Quitting a Ch13

[Okieblue]

What is the damage, if we were to dismiss after 14 months in? $69K debt, plus all those fees and whatnot, plus still owing atty fees. Only our vehicles are included with the monthly payment now, 10% to unsecureds, atty fee. Yet, I feel trapped. I would like to work, but does it make sense financially to work if I have to turn around and pay it to the trustee towards unsecureds anyway.

[LadyInTheRed]

I think you answered your own question. If you let your 13 get dismissed all of your debts will go back to where they were before you filed, except for anything that has been paid during your BK. Penalties and 14 months interest will be added to your debt. And, yes, you'll owe your attorney whatever he/she hasn't been paid. If your cars loans haven't been paid at the rate the original contract called for, those loans will be deliquent.

As far as getting a job is concerned, you really should look at the long term. If you want to work, go to work. Yes, if you don't have increased expenses to match your increased income, your income will go to unsecured creditors. But, you'll come out of your Chap 13 with a job instead of having to look for a job after a long period of unemployment.

What is making your Chap 13 so hard?

[Okieblue]

The lack of control, I have turned into an insecure hoarder and feeling like success is punished.

[keepsmiling]

Have you considered what you will do instead?

[keepsmiling]

We can change the way we perceive things. Look at the big picture and think about where you will be in less than 4 years.
Also... it's possible that your plan is not well designed and could be revisited.
It would be nice, tho, if a 13 came with free counseling. I'm sure most could use some after/during all the stress. I'm sure there often isn't anything in the budget to allow for it.

[LadyInTheRed]

The lack of control, I have turned into an insecure hoarder and feeling like success is punished.

Why are you hording? Is there something you want to sell that you are holding onto because of your Chap 13? Depending on what it is, if it was an exempt asset at the time you filed, you might learn from a quick call to your attorney that you can go ahead and sell it. There really should be nothing to be insecure about. If you share more about your concerns, maybe we can help.

BK is a way to eliminate debt you are unable to pay, not a punishment for success. In a 13, in exchange for eliminating your debt, you agree to submit all of your disposbile income to your plan for a finite amount of time. You pay what you can afford within a reasonable amount of time instead of struggling for years to pay off debt that seems to shrink so slowly. You will reap the rewards of your success long after you are done with your 13. That includes success in your carreer AND the success of completing your Chap 13 plan.

You don't have to bring in a salary to be of value. If you don't have enough to keep you busy and can't stomach paying more to your creditors, why not do volunteer work?

I feel like I am in much more control since being in Chap 13. The only difference between now and before I filed is that instead of paying several creditors, I make one payment to the trustee and can afford my living expenses without using credit. If it weren't for my participation on BKforum, I would hardly think about my BK. Could it be that you are dwelling on your BK too much?

[Okieblue]

I am for sure dwelling on it too much, it almost consumes me, last thing I think of when I go to sleep and first thing I think of when I get up. We live pretty much like we did before we filed, only thing is now, I am more honest about how much we spend, no more $300 for groceries with cash, but then spend another $200 on food using a cc. I understand the concept of a 13, but living it for 60 months is a *****. I wonder if at this late date we could actually modify it? I just want the control.

[df04527]

A most humble opinion here is that your issue may run a little deeper than the BK.

[keepsmiling]

Sounds like maybe you have too much time on your hands.
By now it should be just habit.
Work on changing your perceptions of things and find something productive to keep you busy. Volunteering to help those in worse shape than yourself is always a great way to regain perspective.
Good luck. It's ok to come here to rant btw. That's why we're here.

[Okieblue]

Are you kidding, Farmville keeps me busy all day into the wee hours... lol No, really, I have no end of things to keep me amused, I just feel very insecure and limited in my choices. I was looking for some idea on what I could expect if we did dismiss, of course we don't have thousands to settle with big, mean, nasty cu, but the little ones we could pull off. Not sure if oc's work with this situation or if they go for the jugular.

[mountanddo]

I am for sure dwelling on it too much, it almost consumes me, last thing I think of when I go to sleep and first thing I think of when I get up. We live pretty much like we did before we filed, only thing is now, I am more honest about how much we spend, no more $300 for groceries with cash, but then spend another $200 on food using a cc. I understand the concept of a 13, but living it for 60 months is a *****. I wonder if at this late date we could actually modify it? I just want the control.

What makes you believe that you will not be in living hell without a chapter 13? Instead of paying 10% to your creditors you will be paying 100% and that 69k of unsecured debt..watch it balloon with added fees, interest and lawyer fees. You can't use credit cards now anyway so that option is gone. I am not understanding how your perception that a chapter 13 is worse than the situation you were in before. Perhaps you have forgotten what led you to BK in the first place? You could try to modify however if you truly have the DMI then you need to look at your budget and just be resigned to live within that.

[AngelinaCat]

What makes you believe that you will not be in living hell without a chapter 13? Instead of paying 10% to your creditors you will be paying 100% and that 69k of unsecured debt..watch it balloon with added fees, interest and lawyer fees. You can't use credit cards now anyway so that option is gone. I am not understanding how your perception that a chapter 13 is worse than the situation you were in before. Perhaps you have forgotten what led you to BK in the first place? You could try to modify however if you truly have the DMI then you need to look at your budget and just be resigned to live within that.

In addition to what mountanddo said, you will be subjected to endless creditor calls, and then most likely lawsuits aimed at getting you to pay what you owe, which can result in judgments, and then levys and garnishments.

You have NO IDEA what HELL you WILL be subjecting yourself to. You want control over your life? You will NOT have it going this route. The CHOICE of deciding to file BK, no matter the chapter, is so that you WILL have some control over your financial life. And with a CH13, you are FORCED to learn to budget your finances. Methinks that this is what you don't like.

[minan]

Agree with AngelinaCat. We went through misery when we filed, but we are 3 month away from starting our 3rd year of a 5 year plan and have no regrets now. We filed due to back taxes, but cannot imagine the hell we would have had to endure if we ended up being late on our credit card debt. We were lucky in that we were current on our consumer debt and mortgage. We realized we'd never payoff the IRS debt so we filed. Now we have stopped the penalties charges and will be done in 3 years. Time does file, though the first year is the hardest. We have no credit cards and buy only using cash. It has gotten easier.

[99lawdog99]

Basically as I understand it, you were given the chance to pay off appx 69K of unsecured debt at a rate of what 6,900.00 with out any interest over a 5 year period instead of paying the full amount subject to 29% + interest and fees, and you are wondering what to do? If I were you, I would be jumping for joy as that deal is very good. One thing that you can be gauranteed is that you will be much worse off if you dismiss no matter how hard it is now. Don't do it.

[Okieblue]

I totally get you and yes, the fall out could be really awful for my family. I would just love to be free of this.