Filed Chapter 13 today. Is this a good deal?

[bling32]

Hello

I filed Chapter 13 today. I could not file Chapter 7 b/c I filed in 2005. I had almost $50,000 in unsecured debt and about $24,000 in secured debt. ( one car was crammed down from 13,000 to $7000. The other car remained at $12,000 balance but since only worth $10,000 the other $2000 went into the unsecured bucket. And interest rates reduced to 5% from 18%)

I am in a 0% plan with payments of $599/month for 36 months.

Does this sound like a good plan? I am happy to walk away from all the debt in 3 years. But, I was hoping to have payments around $500/month.

Let me know if this sounds okay.

[RunningMan]

If you are paying 0% to unsecured creditors, I am not sure how you could improve on the deal. However, you just filed and you are not confirmed yet. This is the plan your attorney will present to the trustee but your trustee may want to see a higher payment.

[bling32]

Is it typical for payments to go up? The attorney that I am using is one of the largest filers in the state so I would hope that he knows what he is doing. I did not want to pay $599.00 so I hope it does not get much higher. I was already shocked that he gave the high values on the cars (I thought it was the middle).

[minan]

Bling32: Our payment is over 2600 so enjoy the $599 if that's what your plan is confirmed at 3 years. Ours is high due to back taxes which the only reason we filed and the plan is 5 years. Not complaining as we want to pay back the taxes. Our % payback to unsecured is low so not complaining about that either.

Make sure you have a good atty and enjoy the low payment.

[RunningMan]

I don't know if it is typical, but ours went up. I was just pointing out that it could.

[momofthree]

Anytime you're paying 0% to unsecured, you're getting a SWEET deal. Others will be envious. Expect lots of PMs from people asking how they can get the same deal you did (I get them all the time!).

[bling32]

Thanks everyone! I will let everyone know if it gets confirmed according to the plan.

[BKParalegal]

Payments don't go up arbitrarily, they go up because you either under estimated a secured debt amount like mortgage arrears or taxes, or they go up due to an unallowable expense or an overstating of an expense.

If that doesn't occur then your payments will stay the same.

Good luck

[chicagoed195]

Your plan calls for the payment of $21,600 which is your remaining secured debt and the amounts to cover the trustee fees. There doesn't seem to me to be a much better plan than that. Good luck and hope it is confirmed.