Does anyone ever do better in a Ch13?

[steve24151]

My first post! I sit back and read all the post but I am concerned to hear how so many strugle during thier 13. Does anyone have a better time of it? I dont want to file if things will not be better then before.

[justbaby]

well for me things are progressively getting better. however, I just filed in July and just did my 341 mtg last week. It has definitely put my finances on track! No more threatening calls from creditors and most importantly I am able to stay in my home. I am sure each person has different experiences though.

[tobee43]

for us never....i was so concerned we'd be thrown into one it really made us ill.

but that's not the case for many that are certain about their future income and commit to the payment plans...for us we lost our jobs, could not maintain our house after 33 years due to illness and the job loss..so all we had left would be ss and a pension. that was it. it they threw us into a 13 we would have been out on the streets;

but those that have good jobs and just run into some financial difficulties, i suppose it's the solution. to me it's like someone having you by the neck for that 3-5 year time period. all of your dmi has to go to the trustee...every dime. that scared me!

it's difficult for us to get jobs so the idea of a payout of 3-5 years was not making us very happy at all. thankfully we weathered the storm of the chapter 7 just fine.

but once again, it depends on your own personal situation.

[jl37]

For me it has actually made things better. I was just confirmed friday on my 100% payback plan and I'm actually paying 300.00 less per month then i was pre filing to all related bills but now the payment also includes 26K of my student loans at 100%. In my case I always had lots of disposable income left over but had the credit card debt which was never going to be paid off without some sort of payment plan or consolidation. I tried debt settlement for 15 months but started getting served with lawsuits. I'm a high income earner and in our district in a 100% plan you only pay the amount over the 60 months plus trustee fee etc. So yes depending on the particular situation it is possible that a Chapter 13 can make things better.

In fact my whole process from filing to 341 to confirmation went off without one objection and was completed in 2 1/2 months. So I supposed at this point though very early I would be a positive story.

[jange]

Yes, I think we are better off. It hasn't been easy, but my budget has extra money in it. My phone never rings unless it is someone friendly on the other end. I can sleep at night.
I regret that we got in this situation that we had to file, but I don't regret filing. we should have done it a few years ago.
filed 1/11/10
confirmed 7/22/10

[tobee43]

jange....just curious, and it's most likely because i haven't but a small clue about chapter 13's...you say you have extra money in your budget right? i thought ALL DMI was supposed to go into the payment plan....????

i have even heard that if you do get even the slightest raise you must notify your trustee and they take even that?? now, what i have been told, may have just been scare tatics...however, it was my general understanding that everything must go into the payoff.

could you explain how that works?

[newbie2]

We tuck away money for emergencies by watching our budget very closely and cutting corners everywhere we can. Food, auto repairs, clothing..those are all areas that you can nip some money from and tuck it way.

No tobee43, not all trustees take every bit of a slight raise. Even for those of us who have to send in our income tax returns each year it doesn't necessarily mean that the trustee will want more money if they see a raise. We've send in 2 returns showing a bit of an increase in income and haven't heard a peep from the trustee. After all, they do know that the cost of living has increased.

We are just about 6 months shy of completing our plan, and during the last 4 1/2 years have replaced a garage door, major appliances, and had some hefty auto repairs. All of this was paid for with cash that was in our emergency fund. Only once did we have to go the the trustee to skip 2 payments because of a repair that was way above what we had saved. (That was a relatively painless process also.)

I wish everyone who had to file for a Chapter 13 did so without hearing all of the scary misinformation.

[Pandora]

jange....just curious, and it's most likely because i haven't but a small clue about chapter 13's...you say you have extra money in your budget right? i thought ALL DMI was supposed to go into the payment plan....????

i have even heard that if you do get even the slightest raise you must notify your trustee and they take even that?? now, what i have been told, may have just been scare tatics...however, it was my general understanding that everything must go into the payoff.

could you explain how that works?

tobee...

I think they meant that they have budgeted extra money into their plan, be it through groceries, car expense money, etc... they may not be spending the actual amount claimed, therefore making it possible to save some money each month. For us - we've been allowed to save for birthdays, Christmas, and even had savings put in there (although each are only about $50 a month, respectively). Trustee had no issue with any of it.

As far as the trustee taking every dime.....yes and no. Some trustees allow you to keep your pay raises (if yearly, like COLAs) as well as if you go up in pay from switching jobs to even your tax returns. It just depends on your situation and your trustee. Usually from what I understand a 10-15% pay increase wont be touched, but anything over that could be - again it depends. If it does, then you adjust your schedules accordingly and try to keep as much as you can, within the limits of what the trustee will allow - anything left over over and above will be devoted to your payback.

[tobee43]

tobee...

I think they meant that they have budgeted extra money into their plan, be it through groceries, car expense money, etc... they may not be spending the actual amount claimed, therefore making it possible to save some money each month. For us - we've been allowed to save for birthdays, Christmas, and even had savings put in there (although each are only about $50 a month, respectively). Trustee had no issue with any of it.

As far as the trustee taking every dime.....yes and no. Some trustees allow you to keep your pay raises (if yearly, like COLAs) as well as if you go up in pay from switching jobs to even your tax returns. It just depends on your situation and your trustee. Usually from what I understand a 10-15% pay increase wont be touched, but anything over that could be - again it depends. If it does, then you adjust your schedules accordingly and try to keep as much as you can, within the limits of what the trustee will allow - anything left over over and above will be devoted to your payback.

so really between what newbie2 and you have both experienced it appears that it may very well be at the trustee's discretion?

the key appears to try and squeeze savings out of your expenses. i would sometimes that might be so difficult to do. example is..when we moved here we were told what the electric ran monthly....about 4 months later it doubled!! it was because the utility company (and i found this so difficult to believe, but it was true)...got an increase. of course our neighbors...mostly between the ages of 30-40 years old struggling like crazy people to keep a roof over their heads...now were also dealing with double bills....i have the kids from next door come over here in the afternoons to help their parents keep down their electric bill (shoot and i HATE kids) when it gets really hot. we at least can cover it, although it wasn't expected.

it's just what do you do when something like that happens to you?

i just had visions of the roof needing to be replaced and no savings or money to be allowed to fix it.

[Pandora]

so really between what newbie2 and you have both experienced it appears that it may very well be at the trustee's discretion?

the key appears to try and squeeze savings out of your expenses. i would sometimes that might be so difficult to do. example is..when we moved here we were told what the electric ran monthly....about 4 months later it doubled!! it was because the utility company (and i found this so difficult to believe, but it was true)...got an increase. of course our neighbors...mostly between the ages of 30-40 years old struggling like crazy people to keep a roof over their heads...now were also dealing with double bills....i have the kids from next door come over here in the afternoons to help their parents keep down their electric bill (shoot and i HATE kids) when it gets really hot. we at least can cover it, although it wasn't expected.

it's just what do you do when something like that happens to you?

i just had visions of the roof needing to be replaced and no savings or money to be allowed to fix it.

Exactly.....not all 13 plans are going to make you wear rags and eat rice and beans for 5 years . If they do, then something went wrong in your schedules / plan because its not meant to be a punishment.

Have you checked into going on the budget billing cycle for your electric? That helps alot, same amount every month and it usually offsets whatever remaining balance you have throughout the year between summer and winter. Our house is 2200 sq ft - we have old baseboard electric heat - and 6 (yes SIX) A/C window units... our electric bill has never been more than $320 at any given time, last month it was $150 - running every A/C and me being home all day. Our budget monthly is roughly $230.

Here's some $ saving tips:

Use a dehumidifier in your home along with your A/C in the summer- it helps to cool the air quicker. If you have window units - get the Energy Star ones that shut off completely when the temp gets to where it needs to be (vs. the old ones that keep running the fan, but not the compressor).

In the winter - get some humidifiers (the kind that blow evaporated cool air - not mist and not warm vaporizers) and set them up throughout the house (we have 4 running). Our house stays a nice 68-70 year round in the summer and winter. Using a humidifier, you can turn your thermostat down about 2-5 degrees because the cool moisture will raise the humidity in your home, making it feel warmer .

Change your lightbulbs from regular to energy saving ones. They have daylight, softwhite and regular now in the stores. You cannot imagine how much this saves in electricity. Our entire house, including flood lights outside - are all the CF bulbs. To run our entire house for lights alone if I turned on every single lamp, light and flood light - is less than 600 watts! That equates to running 1 standard 60 watt light bulb for 10 hours - or 10 standard 60 watt light bulbs! I believe we have just in the house alone about 30 bulbs - outside the house we have 4 flood lights.

Weather proof your home - seal all gaps, cracks, etc. Seal around doors, windows and surprisingly..electrical outlets! So much air escapes into homes this way (and out of...)

[tobee43]

Exactly.....not all 13 plans are going to make you wear rags and eat rice and beans for 5 years . If they do, then something went wrong in your schedules / plan because its not meant to be a punishment.

Have you checked into going on the budget billing cycle for your electric? That helps alot, same amount every month and it usually offsets whatever remaining balance you have throughout the year between summer and winter. Our house is 2200 sq ft - we have old baseboard electric heat - and 6 (yes SIX) A/C window units... our electric bill has never been more than $320 at any given time, last month it was $150 - running every A/C and me being home all day. Our budget monthly is roughly $230.

Here's some $ saving tips:

Use a dehumidifier in your home along with your A/C in the summer- it helps to cool the air quicker. If you have window units - get the Energy Star ones that shut off completely when the temp gets to where it needs to be (vs. the old ones that keep running the fan, but not the compressor).

In the winter - get some humidifiers (the kind that blow evaporated cool air - not mist and not warm vaporizers) and set them up throughout the house (we have 4 running). Our house stays a nice 68-70 year round in the summer and winter. Using a humidifier, you can turn your thermostat down about 2-5 degrees because the cool moisture will raise the humidity in your home, making it feel warmer .

Change your lightbulbs from regular to energy saving ones. They have daylight, softwhite and regular now in the stores. You cannot imagine how much this saves in electricity. Our entire house, including flood lights outside - are all the CF bulbs. To run our entire house for lights alone if I turned on every single lamp, light and flood light - is less than 600 watts! That equates to running 1 standard 60 watt light bulb for 10 hours - or 10 standard 60 watt light bulbs! I believe we have just in the house alone about 30 bulbs - outside the house we have 4 flood lights.

Weather proof your home - seal all gaps, cracks, etc. Seal around doors, windows and surprisingly..electrical outlets! So much air escapes into homes this way (and out of...)

while i do LOVE and make wondrous rice and beans....you are correct...that was exactly what i was visualizing about a chapter 13....

that's another thing...when i figured our food cost...little did i know food cost over double here!! even the trustee's office questioned our food cost amount and thought it was our clothing...LOL!! i'm like NOOOOO...i can feed us on less than $300 a month...at the time i was using my old budget. however, now getting to know the area better, i got it back down. i have found open markets to get cheaper fruits and veggies...we get our proteins in other ways than expensive fatty meats etc. (just wish i had more money for grey goose..LOL...i guess that will come one day..you think?).

great tips on energy savings!! with winter fast approaching i think you should post that separately to help others......actually, right now we are looking into this "thing" you know me...i'm usually NEVER at a loss for words...but it's a thingy...that goes on your electrical box...it cost approx. 400.00...our HOA president got one and attached his a/c to it...his bill was only $180 last month while most everyone ran well over $300.

it's only two of us here...we put down tile and ripped out the carpet to help with the a/c which runs in this area approx. 10 months a year. so while next door is running $350...we are running at tops just under $300. so we are thinking about getting that thingy...actually looking into this week.

[newbie2]

the key appears to try and squeeze savings out of your expenses. i would sometimes that might be so difficult to do. example is..when we moved here we were told what the electric ran monthly....about 4 months later it doubled!! it was because the utility company (and i found this so difficult to believe, but it was true)...got an increase. of course our neighbors...mostly between the ages of 30-40 years old struggling like crazy people to keep a roof over their heads...now were also dealing with double bills....i have the kids from next door come over here in the afternoons to help their parents keep down their electric bill (shoot and i HATE kids) when it gets really hot. we at least can cover it, although it wasn't expected.

it's just what do you do when something like that happens to you?

i just had visions of the roof needing to be replaced and no savings or money to be allowed to fix it.

We do the same thing as other people do (non Chapter 13'ers). We go without. Really, it's no different than most people who budget for emergencies and get by without credit. What would YOU do if you needed to replace a roof? You would use your emergency fund or go without (or use credit).

Frankly, Chapter 13 is an excellent course in financial management and not the scary place that you make it out to be.

[tobee43]

We do the same thing as other people do (non Chapter 13'ers). We go without. Really, it's no different than most people who budget for emergencies and get by without credit. What would YOU do if you needed to replace a roof? You would use your emergency fund or go without (or use credit).

Frankly, Chapter 13 is an excellent course in financial management and not the scary place that you make it out to be.

newbie2...i'm still scare of it...but i think much of that has to do with our "life's" position. we are past are high earning "years" and on the down swing of our lifetimes.

i would like to remind some of those thinking or feeling badly whether filing chapter 7 or 13...life sometimes just throws you curb balls and you have to catch them the best way you can.

as far as financial managment...i agree for many that is an excellent point. however, our going down the tubes per sa, had nothing at all to do with poor money management...it was simply job loss and illness. actually, we had 5 more years to an "ideal" retirement before we got hit so hard.

after going through 40 years of savings...we had no way to save our home of 33 years without our jobs...even without our mortgage payment the taxes and area we lived in were far to expensive without employment. so much for well laid plans.

so, for me, with such an uncertain future...newbie2....i'm still shaking in my shoes at the thought of being tied down to a payment plan that i might not be able to maintain.

[newbie2]

newbie2...i'm still scare of it...but i think much of that has to do with our "life's" position. we are past are high earning "years" and on the down swing of our lifetimes.

i would like to remind some of those thinking or feeling badly whether filing chapter 7 or 13...life sometimes just throws you curb balls and you have to catch them the best way you can.

as far as financial managment...i agree for many that is an excellent point. however, our going down the tubes per sa, had nothing at all to do with poor money management...it was simply job loss and illness. actually, we had 5 more years to an "ideal" retirement before we got hit so hard.

after going through 40 years of savings...we had no way to save our home of 33 years without our jobs...even without our mortgage payment the taxes and area we lived in were far to expensive without employment. so much for well laid plans.

so, for me, with such an uncertain future...newbie2....i'm still shaking in my shoes at the thought of being tied down to a payment plan that i might not be able to maintain.

I don't get it. You filed for a Chapter 7, and are discharged. You don't have to file for a Chapter 13. Those of us that did are happy for the opportunity to take care of our financial house and start anew when the plan ends. We all remember those first couple of months and how scary it is to file. Now, we help each other out by reassuring those that are going in to a Chapter 13 that the big monster in the room is really quite the pussycat.

[tobee43]

I don't get it. You filed for a Chapter 7, and are discharged. You don't have to file for a Chapter 13. Those of us that did are happy for the opportunity to take care of our financial house and start anew when the plan ends. We all remember those first couple of months and how scary it is to file. Now, we help each other out by reassuring those that are going in to a Chapter 13 that the big monster in the room is really quite the pussycat.

i not only filed but as you indicated i'm discharged. i'm just asking about 13 to help get a better understanding...

i think it's commendable that you are getting your "financial house" in order. some really need to do that, it is wonderful that you have been allowed that opportunity. some of us will never have that opportunity again. and, perhaps threads like this, also dispel misnomers such as how i view 13's.

remember the OP's question...

Does anyone ever do better in a Ch13?
My first post! I sit back and read all the post but I am concerned to hear how so many strugle during thier 13. Does anyone have a better time of it? I dont want to file if things will not be better then before.

one also needs to know and understand there may be other options.