I'm about to file..quick Q

[repuman]

Did you folks that that have already filed find that your overall payment plan worked out better/same/or worse that you had BEFORE, when struggling month to month like we are doing now? We don't qualify for 7, got about 60k on CC debt, 12 k student loan (gotta eat that one, we know), and are just concerned about meeting monthly expenses with one kid strugging with a granddaughter, another kid in college. These things don't figure in to the "allowable deductions" we fear. Thanks for any feedback, we know its gonna be tough.

[NoTomatoCan]

Did you folks that that have already filed find that your overall payment plan worked out better/same/or worse that you had BEFORE

Although not yet confirmed (been making payments since March though) it is tons better! We are stripping our 2nd and out monthly TT payment is only $200 more than what we were paying on that 2nd. That wipes out tons of CC payments and with the student loans now on hold, it is much better.

[sheilaE]

We haven't filed yet (it's coming very soon) but when we met with the atty and he did the means test-it came up that we would be paying a bit MORE then what we were actually paying out each month in cc payments, which was why we were struggling and charging gas & groceries. We have 3 children-1 in her second year of JC College, 1 is a high school sophomore and the youngest is in 7th grade. None of them ever ask for things and want expensive clothing. They know money has always been tight.
I don't sleep well at night because of the worry about what our payback payment is going to be. The atty said the amount MAY go up some (WTH?) or go down. We have a home we are keeping, hoping to strip the $50,000 2nd and about $80,000.00 worth of debt that will be wiped out. I know that in 5 years we will be thankful, but I'm just not sure how we will survive it with 3 kids for next 5 years. It would have been so much easier to do this when the kids were younger or older and had already moved out, but then I guess there really is no "good" timing.

[newbie2]

Did you folks that that have already filed find that your overall payment plan worked out better/same/or worse that you had BEFORE, when struggling month to month like we are doing now? We don't qualify for 7, got about 60k on CC debt, 12 k student loan (gotta eat that one, we know), and are just concerned about meeting monthly expenses with one kid strugging with a granddaughter, another kid in college. These things don't figure in to the "allowable deductions" we fear. Thanks for any feedback, we know its gonna be tough.

Much better. Instead of over $2000 per month going to unsecured creditors, we are down to about $500 per month and there is an end in sight.

As far as expenses for your adult children, no, generally it is not allowed. I know it's a tough economy and difficult to find jobs, but the adult kids need to learn how to contribute more to their own expenses and rely less on The Bank of Mom and Dad.

[sheilaE]

We're looking at our payments being in the ballpark of around $1300.00 per month.
We "were" paying $1200.00 in cc payments per month and not making it.
Not sure how we will do it. The only thing we could really cut might be the grocery bill. Even that's hard though with 3 teenagers.

[repuman]

Wow, sounds like its going to be a roll of the dice on how ours will come out, worst case I guess we'll be out from under in 5 years. Newbie2, your absolutely right about the adult kid thing. Really, the kid with the daughter (our granddaughter) is doing well now, although helping him out a few years ago helped get us where we are. Our youngest in college just got a summer job, that'll help. We still end up helping him with apartment, books, etc. Thanks all for the replies.

[repuman]

More info about us if it will help. Together we make around 80K, owe 140K on home. Lawyer checked, home presently worth 131K. Wife has a 401k loan that takes 65% of her take home pay out, her check is only around $200.00 per week. Does the net pay/slightly upside down on house make a difference on your payments?

[LadyInTheRed]

More info about us if it will help. Together we make around 80K, owe 140K on home. Lawyer checked, home presently worth 131K. Wife has a 401k loan that takes 65% of her take home pay out, her check is only around $200.00 per week. Does the net pay/slightly upside down on house make a difference on your payments?

Your payments are equal to your disposable income which is gross income, minus required payroll deductions (including the 401k loan payments), minus any secured debt payments you will make directly to the creditor, if any, minus all necessary living expenses. The negative equity in your house will make no difference to your payment unless you have a second mortgage you will strip which would eliminate the need to pay the second as a secured debt.

As you fear, helping your adult kids will not be an allowable expense. The college student will probably need to work year round.

[jange]

Much better! My payment did go up after the 341 meeting and a bonus got added in, but it is still doable, just tighter.
I pay my bills (except the trustee payment) through my banks bill pay. For the first time in a very long time, I know I have enough money to pay everyone without worry about bouncing any payments, or if I would have money left over for food or gas. I also use Quicken to track everything.
filed 1/11/10
341 3/29/10
confirmation postponed 5/18/10
rescheduled 6/22/10

[indebt00]

for us....the situation improved greatly. Our payments to unsecureds where HUGE.....I am embarrassed to say even here.....so...we were so short every month and stressed all the time about how we would pay all the bills. charged up huge debt and burnt thru thousands of savings.....gosh...hate even thinking about it....

life during BK is way better for us. Less stress and learning to finally budget and live on cash. way way better...for us at least

[SMinGA]

Your home equity situation will probably not have an impact on your situation. If you had a $140k 1st and any 2nd, you'd be able to strip the 2nd: meaning no longer make the 2nd payment, and it would be treated as general unsecured in your plan. Based on the #s you gave I am guessing that does not apply to you. If the $140k is combined 1st & 2nd, then the house must be worth less than the 1st in order to strip the 2nd.

How long remains on your wife's 401k loan? The 401k loan will be seen as an expense in your plan, most likely making your plan payment step up when the loan payment ends.

More info about us if it will help. Together we make around 80K, owe 140K on home. Lawyer checked, home presently worth 131K. Wife has a 401k loan that takes 65% of her take home pay out, her check is only around $200.00 per week. Does the net pay/slightly upside down on house make a difference on your payments?

[Lissy]

Filing improved my situation as well. I wasn't living on my credit cards, I stopped using them more than a year before I filed. So I had been living cash-only for awhile. My monthly trustee payment is $100 more than I was paying on credit cards, BUT I wasn't paying on all of them. There were 3 that I just couldn't afford even the minimum payments on, so I didn't pay them at all. Which of course can't go on forever. I have cut back on some things, it wasn't that difficult to redirect $100 per month. I am fortunate that I haven't really had to change my lifestyle too much and now ALL my bills are paid each month and I don't have to listen to the phone ringing constantly!

[repuman]

Thanks everyone for the replies, beginning to sound like it may end up being better for us in the long run. Wife is freaking out fearing we cant make the payments, but we drained all our savings making minimum payments to the cards before, thus, our present situation. Her 401K loan goes about another 2 years. indebt00, don't be embarrassed at all, you and I are leading parallel lives in at least this way, it seems.
We meet with the attorney probably later this week, he works out the initial payment plan, am I correct?

[pnut22]

I'm a little over a year in and life is much much better. I really seldom think about money now. It's all spent already! But seriously, the phone calls are gone and no longer worry every day about being handed a summons. Much better.

[researchnerd]

Yes, the attorney will work out the initial payment plan. However, I highly recommend asking for a copy of it before it is filed to be sure everything makes sense to you, that it's actually do-able, and is accurate. I didn't get ours until after it was filed, and then found a bunch of mistakes, so it will have to be amended.