Savings allowed while in a 13?

[ylime]

We depleted our savings account when my husband was laid off and once we get back into a regular budget with our plan I'd like to start rebuilding that account. Are we able to include deposits to savings as a reasonable expense in our plan?

What about selling items on ebay, craigs list, or having a garage sale? Would we be allowed to keep this money?

[justbroke]

No. Savings are not a valid expense. You will need to learn how to budget and take the excess (surplus) from other valid and allowable expense categories, and create a savings with that.

If you're going to start selling your personal property and save the proceeds, you really need to speak to an attorney or find out your State's exemptions. Exemptions are what protect your property (cash and physical property) from being taken or liquidated in a bankruptcy. If you pile up cash in the bank, and based on your State's exemptions laws, you may lose it! Some States only allow $250 in cash! Others, like California, are much much much much more generous (with System 2).

[johninred]

No. Savings are not a valid expense. You will need to learn how to budget and take the excess (surplus) from other valid and allowable expense categories, and create a savings with that..

While I know you are 100% right it is interesting that many times it's a double car repair or some other event that sends people into the dreaded CC living situation and eventually into Chapter 13.

It seems silly that a certain level of savings can't be kept for a rainy day or that they would bundle a 'savings account' buffer into the payment itself where as usage could be approved by the trustee.

[NoTomatoCan]

While I know you are 100% right it is interesting that many times it's a double car repair or some other event that sends people into the dreaded CC living situation and eventually into Chapter 13.

It seems silly that a certain level of savings can't be kept for a rainy day or that they would bundle a 'savings account' buffer into the payment itself where as usage could be approved by the trustee.

Well, you CAN save, you just can't budget it in as a legitimate expense. Most folks have some padding here or there that they can use to help save, or they have some expected expenses that don't come due as planned.

[NowImDownInIt]

Like JB said, you can't budget to save, however, a good attorney will know how to pad your budget as to leave you a bit to save. You can sell things on Craigslist, eBay, after you are confirmed as far as I know.. I have done this but not on a regular basis.