Only 35% of Ch 13 replayment plans are successful--why?

[SinkingFast]

I don't think you get to deduct the costs to sell if you plan on keeping the house. But I'm not real sure on that issue. So hopefully someone else with better knowledge will chime in.

In our case, we're giving up the house in BK. Attnys have all asked if we have any equity. Between what we owe, the Realtors' fees, associated doc fees and closing costs, with the current offer we have, we woulda cleared $5K. But now we have all kinds of late fees, etc, piling up eating away at the $5K. So the attnys say, "OK. No equity." Because by the time the Lender gets the house back and pays to sell it, they'll be in the same position as us. Maybe clear the mortgage and selling costs.

But just because you have some excess equity doesn't mean you'll have to go Ch 13.

Trustees cut deals all the time.

Say you do have $15K in excess equity. The Trustee could agree to settle with you for $5K cash, as an example, and even take the payments in installments interest free.

You really need to chat with several attnys in Consults and get their take on your particular situation. They know the Trustees and what the Trustees will and won't go for. You'll get a real good idea from chatting with attnys what you will need to do about your house.

[jane taylor]

I'm not sure where it was posted, but Minny made a suggestion on how to reframe this whole Chapter 13 thing--like a 60 month car payment (one HUGE car payment!!!).

Although I hate any of us ever got here in the first place, I am sleeping at night, and I know that my bills are being paid. It is comforting to know that the attorney is held even more accountable now.

I wish we could've done a 7, but this is much better than the enormous amount of juggling each week just to scrape by. We are actually saving a little bit of money. It has been easier since my husband got a raise and we are also being so much more careful.

[Jman30]

I think it all comes down to money. My wife and I are raising our two kids and are in Month 16 of a 48 month Chapter 13. Our house and cars and debt are all included in the Chapter 13. But once the Chapter 13 is paid, we only have around $600 left a month. After gas, food, clothes for the kids, holidays, birthdays....we have nothing left.

If anything major happens in the next two years, I am screwed. I am just hoping all the appliances keep working and nobody gets hurt.

I think they fail because it is virtually impossible to raise a family when the court takes every single dime of disposable income.