Filed Ch. 13 - North Carolina Payment Info

[carmen2010]

[ahall]

Nc ?

I was curious if you chose to file the 13? we are also in eastern NC and are trying to get a 7, but we are having a really hard time. We had to turn over tons of paperwork to the BA and now he has filed a motion to dismiss so we now have filed a rejection motion--so I guess we'll end up in front of the judge. We just decided to go all the way with it as we do not think a 13 would work for us. Did you get to pay anything outside your plan? Were you able to pad the numbers enough to have enough to feel like you can live through it? I am asking because I have read so many people on here say that it is so difficult and next to impossible but they were'nt in NC--

[ShooFly]

The biggest reason to file a 13 is to save your house. If you don't have a house and you don't pass the chapter 7 "means test", then you may be forced to file a 13 and pay some of the unsecured debt back.

[carmen2010]

Yes, I did choose the ch 13 because I have a lot of collections that I can pay own my own, which I was doing, but had some back taxes and pending judgments and I knew I didn't want the garnishments. My car note is included in the plan and I'm paying only my rent and monthly expenses like cell, internet, gas/water outside of the plan. Everything else is included - but there isn't much else in my case.

I padded some of the numbers, and it's definitely going to be tight, esp. at the beginning of the month, but I padded my numbers for food/health care which my lawyer was fine with. I think the IRS maximum allowable will be fine for me. I plan to pay $468. every two weeks which is definitely manageable for me. I don't have kids or anything so I think I will be fine.

[SMinGA]

Ask your atty about getting set up on biweekly payments. If you pay $468 you'll be overpaying - unless you meant 2x per month?

I am not in NC, but my atty said the plan payment can be based on our pay schedule as long as the end result is the same. A biweekly payment for you would actually be ($936 x 12) / 26 since there are 26 pay periods in a year, $432 per pay check.

I plan to pay $468. every two weeks which is definitely manageable for me. I don't have kids or anything so I think I will be fine.

[carmen2010]

Good catch, I only get paid twice a month- 15th and the last day of the month. SO it's not really every two weeks.

[HappyCatNC]

Hello from a fellow Tarheel.

NC has some of the most consumer-friendly laws in the state. It's a good state to be in if you have to file BK, too.

If you are in Wake county it's even better - it's one of the few districts in the country where you can pay off your 13 early at the "plan total amount" instead of a 100% payoff.

[newbie2]

Hello from a fellow Tarheel.

NC has some of the most consumer-friendly laws in the state. It's a good state to be in if you have to file BK, too.

If you are in Wake county it's even better - it's one of the few districts in the country where you can pay off your 13 early at the "plan total amount" instead of a 100% payoff.

I'm really surprised creditors haven't challenged this yet, as it is completely contrary to BK law.

[lrprn]

I'm really surprised creditors haven't challenged this yet, as it is completely contrary to BK law.

Actually BAPCPA (the current bk law) says nothing about early payoffs in Ch 13. The custom so far of having to pay 100% to pay out early has been set by case law precedents and local court customs. There's nothing to prevent a local court judge and trustee to allow paying out early and not pay back 100% in their jurisdiction.

Also there's the fact that by law the six judicial districts in North Carolina and Alabama aren't administered by the US trustee program either.

[carmen2010]

I'm really surprised creditors haven't challenged this yet, as it is completely contrary to BK law.

Good point... also great info to know

[mynameainttracy]

We are in Eastern NC and when we filed about 2 years ago we were told that 7's were becoming extremely hard to get in NC and were severely scrutinized by the trustee's office. We had other reasons we couldn't do a 7 anyway.

The trustee here is wonderful and if you have to file this is a great place to do it. Our trustee doesn't bother our tax returns and he isn't concerned with increases in your salary like some trustees who would jump all over that to try and up your payments. He is genuinely concerned with people getting back on their feet financially. Sounds corny, but it is true.

Good luck!

[HappyCatNC]

Our trustee in Wake district was extremely nice as well. He is very clear that is job is just to make sure both sides (us/creditors) follow the law, and he wants people to succeed in their plan.

According to my atty, I am to expect to likely hear zip from the Trustee for the next 5 years as long as my payments are in on time each month.

The NC BK courts are so overloaded with cases, as I'm sure they are across the country, that they have very limited resources anyway.

Case in point, I swear my 301 meeting was *maybe* a minute in length!

[carmen2010]

Our trustee in Wake district was extremely nice as well. He is very clear that is job is just to make sure both sides (us/creditors) follow the law, and he wants people to succeed in their plan.

According to my atty, I am to expect to likely hear zip from the Trustee for the next 5 years as long as my payments are in on time each month.

The NC BK courts are so overloaded with cases, as I'm sure they are across the country, that they have very limited resources anyway.

Case in point, I swear my 301 meeting was *maybe* a minute in length!

What is your trustee's name? I have John F. Logan. Do you pay with a check/money order every month or do you do the payroll deduction?

[mynameainttracy]

I have Logan and I pay through my bank's bill pay, so by check basically. He also uses 13 Data Center and updates monthly. Although he highly recommended auto draft I just couldn't bring myself to deal with it and face my HR person.

[HappyCatNC]

I have Logan also. He's a nice guy. The cases that went up before us where people were obviously being shady he set them straight, but for everyone else he was polite and to the point.

We "pay direct", that is we pay by check. I use my bank's billpay, and just allow a full two weeks for it to get to them - since my bank mails billpay checks from another state.

You only have to do payroll deduction in this district if your mortgage is through the plan.