card...a Chapter 13 is the best budget teacher ever.

Bring the matter of your mother lending you that money to the attention of your attorney since it was money given to you prior to filing and for a debt that appears to be incurred prior to you filing (car repairs).

As to your husband's situation, a Chapter 13 cannot be based on events that have not yet occurred. So nothing can be done as to a modification or possible change to a Chapter 7 until there is a change in his job status/income and proof of that can be obtained from his employer. Your attorney can then review the situation and go from there. You will incur more fees to change to a Chapter 7 or for a modification.

[SMinGA]

Is there a reason why you must file tomorrow? If not, file when its best for you. I believe the requirement is to make the first plan payment within 30 days of filing, but perhaps your attorney wants it paid early just to be careful. If you can't afford to pay it all out of one check, perhaps delay filing by 2 weeks? Take 1/2 from each of the next 2 checks.

Just my 2 cents worth - but if the current household income is unstable, filing now could be a mistake. A plan can be modified, but it may take time. If you're not facing an imminent judgement, why not wait until things settle?

[Universal]

My personal problem would be with the atty. giving an option of your hubby moving out for a few months...... has the appearance of fraud to me.

[momofthree]

You just stopped paying credit cards 1 month ago, there doesn't appear to be a rush to file. You may need to take a few months of NO payments (no cc, no bk payment, etc) to save some money & take care of expenses that need to be taken care of. In the meantime, if your dh's pay decreases again, then you may have ch.7 as an option. You should have at least 6-8 months of time before the cards try to sue you for non-payment....

AND if you are going to end up in a ch.13, then buy a new(er) car now--while your credit is still okay & your dh is working. The late payments won't have reported yet. It will also serve to decrease your dmi.

[KAKRN97]

The need to file soon was because now that DH is back at work, if I waited too long,his higher income would've had us failing the means test, which would mean a 5 yr payback instead of a 3yr payback. I am glad DH is working again, that's for sure but it doesn't help when it came to filing BK. Like I said, he could go back to work Tuesday and they could lay him off again..we just don't know how stable his job is right now.
I was not cool with the idea of DH moving out to be able to qualify for CH 7 either...sure we could use a break from one another but at what expense to our son? Plus the cost of having to FIND a place for him, changing addresses with work, on his drivers license, etc.....not worth the hassle to me and yeah it kind of sounds like fraud.