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So, forming a new plan (mostly update, a question at the end)

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    So, forming a new plan (mostly update, a question at the end)

    Earlier this year when we dismissed the (not yet confirmed) 13 the intent was to get solid transportation & mortgage modification, refile after a few payments on the car loan and do a 36 mo plan. With higher DMI from lower mortgage payment & no more mortgage arrears, would have been able to resolve in 36...

    Some details have changed, such as hubby no longer working. Expect to be able to get my reliable replacement vehicle in late August (close enough to my birthday that I can get '11 tags and not have to pay the ad valorem tax for '10). Should still have a small + dmi after taking on a low car payment ($200-275) thanks to gas savings if I'm able to find the used Prius I want, and because the mortgage mod reduced our mortgage payment. That is considering we have not been paying on hubby's vehicle - USAA has been dormant since the dismissal but can't count on that for a permanent resolution. If they get aggressive, we'll have a problem. Would not be able to catch up the loan (after paying $ down on the car I buy) or make the old car payment of $335 which has a couple of years left.

    Thinking now the best move might be for me to file ch. 13 solo in the spring, using income tax refund (child tax credits, I claim exempt so can't intentionally get less refund) to pay the atty fees. By my calculations, we could do a payment of $475, resolve both vehicle loan balances and the 5.4% our trustee takes off the top. Would leave a few $'s left for unsecured. If I filed sooner then the '10 refund would go to the trustee, might as well use it to my advantage first I think. Very few $ in the plan would be available for unsecured, though they'd also get our refunds for '11 and '12. Possibly '13... $475 would be doable I think, but there'd be nothing left. Including the atty fees in the plan would require a higher monthly than I think we could manage.

    I'm thinking to file solo - so that if/when hubby gets a job that income would not be subject to the plan and would give us some breathing room. Things would be tight @ $475, bare bones on expenses. He has some credit cards in his name only but as long as his net pay is under $217.50/week - they could not even touch him if they went for a garnishment. And perhaps if he is not part of the 13, it would give us cause to keep some refund $ each year - file jointly - though maybe not a good argument if all or most income is on me.

    No matter what - we're under median. My gross on main job + pizza delivery is best case scenario of $50k per year and we're family of 5 in GA. Will not have a minimum amount to pay in for the asset/liquidation test. Any equity in vehicles can be exempted even if I file alone.

    Like I said, I do have a question... If I alone file - household of 5 w/ 2 adults in the household - could it pose a problem that my plan would pretty much just be paying off 2 vehicles? One was purchased in 3/07. The other would have 6-7 months of payments before filing. Atty has said 3+ months of payments on the 'new' car are enough, but I have not discussed the idea of only me filing.
    Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
    (In the 'planning' stage, to file ch. 13 if/when we have to.)

    #2
    What is the reason for a 13 and not a 7 in the first place?
    filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!

    Comment


      #3
      Can't do 7. Ch. 7 filed in 09/05, discharged 12/05. Was the end result of a car accident in 2003 where I broke both my legs. I was in the hospital 3 weeks, in physical therapy for months after that... Was a while before I could return to work and even longer before I got back to full time hours, and temporarily my husband could not even work. (For a while after I got home, could not be left alone w/ the kids as I could hardly get around. Kids were 15 months, 3, 4 1/2 at the time.) Should have filed it sooner, but we tried to dig ourselves out.

      Now, well - life happens. Hubby's income started dropping a couple of years ago, expenses increased. Used credit cards to bridge the gap, thinking it was temporary. But hubby's $ never went back up. Ran out of room on the cards, faced reality. Cut back where we could and I started looking for a 2nd job. Found one after 6 months of trying. But after months of being behind, late fees & higher rates on cards, no hope in getting those resolved on our own. Resolved the mortgage by working out & finalizing a mod over the past few months.

      Originally posted by catleg View Post
      What is the reason for a 13 and not a 7 in the first place?
      Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
      (In the 'planning' stage, to file ch. 13 if/when we have to.)

      Comment


        #4
        Depending on the trustee, you might have trouble with only paying cars in the plan since you'll be considered a "serial filer." We almost didn't get ours approved but the trustee said he felt that our totality of circumstances (specifically mentioned the fact that this was our first bk) didn't indicate presumption of abuse, and he went ahead and approved it.
        Filed Chapter 13 on 2-28-10. 341 completed 4/14/10. Confirmed 5/14/10. Lien strip granted 2/2/11
        0% payback to unsecured creditors, 56 payments down, 4 to go....

        Comment


          #5
          When we filed last Dec - nothing was said about having filed previously. That plan was to pay cars (one of which has since died), arrears, atty and a tidbit to unsecured. Hope we get the same trustee again.

          In the belief that every little bit helps - I just 'found' $46 more for unsecured... Using a bonus to fix our escrow. With not paying earlier this year for months, of course our escrow will be in the red once taxes are paid in a few months. They did not address this in the mod - so option was to raise the escrow payment (which would end up with another adjustment next year) or just fix escrow manually.

          Will pay in $875 to balance it - then the monthly escrow will be RIGHT. Monthly mortgage payment when it balances out will be $911 instead of $957.
          Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
          (In the 'planning' stage, to file ch. 13 if/when we have to.)

          Comment


            #6
            Originally posted by SMinGA View Post
            When we filed last Dec - nothing was said about having filed previously. That plan was to pay cars (one of which has since died), arrears, atty and a tidbit to unsecured. Hope we get the same trustee again.
            Crossing fingers for you....
            Filed Chapter 13 on 2-28-10. 341 completed 4/14/10. Confirmed 5/14/10. Lien strip granted 2/2/11
            0% payback to unsecured creditors, 56 payments down, 4 to go....

            Comment


              #7
              Originally posted by SMinGA View Post
              Like I said, I do have a question... If I alone file - household of 5 w/ 2 adults in the household - could it pose a problem that my plan would pretty much just be paying off 2 vehicles? One was purchased in 3/07. The other would have 6-7 months of payments before filing. Atty has said 3+ months of payments on the 'new' car are enough, but I have not discussed the idea of only me filing.
              It sounds a lot like my plan, except mine is for 5 years. $500 per month will pay off the new car (I only made one payment before filing), attorney fees and trustees fees, leaving a token amount to unsecured creditors. Had an easy 341 today and the trustee will recommend confirmation.
              LadyInTheRed is in the black!
              Filed Chap 13 April 2010. Discharged May 2015.
              $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

              Comment


                #8
                Nothing you've said sounds crazy to me, so it sounds like a good plan; except for the part about filing solo. I'm not sure how much power and motivation they'd use to go after any income increase by non filing spouse.
                filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!

                Comment


                  #9
                  My question is how can you get a discharge in 13 if you're not out of the 8 year timeframe yet? That statue comes into play doesnt it?

                  I too wonder how you can file 13 without your husband - I think trustee is going to have an issue with that, unless all bills are in your name alone, including the mortgage, regardless that he isnt working.

                  However it works out (and I hope it does for you) remember not to cut yourself short. Your escrow in your mortgage can/will go up as will your insurance, especially if you are in a credit profiling state (ours did). You dont want the trustee to state your plan isnt feasible - and if hubby finds a job, you're going to end up paying more into your plan anyway, even if you file alone as all income is counted I believe for Ch. 13.

                  On a side note - we have a hybrid civic and love it. It gets 45 mpg and its the 2nd generation hybrid I believe (2005). On a bad day with AC blaring in stop and go traffic, we get 38 mpg

                  Comment


                    #10
                    Originally posted by Pandora View Post
                    I too wonder how you can file 13 without your husband - I think trustee is going to have an issue with that, unless all bills are in your name alone, including the mortgage, regardless that he isnt working.
                    Since Chapter 13 is voluntary, even if all the debt were joint, there is nothing the trustee can do if only one spouse wants to file.

                    However, if all the debt was joint and only one spouse filed, it really wouldn't do much in terms of helping the marital household!

                    Comment


                      #11
                      Time between filings: Can file ch. 7 again after 8 years; can file ch. 13 4 years after a ch. 7.

                      As for hubby/income - I have always been the predominant income earner. I am 'better' at working, and have more earning potential. We have 2 elementary school & 1 middle school age kids. Oldest just turned 12, we have to consider what they need in terms of the 2nd parent's working schedule. While the 12 year old would be ok on his own for short periods of time before/after school - he is not old enough to watch his sisters. Not to mention kids do better with parent involvement in their day to day lives - not just being at a sitter's all the extra daylight hours.

                      As far as I know - there is no rule/law saying both spouses must file. If it becomes an issue, because the plan must pay off 2 vehicles, he will file also. If/when he brings more income into the household - amending the plan to adjust expenses (I think) will not be a problem. I've just seen how that can take time...

                      I was able to drive a Prius for a couple of weeks earlier this year, averaged 50 mpg. I drive 750 miles per week between job 1 commute & job 2 + odds and ends of running errands around town. (Job 2 is pizza delivery.) I'm getting 22-24 mpg now, which is not bad, but in a vehicle that is not going to last. '99 w/ 146k miles. Was good as a 'cash car' but will just be a matter of time before it needs major work. Would rather buy a car that will last 4-5+ years, improve gas efficiency, and be better off for the long run.

                      Originally posted by Pandora View Post
                      My question is how can you get a discharge in 13 if you're not out of the 8 year timeframe yet? That statue comes into play doesnt it?

                      I too wonder how you can file 13 without your husband - I think trustee is going to have an issue with that, unless all bills are in your name alone, including the mortgage, regardless that he isnt working.

                      However it works out (and I hope it does for you) remember not to cut yourself short. Your escrow in your mortgage can/will go up as will your insurance, especially if you are in a credit profiling state (ours did). You dont want the trustee to state your plan isnt feasible - and if hubby finds a job, you're going to end up paying more into your plan anyway, even if you file alone as all income is counted I believe for Ch. 13.

                      On a side note - we have a hybrid civic and love it. It gets 45 mpg and its the 2nd generation hybrid I believe (2005). On a bad day with AC blaring in stop and go traffic, we get 38 mpg
                      Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
                      (In the 'planning' stage, to file ch. 13 if/when we have to.)

                      Comment


                        #12
                        Ok, but if you didnt file jointly wouldnt the trustee have issue with trying to do exemptions as well as valuation of marital property - as posted in another thread? Your exemption allowances would be cut in half, therefore in theory, you could be turning over assets to the trustee - correct?

                        It would seem to me that not filing jointly would sort of defeat the purpose in the long run, especially given what you have to prove.

                        Comment


                          #13
                          SMinGA

                          Yes, I understand the ruling of being able to file BK following another BK - however there is a specific ruling that states one cannot get a discharge if BK is filed again within certain parameters. I know I read that somewhere... ??

                          ETA: I found it... its 4 years following a Ch. 7 discharge... *WHEW* Thank God - you're good to go!

                          *thud* I must be blind - You posted it in your posting .... apologies to you :/
                          Last edited by Pandora; 07-09-2010, 06:27 AM.

                          Comment


                            #14
                            Yes & no. I would only be able to claim my exemptions - not able to double them for filing joint. But it would also only count 1/2 of the value of what we own jointly. Hubby's half would not be part of the BK estate.

                            Current vehicle has ~$2100 equity. By next spring that will probably be less. (*Our district uses NADA retail, really we could not sell or trade it for $2100 equity.) $1050 of that is mine.

                            The car I purchase will have some equity, due to downpayment. How that fairs against NADA retail is unknown at this point, since its still a month away & I'll make 6-7 payments on it before ch. 13. Hubby may be on the title of Veh 2, not sure. We're both on the title of the cash car we'll trade in (perhaps only $750-1000 at best trade in value, but should get something for it and if we keep it we'll have to keep it insured, etc. and don't need a 3rd vehicle). If he's on that title, only 1/2 the vehicle's equity will be mine.

                            But as a single filer I have $3500 vehicle exemption ($2450 left after Veh 1), $600 wildcard, and can use up to $5000 of the homestead exemption as additional wildcard.

                            All else that we own easily falls into GA's exemptions.

                            Originally posted by Pandora View Post
                            Ok, but if you didnt file jointly wouldnt the trustee have issue with trying to do exemptions as well as valuation of marital property - as posted in another thread? Your exemption allowances would be cut in half, therefore in theory, you could be turning over assets to the trustee - correct?

                            It would seem to me that not filing jointly would sort of defeat the purpose in the long run, especially given what you have to prove.
                            Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
                            (In the 'planning' stage, to file ch. 13 if/when we have to.)

                            Comment


                              #15
                              Yes, by my own research & working with an attorney we would have known by now if this was an issue.

                              Originally posted by Pandora View Post
                              SMinGA

                              Yes, I understand the ruling of being able to file BK following another BK - however there is a specific ruling that states one cannot get a discharge if BK is filed again within certain parameters. I know I read that somewhere... ??

                              ETA: I found it... its 4 years following a Ch. 7 discharge... *WHEW* Thank God - you're good to go!
                              Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
                              (In the 'planning' stage, to file ch. 13 if/when we have to.)

                              Comment

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