Considering 13 and had ?

[911mom]

Hi..new to the forum...must say the information is great!! Had a few ?s and thought i'd throw them out...i understand i can probably still contribute to my retirement saving through my employer according to what i've read...but what about credit union savings? And would i be allowed to keep paying my small loan that i have through my credit union? Want to keep this as private as possible, and didn't want to have to inform my employer if possible...thanks for the encouraging posts here

[911mom]

Oh, and can your house insurance and car insurance be cancelled due to filing?

[momofthree]

You will be allowed to save money by trimming back your expenses and spending less than your budget calls for (for example, if your schedule J lists $800/mo in groceries and you only spend $500 one month, you can save the extra $300 and no one will be the wiser). However, you will not be allowed to add "savings" as a line-item expense on your schedule J.

In the same manner, you can pay back any other debt you want by scrimping and saving in other areas (see aforementioned grocery expense illustration), but you cannot pick and choose which debts to pay in full thru your ch.13 payment plan, and you will not be allowed to list this one debt as an expense on your schedule J unless it is a secured debt.

[911mom]

Thanks so much for the info.....have another ? I pay the mortgage and had it Quit deeded to me and in the divorce decree it states that I keep that property and mortgage...but I never re-financed in my name only...stupid decision I know, now I can't afford to re-finance in my name only...I have always paid the mortgage on time, no problem with that...so I guess there is no way that my ex won't be notified about my filing Chap 13? Just trying to keep this as private as possible...

[LadyInTheRed]

And would i be allowed to keep paying my small loan that i have through my credit union? Want to keep this as private as possible, and didn't want to have to inform my employer if possible..

Even if you keep paying on the credit union loan, the loan will have to be listed in your petition and the credit union will receive notice of your BK. It is possible your trustee will require you make your plan payments by wage garnishment (varies by district), in which case your employer would find out you filed.

Regardless of who finds out about your BK, hold your head high. You have nothing to be ashamed of.

[lillymarlene]

Before filing chap 13, I had a small line of credit with a credit union, and maybe I misunderstood, but I thought I had to stop paying this along with my other unsecured debts. Maybe someone with more experience would know, but I thought if I kept paying certain creditors over others, that it would show preferential treatment.

[espo1357]

Hi..new to the forum...must say the information is great!! Had a few ?s and thought i'd throw them out...i understand i can probably still contribute to my retirement saving through my employer according to what i've read...but what about credit union savings? And would i be allowed to keep paying my small loan that i have through my credit union? Want to keep this as private as possible, and didn't want to have to inform my employer if possible...thanks for the encouraging posts here

Keep everything low key in a chapter 13. I would be careful hiding money through savings in accounts like retirement or banking accounts, because it can be tracked. Save cash is the best way to go, and then when you get the discharge you can do as you please.

Just my opinion. I have been in this 13 for about 2 years now, and its not easy, and I don't want to give them any reason to drop me (even though I have stayed under that radar because I pay on time, every month).

Another thing is to not tell anyone about your situation, friends and family included. Most people are not smart enough to keep their mouth shut. And people are just not very smart imo.

[LadyInTheRed]

Before filing chap 13, I had a small line of credit with a credit union, and maybe I misunderstood, but I thought I had to stop paying this along with my other unsecured debts. Maybe someone with more experience would know, but I thought if I kept paying certain creditors over others, that it would show preferential treatment.

If you pay a single creditor $600 ore more within 90 days before filing, that payment is a preference and the trustee can get the money back from the creditor to be distributed to all of your creditors. I believe the OP's question has to do with continuing to pay the credit union loan after filing.

Keep everything low key in a chapter 13. I would be careful hiding money through savings in accounts like retirement or banking accounts, because it can be tracked. Save cash is the best way to go, and then when you get the discharge you can do as you please.

Just my opinion. I have been in this 13 for about 2 years now, and its not easy, and I don't want to give them any reason to drop me (even though I have stayed under that radar because I pay on time, every month).

As long as you were honest in your petition and report increases in income as required, there is no reason you can't save money in whatever type of account you want.

[lillymarlene]

I'm not trying to "interfere" here with the OP's question, but can you pay back any creditor that you want AFTER filing a 13?

[LadyInTheRed]

I'm not trying to "interfere" here with the OP's question, but can you pay back any creditor that you want AFTER filing a 13?

Sure. If you can find room in your budget. But, it might be a good idea to wait until after you are confirmed to make any payments, just in case the trustee looks at your account statements. Better yet, wait until you finish your plan. During your Chap 13, you're better off saving whatever "extra" money you can. You need to have cash available in case of emergencies. Paying anything you don't have to pay during a Chap 13 is a bad idea.

[lillymarlene]

"Paying anything you don't have to pay during a Chap 13 is a bad idea." Thanks LadyInTheRed. That's for sure, if I was able to pay most of them back the way they wanted, I probably wouldn't be here. LOL

[lrprn]

If you pay a single creditor $600 ore more within 90 days before filing, that payment is a preference and the trustee can get the money back from the creditor to be distributed to all of your creditors.

A quick clarification for our newer members - if you plan to keep a secured asset after filing, you can pay a *secured* creditor the normal monthly payment owed. If it's over $600 total dollars during the 90 days before filing, that's fine.

Preferential payments come into play when you pay a *non-secured* creditor or collector more than $600 during the 90 days before filing. This is when your trustee may go after whatever you paid to distribute the amount you paid over $600 equally among all your creditors who file claims.

[LadyInTheRed]

A quick clarification for our newer members - if you plan to keep a secured asset after filing, you can pay a *secured* creditor the normal monthly payment owed. If it's over $600 total dollars during the 90 days before filing, that's fine.

Preferential payments come into play when you pay a *non-secured* creditor or collector more than $600 during the 90 days before filing. This is when your trustee may go after whatever you paid to distribute the amount you paid over $600 equally among all your creditors who file claims.

Thanks, lrprn. I left out an important modifier.