Any Successful Chapter 13's?

[nikkie876]

Everything I have read has been doom and gloom about completing a Chapter 13...not many people do/can complete it. Our attorney is reviewing the numbers now...from the get go I thought we were textbook 5 year Chap 13. He mentioned we 'may' be able to get a Chap 7, but I am not too optimistic about that.

But now I am getting scared because it seems everywhere I turn it states the failure rates of 13 and how 'difficult' it can be.

I am the only one filing since the unsecured debt is in my name. We have a car and a home, and are current on all bills. Its just gotten to the point where it wouldn't be that way too much longer. I am just making minimum payments and not making a dent. I don't want to be paying on this for 30 years.

Thanks!

[momofthree]

There have been several people who've posted on here upon successful completion of their ch.13 and several who are also close to the end.

Stick around, it's not as bad as it is made out to be...

[lrprn]

Do a search in the Ch 13 forum for "discharge party". You'll find all kinds of folks here who have successfully completed their 3 and 5 year Ch 13. I think the discharge %s for our forum members here are higher than the norm (about 30% successful Ch 13 completion nationwide) becuase of the great advice we all get and the great support we get too.

Also keep in mind that although the national successful Ch 13 completion rate may only be 30%, but a large majority of those who don't successfully complete their Ch 13s have had an unexpected job loss, divorce, etc. and were able to convert to Ch 7, file Ch 13 again later, or file Ch 7 later. The number of folks that voluntarily dismiss their 13s and don't convert to Ch 7 or have their 13 dismissed by the court is actually pretty small.

[nikkie876]

Thank you! I've been positive (well, as much as one can) about my situation but at the same time I want to be realistic as well. This forum has been a wealth of information and I can't wait to have my discharge party!!!

[ruggal]

Success Here!

I saw your question, and although I've been a faithful lurker, I haven't participated in the forum too much. I wanted to let you know that despite the odds, and through a lot of "life" over the last three years, I made my final payment on 6/22

[NowImDownInIt]

I'm not finished, but wanted to say that I've gotten through a lay-off, a birth in the family and I am currently dealing with a totaled car. It can be done!

[justbroke]

I'm a converted Chapter 13. Sure, I'll be counted amongst the unsuccessful Chapter 13s, but I did receive a discharge in my converted Chapter 7 case. I can unequivocally state that a Chapter 13 is a lesson in budgeting. If you can't budget or refuse to budget, your fate will easily be predicted.

[NowImDownInIt]

I agree with justbroke.. About a year into my bk I posted a LONG post on here about how I budget for my BK.. It works for me. I took an $8000 a year paycut and was able to survive with my $700 a month bk payment until I had my daughter.

[andy158]

We have a car and a home, and are current on all bills. Its just gotten to the point where it wouldn't be that way too much longer. I am just making minimum payments and not making a dent. I don't want to be paying on this for 30 years.

Same situation here. We were current on all of our debts and had a credit score of 725, but like you saw no end in sight. One missed paycheck would have created a domino effect with our debts. It would have taken 2 lifetimes to repay the way we were going making the banks even more rich. We put a halt on the financial hemmoraging and now have a good budget to carry on after this bk is done with. It has taught us through experience and forced us to live within our means. A radical adjustment, but we are not living uncomfortably.

[Universal]

Some 13 stories do sound rough, and some are 13's are very rough. But it does provide a light where otherwise there was not one. While a 13 may be 'not a joy ride', certainly life before filing was worse.

[karm43]

It seems people pay so much for a chap 13 that they are unable to live.

[kjrmom911]

I'm not sure how successful we will be, but we have been living without credit cards since March and have managed to pay for an expensive dental visit and a car repair with cash. Those would have went on credit without a second thought before filing our chapter 13. I can't say its easy, but it sure makes you question every purchase you make. I know it's less than we were paying for all our credit cards/2nd mortgage and there IS a light at the end of the tunnel. 5 years is much sooner than 30 years. I think at the end of it we will be stronger and in a better position to start dreaming of our retirement years.

[lrprn]

It seems people pay so much for a chap 13 that they are unable to live.

Typically several things can happen that create a situation where a Ch 13 payment is not financially survivable for the long term:

(1) The filers are unable/unwilling to change their current spending habits.

(2) The filers don't manage their money well after filing to stay within the income they are bringing in.

(3) The filers are trying to keep secured assets that they probably should let go to get a real fresh start.

(4) The filers experience unexpected major expenses (car accident, job loss, divorce, etc) after filing that change their finances significantly (although plan modification or conversion can often fix this *IF* the filers let their lawyer know right away they aren't going to be able to make their Ch 13 payment to the trustee or pay major asset payments on time).

(5) The filers retained a bk or general lawyer to file their 13 who didn't do the best job possible representing their clients to get their monthly Ch 13 payment as low as possible and still be confirmable.

(6) Some combination of the above.



The key to surviving Ch 13 (even thriving!) is to:

(1) Interview multiple experienced Ch 13 bk lawyers and retain the best experienced Ch 13 attorney who is really going to protect your interests throughout the life of your plan.

(2) Build up an emergency fund as quickly as possible to handle unforeseen expenses that will inevitably happen over the years in your plan.

(3) Change the way you (and your spouse if one is involved) think about and spend your available money.

Get these three in place and your Ch 13 is going to be a much smoother ride.

[justbroke]

As a former Chapter 13 debtor, there is nothing I'd add to what lrprn just wrote. It is really, all about the budget and budgeting!

[bpokey]

While I'm not discharged yet, I did make my last payment on a 5 year BK on 6/17/11. It can be done. BUT - if you can work a chapter 7 instead - I'd highly encourage you to do that.