I am scared to death about a chapter 13

[magic13]

For those who were sucessful and happy how hard was it, is it just getting used to no credit card? Secondly, those who hate it , is it just a mental thing of having to pay a trustee every month. Do they give you enough money to live on? From what I see, some people are saying list your expenses at the IRS standards (I can live with that) but some people are saying the trustee only gave a family of 3 $75 a month for clothing. My wife and I am over the median in Michigan retired on pensions and I have to file because my Home is way under water in a crime area and with a 2nd mortgage

[Limitman]

Well what I can say is, it wasn't easy in the begining but as time went on it got easier. I was lucky enough to get mine paid off early and that was a huge help. In the begining of my CH13 I had no money at all to start and actually during the 13 I had more of a savings in the two years while I was in a 13 than I did in any year before I filed. Hire a good lawyer that knows your trustee and that will be a big help. If I didn't file I would have never paid of my credit card debt.....no way with the interest and late fees it just gets to be too much. My lesson is learned I will say and I am thankful for that. Good luck!

[magic13]

What do you mean knows your trustee, are you saying that your repayment plan is only as good as your attorney. When you say that you had no money, does that mean you lived a normal life but you couldn't save

[jange]

For those who were sucessful and happy how hard was it, is it just getting used to no credit card? Secondly, those who hate it , is it just a mental thing of having to pay a trustee every month. Do they give you enough money to live on? From what I see, some people are saying list your expenses at the IRS standards (I can live with that) but some people are saying the trustee only gave a family of 3 $75 a month for clothing. My wife and I am over the median in Michigan retired on pensions and I have to file because my Home is way under water in a crime area and with a 2nd mortgage

magic13, interview 3-4 attorneys and find someone you are comfortable with that does ch13 and not just ch7's and can help create a livable plan.
It is always hard in the beginning, getting used to no credit, afraid something big is going to happen that you can't pay for, etc, etc, etc, but we created a plan that we got comfortable with. The trustee raised the payment $300 per month, so I was worried in the beginning, but now it is not a problem.

We are starting year 3 and I have not really had any issues by not using credit cards. I use my debit card all the time.
I have money in the bank, money in my 401K, everyone gets paid, we go out to dinner, take small vacations, life is much better than it was 3 years ago when we started our bk or the 5+ years we struggled to make ends meet.

Each trustee and district are different on what they allow. which is why your attorney needs to know what the trustee accepts and what they don't. It just makes it easier when creating the plan.

[magic13]

Thanks Jange, but I have talked with three attorneys and they all are saying different things. One is saying two people can have 100 in clothing allowances and the other is saying 55 is the max. Can I ask you why the trustee went up $300.00. If i start with a low payment and he went up 300 on me I wouldn,t mind

[LadyInTheRed]

My financial condition before realizing I needed to file a Chap 13:

$475 in monthly minimum payments on credit cards, about to increase significantly because of the end of an introductory 0% rate on about half the total balance.
$1700 on first mortgage
$570 per month on 2nd mortgage
Contributing 3% of my salary to 401k
driving 1999 pick up truck
No hope of paying off credit cards during my lifetime.

Once I decided to file, I bought a new fuel efficient car with a $300 payment.

After filing Chap 13 22 months ago:

$500 plan payment including the car payment and about 75% of my attorney fees.
$1700 first mortgage payment
No Credit Card Payments
No second mortgage - Stripped (or at least it will be when I complete my plan)
Still have pickup truck when needed
Contributing 5% of my income to my 401k because I've received 2 raises since filing that my attorney said did not need to be reported to the trustee.

So, I have over $500 more in cash per month than I did before. I save money every month so I can afford occassional and unexpected expenses.

It was an adjutment to stop relying on credit cards. But, it was only a matter of time until the credit card companies cut me off anyway. I feal much more in control of my finances now.

Each trustee and district are different on what they allow. which is why your attorney needs to know what the trustee accepts and what they don't. It just makes it easier when creating the plan.

I think it is more accurate to say that each trustee is different on what they will object to. If a trustee objects to your plan and you can't come to an agreement on a modification, it's up to the judge what to "allow." Yes, you want an attorney who knows what the trustee will and won't object to. But you also want an attorney who will be a strong negotiator with the trustee, not back down from including reasonable and actual expenses when determining your plan payment just because the trustee may object. The attorney also has to be familiar with the judge and know what he/she is likely to allow in case your attorney can't reach an agreement with the trustee.

All other things being equal, I would bet the attorney who says you can have a max of $55 for a clothing expense is more likely to play it safe then risk having to negotiate with the trustee. But, it's hard to evaluate the two attorneys based only on that difference. Perhaps the attorney who would include a lower clothing expense would include higher expenses elsewhere.

[lillymarlene]

I'm now 17/48 months into my ch-13, and it does seem to be possible to live without credit cards. I have a limited income, and I try to watch where every penny goes. I even memorize supermarket prices, and constantly ask myself for just about anything: Do I really need it?

Then, it really is important to pick out an attorney that you are comfortable with, since chapter 13's last so long (3-5 years.)

[LadyInTheRed]

I am scared to death of a 13, can you guys share with me your experiences, what percentage of your income did you keep? Were you renting? what if you sign a lease and hate your place later, can you get a new place while in a 13

I' copied your question from the other thread here. You'll get more helpful answers if the questions are not spread over several threads on other topics.

What percentage of income other people keep is really irrelevant. You can't determine what your plan payment will be based on what other people's plan payments are. Payments range from $100 to thousands of dollars and are not at all based on a percentage of income. Your payment is based on you income and allowed expenses. If you have non exempt assets, and/or priority or secured debt that is paid through your plan, those items will create a minimum payment.

[magic13]

Thank You Lady in Red, so in your experience the trustees don't want to make you destitute, otherwise what would be the reason to go from one stress to another and destroy your credit in the process. I am surrendering my first and second mortgage but we are financing a car and owe the IRS.

[jange]

[QUOTE=LadyInTheRed;565386]
I think it is more accurate to say that each trustee is different on what they will object to. If a trustee objects to your plan and you can't come to an agreement on a modification, it's up to the judge what to "allow." Yes, you want an attorney who knows what the trustee will and won't object to. But you also want an attorney who will be a strong negotiator with the trustee, not back down from including reasonable and actual expenses when determining your plan payment just because the trustee may object. The attorney also has to be familiar with the judge and know what he/she is likely to allow in case your attorney can't reach an agreement with the trustee.



lady, that is a better way of saying it!

[jange]

Thanks Jange, but I have talked with three attorneys and they all are saying different things. One is saying two people can have 100 in clothing allowances and the other is saying 55 is the max. Can I ask you why the trustee went up $300.00. If i start with a low payment and he went up 300 on me I wouldn,t mind

My payment went up $300 as I had gotten a small raise and a bonus between the time we filed and my 341 meeting. So the trustee wanted a piece of that.
It is very difficult to compare plans but I can tell you my trustee did not object to $200 per month for clothing for 2 people. Which to me was a lot of money since I had been spending next to nothing on clothing. He also allowed $90 for laundry and dry cleaning.
I don't buy new clothing every month, but now I can shop at Kohl's instead of Walmart.
Once your plan is accepted, the trustee is not going to check and see how much money you are spending on clothing. It is up to you to stick to a budget.

Also, even though my original 5 payments were lower, my base plan increased to the new amount x 60 payments, so I have to pay an extra $20 a month to catch up for the lower
5 months of payments.