Just about to file ch.13 what should I expect before and during?

[hopeful316]

I'm new to this forum and I must say that it is good to see that people help each other and give good advice
on this site. Here's my situation, I have 2 houses with both a first and second mortgages and I have about
45000 worth of credit card debt with one of the creditors serving me with a civil summons. I'm current on
my first mortgages but stopped paying my second mortgages because the payments were getting high.

I'm also behind on my property taxes because it was not included in my mortgage which I should of combined. My attorney has gotten all my paperwork and will get back to me to figure out how much I should pay to the trustee and hopefully this will happen by next week and I also got my certificate. I do have some questions though I'm hoping that can be answered here.

I know there is 341 meeting that I will go to, there be other people present there besides the trustee and the creditors? What kind of questions will be asked? When I'm in ch13 does it mean I'm being monitored by the trustee on what I spend and does the trustee look and my checking account every time? An example would be, if I wanted to eat out or go watch a movie or even buy a dvd does that mean a "no"? I just fear that being in ch13 means that whatever money I have left besides paying the mortgage and necessary bills, I won't be able to use for me.

Or as long as the trustee gets paid every month, whatever money I have left I can use for me like saving for the rainy days. Also, if I get a tax refund from the IRS, does that mean I won't see it for the next five years? I do take responsibility for my actions. I did get myself in this and I have no one to blame but me, I did some reckless spending especially when the housing market was booming that's where I took out a helocs and figured I can refinance anytime. Also can you obtain a secure credit card while in ch13? My plan is to save money and try to get one so I can try to rebuild my credit and boost my score. It's been hard the past few months with calls coming in every time. I'm hoping 2012 will be a fresh start for me and I can put all this in the past. After reading the stories here, I thought bankruptcy is really bad, but now I look at it as a tool to start fresh. So if anyone who is in ch13 now, I'd like to hear your input.

[keepsmiling]

Hey Hopeful, Welcome to the Forum. Lots of folks here have been in your shoes. Keep reading while you are waiting for answers.

A request that you post in paragraphs. It's a little hard to read all that at once. It may not be too late to go in and edit to make it more legible.

[hopeful316]

Hey Keepsmiling, I edited it in paragraphs so I hope it's easier to read. Thanks

[LadyInTheRed]

Welcome to the Bkforum, hopeful316! I can answer most of your questions based on my experience and the experiences posted by others on this board. But, you should run all of these questions by your attorney. That's what you pay him for!

The trustee has a right to complete information about your finances during your plan. But, it is very unlikely you will need to do more than send a copy of your tax return each year. If you are self employed, you may have to send periodic balance sheets. I have yet to hear of a trustee going further than that after a plan is confirmed. They only want to be sure you are not hiding increases in your income. Once your plan is confirmed, the trustee will not be looking into your daily spending and will not be looking at your checking account. The trustee will not know or care if you go out to eat or see a movie. Just make your payments on time and let your attorney know if you have any significant changes in your income. If you have money left over at the end of the month, you can save it. In fact a successful 13 will depend on you putting money away each month to pay those expenses that don't occur monthly, like car repairs and registration.

Whether you keep your tax refunds depends on your plan and your trustee.

It is actually unusual for creditors to attend the 341. It seems that most 341s are held in public meeting rooms. There will be other debtors, their attorneys and any member of the public who decides to go. But, in some courts, each debtor is called in to a smaller room to meet privately with the trustee and any creditor that shows up. For most people, it lasts 5 minutes or less and is a piece of cake. To read more about 341s and the kinds of questions asked, read the 341 meeting forum: http://www.bkforum.com/forumdisplay.php?33-341-Meeting.

You can only incur debt with permission of the trustee. The trustee may approve a secured card. But, I wouldn't worry about rebuilding your credit at this point. Wait until after you are discharged. After an initial plunge, your credit score will probably improve during your Chap 13 without doing anything.