Suspension of plan payments?

[greenthinker]

We are about 3 1/2 months into our plan, and are set to be confirmed on Nov. 23rd. We are in a 100% payback plan, and our payments are deducted from my biweekly paycheck. We recently had an emergency vet bill of $800, which just about wiped out any cushion we had in the bank. Now, we're terrified of having some other emergency come up, and have no way to pay for it. Neither of our families have the ability to help us, so that's out. I do have a corporate credit card, but I could get into big trouble if I use that for something not work-related.

I'm wondering about the possibility of requesting a 4-week suspension in payments to allow us to put aside an emergency fund again. Is that feasible? Or, will they only due that in the event of unemployment or something similar?

[mountanddo]

I don't think that an emergency fund would be reason enough for them to suspend your payments. You might have to wait until you actually have the emergency and then request it. How much would someone's emergency fund be is the problem. Since an emergency fund isn't considered an expense I would say they would not allow this. Others may have successfully done this and I'm sure if they have they will post. Good luck, it sucks to feel like you are waiting for another shoe to drop and have nothing if that does happen. Your thinking on not using the corporate credit card is smart. Don't want to add that into the mix.

I didn't realize that you could have BK payments deducted from your paycheck. I think I'll stick with mailing in the money order. I don't want my employer to find out I filed BK.

[Guest123]

We had a suspension but the trustee needed the reason to file it. I would agree that you would probably need to wait for an emergency to ask for an suspension.

[Flamingo]

You can always check with your attorney when you run into a financial snag during your Chapter 13 to see whether or not the trustee could allow a payment to be missed and tacked on to the end of your Plan. However, realize that all bills incurred by you after your filing date are your responsibility so, therefore, you will have to find a way to pay for them if they are unexpected and out of your budget. The only way to do that is to save whatever you can and always be prepared for something to happen because it will. I know how hard it is to cut back even further during a Chapter 13 and it really takes willpower but the next thing to go may be your car transmission or something else very expensive car-repair wise, your hot water heater or another major appliance blow out, etc. Budgeting is difficult and a Chapter 13 is the best budget teacher in the world as you will find out. But, again, if you run into financial problems where you don't think you will be able to make your plan payment, or any other payment to your mortgage or car that are listed with your Chapter 13, call your attorney immediately. Do not miss any payments associated with your chapter 13.

[oicu812]

dont be terrified! it will all work out!.

we have 3 dogs.we spoil them alot.we also refer to them as fur kids.my wife has been all worried about what would we do if the dogs needed an emergency vet trip as well..she dd not find it funny at all when I said $35 will put the dog to sleep.no way am I gonna spend hard earned money on fixin a dog up...now I know that $35 will put me to sleep as well..what a bargin.

[jcj112562]

Not for nothing, but the Trustee will more than likely tell you that an 800 dollar medical bill for a human child is an emergency, a vet bill for an animal is not. Their job is to maximize return to the creditors, and your emergency fund is not listed as an allowed expense. You have to find where to get the funds, and replenish the fund, but I would not expect a sympathetic ear approaching the trustee about suspending payments for that. Good luck.

John

[kornellred]

If you obtain a "suspension" of a plan payment, that amount will be added to the remaining plan payments. Your plan base amount will not change and the duration of your plan payments will not change. The only thing that will change is the amount you pay each remaining month.

[mountanddo]

dont be terrified! it will all work out!.

we have 3 dogs.we spoil them alot.we also refer to them as fur kids.my wife has been all worried about what would we do if the dogs needed an emergency vet trip as well..she dd not find it funny at all when I said $35 will put the dog to sleep.no way am I gonna spend hard earned money on fixin a dog up...now I know that $35 will put me to sleep as well..what a bargin.

I'd be sleeping with one eye open after that revelation!

[CCB35]

I had asked my attorney about a suspension of payments,due to my wife being out of work for a month .the attorney said the trustee wouldnt go for it .So i agree i dont think they would suspend for vet bills