How's life in a Ch13

[buffetbuster]

I'm curious how those of you who are in a CH 13 are living life. Are you able to still have fun, buy your kids toys, go out to dinner, etc as well as pay the Trustee?

[momofthree]

Have fun? Absolutely. We've discovered many ways to have fun that require $0. Though we've also been able to take family vacations, go camping, visit theme parks, etc. We just have to save up the cash ahead of time by cutting back in other areas.

Buy kids toys? Yes, within reason. They get birthday and Christmas gifts and a meager allowance that they can choose to save up to buy toys in between holidays. Most of their toys are purchased at 75% off during clearance sales. If you're used to laying out hundreds of dollars on a regular basis, you'll have to change your mindset, as will they. It'll be good for everyone.

Out to dinner? We choose to forgo eating out as we build up our emergency fund. It's worth it to me to home-cook all our meals (and healthier too!) in order to save the money for emergencies. That said, we do splurge in other areas--like we have a gardener mow our lawn and monthly pest control service. It's all about your priorities. You will still have the ability to eat out, but you may choose to do it less than you used to.

Life goes on in ch.13. Most of us are much more comfortable in our ch.13 than we were for the years leading up to it, when it was all about robbing Peter to pay Paul, doing balance transfers to avoid having to make minimum payments. Paying the cards, only to turn around and charge groceries and gas. Having zero in savings....

Now, we pay cash for everything. We've learned the difference between WANTING something vs. NEEDING something. We can buy new clothes for our kids when needed. Pay medical expenses. Do a home repair. We have over $3000 in savings--something we had NEVER had before filing bk--EVER. Life is good. Best financial decision we ever made! It's not the hell that people (usually who've never filed a 13) make it out to be.

[bling32]

Life for my family is great! No more calls from creditors or repo men at the door. I had to program "Bill" into my contacts on my phone so I wouldn't answer when they called. My 12 year old asked me once, " Mom why does Bill keep calling you?" I found it so funny. Seriously, we are in a better place. I can afford my payment and we have money for emergencies. No more late payment fees or money to western union payments. All that money is now in my pocket. And, we are even planning a vacation this summer using cash.

My attorney was good. He helped with a budget that worked for our family. We even found ways to reduce utilities by turning things off and adjusting cable packages, cellphone plans so we had more money to save.

Peace of mind is priceless and my chapter 13 has done this for me. I only wish I had done it sooner.

[Pandora]

Echo the others - its really not as bad as people think it is, of course that also depends on what your lifestyle was before filing to what it will be / is after. We live about the same as we did before we filed really, except we've had to save up a bit harder for things like vacations. We went nowhere last year due to job loss the previous year, but this year we've already got trips planned from June - October, all pre-paid

We do like Momofthree does - buy everything in clearance for the following season / year - its the best way to purchase new clothing that I can assure you as I've done it for the past 20 years this way, and 90% of the time I can get brand new clothing cheaper than getting it at a high-end thrift store. After winter / Christmas we hit the clearance sections and stock up on winter items and any other clothing / shoes that will be needed for the upcoming school year. Clearance aisles usually run from December through beginning of April / mid april, with most items being marked down 80-90% by the time March/April hit. Then when fall comes around, we do the same with all the spring / summer clothes - these usually last until October / early November timeframe. Those $45 dollar jeans our daughter wanted are now $5-7 and she merely had to wait 3 months to get them; same with shorts. Teaching kids to shop this way has proven invaluable as every time we go into a store - any store (even Gamestop) - thats the first aisle the kids head to. Very important lesson our 20 y/o daughter learned when at home and now her friends ask her how does she have new clothes all the time when they cant afford it.

We also use coupons for anything we can, shop online as well - saving gas $ that way. I dont think in the past 5 or 6 years I've been Christmas shopping in actual stores more than a handful of times at best. I usually get much better deals online, free shipping, and on average 20-35% off the price of the exact same item I'd get in the store, all delivered right to me for free.

[IamOld]

Very encouraging guys!!! From a future 13-er :-)

[buffetbuster]

Thanks for all your insight...it does make me feel more comfortable. We haven't paid on our credit cards for about a year now and have been living strictly off cash. We don't go on big spending sprees, buy luxurious things, I just want to be sure that I can still live a comfortable, happy life and most importantly give me daughter the things she deserves.

[systemslt]

it can be what you make it.

study BK as if your future depends on it. because it does.

this way you will not pay more or longer than you have to on your 13 plan.

make some changes.in how you spend your money and you will be fine.

[systemslt]

Thanks for all your insight...it does make me feel more comfortable. We haven't paid on our credit cards for about a year now and have been living strictly off cash. We don't go on big spending sprees, buy luxurious things, I just want to be sure that I can still live a comfortable, happy life and most importantly give me daughter the things she deserves.

you may still have plenty of time but 1 year no pay watch out for lawsuits. if you are properly served with a summons to answer to a attorney the clock is ticking and choices need to be made or others will make them for you.


learn how to fight off collectors as long as possible.

[lrprn]

We're nearing the end of our Ch 13 and after reading momofthree's and Pandora's posts I can say "Ditto!" as well. We have tremendous peace of mind now. We pay cash for what we want. We control our finances now, our finances don't control us. Filing Ch 13 was the best thing we ever did for ourselves.

Take the time to learn everything you can about Ch 13 and then set up free or low cost initial interviews with a minimum of 3-4 experienced bk lawyers in your area. Collect all your current income stubs from all sources, your secured and unsecured debts, and your average living expenses. Take those to each of the meetings and discuss your options.

Hiring a good bk lawyer who understands Ch 13s in and out, knows the customs and case law decisions that are followed in your local court, and then can create a livable Ch 13 plan that can work for 3-5 years is tremendously important. Retaining a bad, inexperienced, or lazy lawyer all too often means you may get a Ch 13 plan that won't work for you over the long haul no matter how hard you try. Do your research because no one but you can save yourself from a lot of heartache and frustration from the very start. Good luck and keep asking questions here. We'll help you figure things out as best we can.

[indebt00]

This was exactly us...robbing peter to pay paul and exactly what you said...living with credit cards.
The freedom from living like that is what ch 13 has given us....lessons on budgeting and really understanding that we have to live within our means. wanting is completely different than needing.
not to say it isn't hard...I miss having the ability to charge whatever I want sometimes BUT then I look where that got me and my DH and I both agree this lifestyle is much better.
Its not as bad as most people make it out to be

Life goes on in ch.13. Most of us are much more comfortable in our ch.13 than we were for the years leading up to it, when it was all about robbing Peter to pay Paul, doing balance transfers to avoid having to make minimum payments. Paying the cards, only to turn around and charge groceries and gas. Having zero in savings....

Now, we pay cash for everything. We've learned the difference between WANTING something vs. NEEDING something.
Best financial decision we ever made! It's not the hell that people (usually who've never filed a 13) make it out to be.

[randy5724]

Only been in 13 a few months but, actually have money for food and gas, after 2 months have money in savings. I have thank my lawyer for helping us make a realistic budget, then we have trimmed expenses from that. Past few months have been much better than past year before filling.

[shark66]

One of the things that Ch.13 is excellent for is making one realize where their money goes, as opposed to where it should go...

The structure of one's debt may also be a "make or break" point. It's fairly easy to learn to live without credit cards, but it's way more difficult to keep oneself afloat if there's an albatross-like mortgage payment, or an ongoing medical treatment that keeps on creating expenses...

If anything can teach one how to properly budget themselves, CH. 13 most certainly can...

My $0.02 only...

Good luck to us all.

[MOMof3]

We are in our last year of a five year plan and overall, it really hasn't been horrible. We've had our ups and downs, but I feel like I've gained such valuable lifelong knowledge about money and life, etc... My kids are still spoiled--LOL, I won't lie, but they have also learned many lessons that I wish I would have learned growing up--such as making good choices, patience and saving, finding good bargains and making your dollar stretch! They have seen us struggle, and have heard mommy say things like, this week is a mac n cheese week--and they might roll their eyes, but they understand too--that money doesn't grow on trees and when the bank account is low, mommy can't just pull out a credit card to buy that new whatever they want item, we have to wait. If I knew then, what I know now, I never would have been in the situation to NEED to file a chapter 13 to save my house and provide a home for my kids. I know I won't ever be at that place again & hopefully my kids won't ever be either. Anyway, my only advice would be to get a GOOD LAWYER and make sure you can live & SAVE within your plan. We have had emergency surgery, missed work, and TWO babies born w/12 weeks time off for both DURING our plan and we were able to get through it!! Was it easy--definitely not--but we did make it and are stronger because of it. Good Luck to all of you just starting out! This forum is filled with so much advice and hope. Hang in there and don't be afraid to ask questions.

[IamOld]

You are an inspiration!!!! Thank you!!!

We are in our last year of a five year plan and overall, it really hasn't been horrible. We've had our ups and downs, but I feel like I've gained such valuable lifelong knowledge about money and life, etc... My kids are still spoiled--LOL, I won't lie, but they have also learned many lessons that I wish I would have learned growing up--such as making good choices, patience and saving, finding good bargains and making your dollar stretch! They have seen us struggle, and have heard mommy say things like, this week is a mac n cheese week--and they might roll their eyes, but they understand too--that money doesn't grow on trees and when the bank account is low, mommy can't just pull out a credit card to buy that new whatever they want item, we have to wait. If I knew then, what I know now, I never would have been in the situation to NEED to file a chapter 13 to save my house and provide a home for my kids. I know I won't ever be at that place again & hopefully my kids won't ever be either. Anyway, my only advice would be to get a GOOD LAWYER and make sure you can live & SAVE within your plan. We have had emergency surgery, missed work, and TWO babies born w/12 weeks time off for both DURING our plan and we were able to get through it!! Was it easy--definitely not--but we did make it and are stronger because of it. Good Luck to all of you just starting out! This forum is filled with so much advice and hope. Hang in there and don't be afraid to ask questions.

[lrprn]

MoMof3, your reply was one of the best I've seen about the realities of living day to day in Ch 13 and how the important life lessons learned help everybody in the family. Thank you so much for sharing!