Finally Filed Today

[minan]

Well, it's done. My attorney just sent me my case #. I've spent the last few hours crying, worrying about how I'll make the payment, my mortgage/HOA fees, plus food and utilities.

The payment includes all the back taxes owed for fed and state, car payment, student loan (balance will continue to be paid by me after 5 years end), and unsecured.

It is a high payment, however using my wages and some money from my savings account each month, I'll be able to make the payment.

Where's the relief I'm supposed to feel now? Why I am still crying?

[vicmost]

Don't quite know how to respond to this..
It's a big step for sure...Most of us are in the same boat as you (you're not alone)..
When I'm down I try to think aobut the positive things. As bad as things may seam I know I have it a lot better than some people...Count your blessings!

[momofthree]

Why are you having to take money out of savings each month to get by? Did your attorney use IRS standards for your expenses, or did you have to use lower numbers to qualify? If that's the case, you shouldn't be having to pay to the unsecured creditors...

[minan]

MomofThree, this is where I'm confused. My attorney is really nice and she has expended a lot of time on me. If I understood what my atty said includes about a 19% payback to unsecured.

My plan includes the priority back taxes, car payment, student loans. I'm asking questions and waiting to hear from her.

[Pandora]

its quite possible your payment to unsecured will be much lower than you're thinking once you're confirmed - then again, it could remain the same. Your plan payment may be so high due to secured items that must be paid in your plan given you have back taxes, etc.

Did you exempt 100% of your savings? It is a very bad idea to go into a 13 knowing you cannot afford it from the beginning and have to rely on your savings account for 36-60 months (depending on your plan); the trustee may not approve confirmation based on that information alone. What happens if something happens and you need $ to fix something? there goes your savings.

[minan]

Yes the savings is exempt. I agree that starting a 13 this way is not the way to go, however I had no choice to file. The IRS issued another levy and weren't willing to work with me or my tax atty. All the credit cards have jacked up their interest rates now to over 20-25% so now I'm getting jacked both ways.

I am getting now 30+ phone calls daily starting exactly at 8am everyday. I couldn't live with the constant stress and fear of the IRS.

I'm trying to understand what's causing the payment to be so high. I've already send my concerns to the atty. We just filed last night.

Does anyone know what I can do with the student loans? Would it be ok to call ACS-Education (loan servicer) and tell them I'm in a bk? The atty says the student loan doesn't start getting paid anything until month 48 and she thinks this is like being in forbearance.

[NoTomatoCan]

Does anyone know what I can do with the student loans? Would it be ok to call ACS-Education (loan servicer) and tell them I'm in a bk? The atty says the student loan doesn't start getting paid anything until month 48 and she thinks this is like being in forbearance.

It doesn't sound like there is anything for you to do with them. From what you said, they are included in the plan and get paid starting in month 48. Your attorney is right - they will automatically get put in forbearance. Interest will still accrue, but you will not be required (nor expected) to make a payment.

They will get notified of your BK along with your other creditors. If they call between now and when they receive notice of your BK, you can simply tell them your situation and give them your case number. Really no need to call them.

Being able to include the SL payments in month 48 is actually good. Many of us have to wait until after our plans are completed before we can begin paying them back. (Well, you can almost always pay them whenever you want, but just can't typically include them in your budget/expenses - so hard to scrape up that extra money)