What happens if we have another child?

[95kindebt]

Hubby and I are talking about having another child. How would this affect our chapter 13 plan? would our payment amount go down? Do you know if they'd allow us additional money to purchase the baby things we would need (our kids are older).

And NO we are not having another child just to get a reduced payment.

Thanks!

[justbroke]

This really depends on your District and specific Trustee. It also will be based upon what you're currently paying unsecured creditors. Life happens, and in a Chapter 13 it is expected that life will happen. Work with your attorney ONCE you are close to actually having the child. That means in third trimester, maybe at 32 weeks. You can't change the Plan until you actually have the child. The chances of you getting it modified in advance so that you can buy things for the baby pre-birth, are extremely unlikely.

However, you should be saving already. I shouldn't need to tell you this, but you should already be saving a good chunk every month and have a nice savings built up after being in Plan for a year or two. If you just got into Chapter 13 recently, you may want to rethink having a child. I know that's difficult, but it could mean dismissing your Chapter 13 and causing all sorts of other financial headache.

I'd consult with your attorney about the possibility of getting your plan modified and the impact on your overall Chapter 13 plan. It could be that the new child would make your plan infeasible and subject to dismissal anyhow.

[987654]

I agree with JustBroke on many points. Obviously, the responsible thing to do is calculate if you can afford another child...i.e. if you can make your plan work with the additional expenses. If you're already in a 0% or close to unsecured creditors then it's going to be an issue...not just for the Trustee, but for your budget in general, unless there are other places you can cut back to cover the new expenses.

Depending on your circumstances, however, it might just be best to discuss it with your attorney straight away. What is your insurance plan like? Are you going to have a deductible and a lot of co-pays that you are responsible for? If so, where will the money come from under your current budget? Since you're where you are, I'm sure you don't want to add to your debt and make things worse...

Taking the above into account, are you in a 3 year or 5 year plan? If you're in a 3 year plan and can stretch it to a 5 year, then you might be able to lower your monthly payment down enough to make it work, too.

I wish you the best of luck

[Flamingo]

Having another child is a personal decision. It all depends on whether or not one is able to afford another child and if that child can be properly cared for if there are financial problems. Only both of you know the answer to that. As stated, until the event takes place (i.e. birth of child), there is no financial event to change the plan. It can't be adjusted when someone is, say, 3 months pregnant and needs to start buying baby items or arranging for daycare to go back to work if that is necessary. The loss of any income cannot be adjusted until that time. With all that on the plate and since it could be a big monetary difference, this is something you will need to discuss with your attorney as right now it could throw your entire plan and financial situation off kilter depending upon your income, financial state at present and where you are in your Plan.

Whenever there are big financial decisions to be made in a Chapter 13, always consult your attorney.

[MOMof3]

I was pregnant when we filed and we were allowed to include all of our post-baby expenses including loss of income during maternity leave, daycare ($200/wk), and I believe $200/month just in added costs for diapers & formula. As usual, it probably depends entirely on your attorney and the court where you file. I just had another baby this year in January (my name should be momof4-lol). We decided NOT to file for an amended plan at this time. We've had raises & bonuses since filing and our attorney felt that filing for an amendment would potentially open up a can of worms--with only 17 months left, that is NOT going to happen, we are going to stay under the radar and out of trouble Since we have had pay increases, etc..., we will be OK with the added expenses if we weren't, we would file for an amended plan. We are only at 7% unsecured payback, so there isn't much room anyway.

[justbroke]

It's a different story when you're already pregnant and then file. Since a Plan is a "look forward" upon confirmation, it was reasonable to expect. However, if you are already "in plan" and then become pregnant, it is not the best time since modifying your plan requires a hearing and, in many cases, Trustee approval. (Unless you can overcome the Trustee's objections.)

As repeatedly stated... always consult with your attorney. Sometimes they can work magic.

[Flamingo]

And remember Plan modifications are not free...There will be extra attorneys fees - our attorney charged us $400 to file a motion to refinance in 2005 and buy out of our plan early (old law). Expect about the same charge or more for a modification or read in the information provided you when you obtained your attorney as to costs for added work/filing motions/filing amendments, etc., etc..

[95kindebt]

Thank you for all of your wisdom. We have been able to spend less on groceries and have a liveable plan. We pay $900 a month, but it's paying back about 50% of our debts under the plan. I don't have Pacer, so I am not sure to be exact. I know that before we filed, we had asked the attorney about wanting another baby, and he mentioned that it would be fine in our plan. Our insurance we only pay a flat $200 for the whole prenatal care, delivery and postnatal care.
Our attorney worked Magic with our plan, and since we're not paying our daughters preschool anymore, that freed up another $372. a month. I am a stay at home mom.
Thanks for your advice. I will consult my attorney. I am not sure we would ammend the plan anyway.

It's a 5 year plan, not a 3 year.