So nervous!!!!

[911mom]

Met with attny to review info right prior to filing...she estimates payment of 465$ bi monthly worst-case scenario...
Yikes...that's alot more than i was planning!! Of course, this is if i get into a 100% payback program....just curious, is it usually 100% payback? What percentage roughly on here, have been stuck in 100% payback??? I just don't want to be as strapped
for daily living expenses in a bankruptcy, as I was without one...that may not make sense, LOL. But I was really hoping to have a little lee way to possibly put some savings aside for emergencies, even if it was 25-50$ a month... of distressed about this right now... Someone please give me some hope that sometimes the payment is lower...that was the worst-case scenario...she says she's hopes to get the program less than 100% payback..

Thanks...and just wanted to say all the info on here has been great and gives me hope

[911mom]

Lol..sorry, don't know why the type is double spaced..

[LadyInTheRed]

Percentages of payback in a Chap 13 vary according to the facts of each case. The percentage other people pay in their plans really is not relevant to your case. A plan pays 100% to unsecured creditors if you have enough disposable income.

A Chap 13 is not supposed to be a walk in the park. But, it should be liveable. If it isn't, one of the the following is probably happening:

1. You are trying to keep assets you can't afford
2. You need to work harder to live within your means
3. You don't have enough income to fund a chap 13 and should be in a 7 (possibly because of item 1)
4. Your attorney hasn't done her job in proposing a reasonable plan.

Without a lot more information about your income, household size, secured and priority debt and assets, it's impossible for us to know whether the attorney's estimate is high. You may want to consult with a couple of more attorneys to see if their estimates are in the same ballpark.

[911mom]

Thanks LITR....that's what I was wondering...do different attnys give you different payment plans? Does is vary widely or am I wasting my time consulting with other attnys? that was just preliminary estimate, I'm supposed to turn all my documents in and pay for filing in the next couple of weeks...

[moe]

Yes, this is exactly my fear. I didn't realize the attorneys do the estimate of the payback for you! Doh!

Is your payback close to your current payback? How much do you pay now? Is it close to what you are paying on your credit cards at the moment?

I see you have 'mom' on your name. It's really worrying when you have kids and don't want to impact their needs with this bankruptcy issue.

Good luck.

[911mom]

The estimated payback quoted from my attny is if I get a 100% payback plan...I'm hoping for less than that...it would still be lower than the minimums I'm paying now, but I am borrowing from Peter to pay Paul now, and I won't be doing that when I file..that's one reason I'm nervous...just so ready to get a finalized payment plan and know what I have to do the next 5 years..and yes, I have one child, my son will be 10 Sept 11th..he was born the morning of 9/11 2 hrs before the WTC was attacked on that very day...I do worry that I won't be able to give him some of the things he wants the next few years, but I just have to pray and know it won't last forever....

[moe]

Yeah, it won't last forever.

It's just tough because a lot of things I spend on my daughter are to help her with confidence and to keep her calm and busy. You know how kids are. She doesn't have nintendo or electronics or things like that. It's mostly classes, etc. She'll manage but you hate to shortchange your kid in terms of helping them to grow and be happy.

I was looking at our grocery bill and realizing a lot of the expense is I always buy fresh food and fruits and vegetables. That's the biggest expense. I've been trying to lower the grocery bill and it's amazing how much more unhealthy our diet got. Of course, my kid is happy because we are eating nothing but pasta--mac and cheese for dinner even! But ugh!!! Not healthy.

I look forward to squash season. Squash is the cheapest healthy food.

[IamOld]

moe you're quite right - in our wonderful country now eating healthy seems to be a luxury. But that is one thing I cannot do is not buy veggies and fruit. It's absolutely insane that the corporate crap is cheaper than healthy stuff. Although I don't know if you have Wegman's (i know there is stop and shop) but believe it or not CANNED veggies are just as good/healthy as frozen ones, and they tend to be relatively cheap.

[moe]

I love Weggies but don't live near one now.

I admit to loving Farmer's Markets. I am good at bargain shopping there. I even negotiate at the end of the day if there is not a line (which there usually is).

Frozen veggies are extremely healthy and yes, they are cheaper. My kid won't eat frozen broccoli. She's just so used to fresh.

I'm going to work on my bargain veggie shopping. I think there's got to be a way...

Sorry...I don't mean to hijack the thread. This is an important topic and I unfortunately don't know enough. I just wanted to commiserate with 911 Mom since this is really a tough issue--how do we make it doing Chapter 13 and raise a kid with all the emergencies and dribs and drabs of expenses that involves. Like most people, I am always looking for a deal. This year, her school shoes are also snow shoes! I got her sneakers that can go in the snow. I was very proud of myself since we might be able to get away with no boots or we can delay boots.

[IamOld]

Hi Moe - I like farmer markets too, but the one near me is more expensive than the supermarket....

[LadyInTheRed]

Thanks LITR....that's what I was wondering...do different attnys give you different payment plans? Does is vary widely or am I wasting my time consulting with other attnys? that was just preliminary estimate, I'm supposed to turn all my documents in and pay for filing in the next couple of weeks...

It is definitely worth consulting more than one attorney to find one you are comfortable with and who you believe will look at your finances and get you into the best plan they can. Different attorneys may analyze your situation differently. Some may propose a very tight plan that they know will get easily past a trustee. You don't want an attorney like that. You want one who knows the trustee and what they will and won't fight. You want one who will fight for you if your situations justifies it. None will be able to tell you exactly what your plan payment will be until they have collected and fully reviewed all of your financial information. That is unlikely to happen during a consultation. But, if you consult with several attorneys, you may start to see a pattern and can more closely investigate any differences. If you are consulting experienced and competent attorneys, there shouldn't be a huge difference in plan payment, but there will be some variation.

If an attorney says you will be in a 100% plan, make sure you understand why. In fact, when you do get to the point of signing your BK petition, you should make sure you understand everything in it. Part of your attorney's job to make sure you understand.

Unless you have a minimum that you have to pay to unsecured creditors because of non exempt assets, your plan payment will be equal to your disposable income plus whatever secured and priority debts are paid in your plan (that may be over simplifying a bit). You tell your attorney what your income and expenses are and your attorney will help you revise your budget if necessary. You then file your plan with the court. If the trustee has objections to any of your expenses, it's negotiation time. Some people find that what they consider reasonable expenses will not be considered reasonable in their Chap 13. Others have been spending so little while the struggle with debt, that they find they have more money to spend after filing. My plan payment includes my car payment and is less than half what my 2nd mortgage (stripping it) and unsecured debt payments were before I filed.

[moe]

Wow Lady in Red that advice wasn't for me but it was really helpful to me.

[LadyInTheRed]

Wow Lady in Red that advice wasn't for me but it was really helpful to me.

I'm glad you found it helpful. All posts on this board are for anybody who reads them, not just the person they respond to.

[Foofy610]

911Mom... We're in the same chapter of the bankruptcy book as you, just a few pages ahead. Our CH13 was filed August 31st. We're at 100% paying $1,087 monthly. First payment is due September 30th. My wife & I have been able to restructure & budget our finances in a way best suited to get us through the next 5 years. The people on this board helped me immensely!! I'll never be able to thank them enough.

Only a few weeks ago, I thought my head would explode. I was so worried about how we'd make our payments and still be able to live. Well... after analyzing our finances, I've downgraded my anxiety. As everyone here mentioned to me... create a budget and stick with it. I can't stress that enough. Even though our first payment isn't due for a few weeks, we've budgeted a weekly amount to make sure we'll have the payment ready.

If you need a "travel buddy" through this process, feel free to contact me. You will get through this. Just don't get ahead of yourself... like I did. Deal with issues as they happen. Take it one step at a time.

Take care.

[Guest123]

Our lawyer showed us how he came up with the plan payment. He showed us the money we should have based on a family our size for food, clothing, ect. Then we had to see if a 5year plan would pay for all of our secured debts. It was that simple for us. After it was all said and done we will only pay less then 5% to unsecured creditors.
But like others said all plans are not the same, the same can be said for lawyers.