my story

[murph996]

Thanks Staci.

One thing I forgot to post, is that it is required in my district that car payments go into the plan. I don't think that matters much if it would push me out of a 100% plan. I don't think it will, but it's worth checking on. Also, if I get pushed out of the 100% plan that would put pressure on my wife to either join in or deal with our joint creditors..Theyd be able to contact her for the unpaid portion of the debt. Not huge $ but a consideration. With her out of the BK, she should be able to qualify for a decent rate--or have parents co-sign with her when it becomes a necessity.

We are not filing jointly. And my strong preference is that we don't both file. I think the only way we would both file is if we could get out of the 2nd mortgage.

[murph996]

I actually asked about 401(k). If we start on a 100% plan, he didnt foresee any issue with changing my contributions while in the plan. I should know way more after tomorrow night as I will have all my debts and we'll go through my budget, etc. Right now Im putting in nothing. I want to put in 6%--that maxes my employer contribution.

[SMinGA2]

I had not considered that you might have reasons for wanting to be in a 100% plan. And true, if your wife does not file with you then she would not need trustee approval to seek a car loan in a couple of years. (Assuming she has an income - getting financing for a car loan without income is not realistic.) You still might need to scramble your budget to find a way to pay for it.

[murph996]

Thanks SM. My attorney did state that the trustee may try to pay off in less than 60 months. I wasnt sure how they would do that.

I just did the online means test for Ohio. There is no way I will qualify for Chapter 7.

My monthly disposable income is $1775 by my calculations. Im pretty sure I captured everything--but sure, it could be off. Its not a simple form But that # sounds about right. I was estimating a maximum payment based on the total debt/60 of $1200. Probably would be closer to $1000. So it would seem to me that as of this moment I would only qualify for the 100% plan.

So, the question is this (I will ask my attorney)--Can the trustee insist on a payment of $1775 (or whatever we determine is my disposable monthly income)? If the answer is yes, then I can see where getting the car now would make sense. I will pay the same $1775 but be covered for my car payment instead of paying $1775+ car in a couple years. But would have to wait for the 90 days. Im still not sure if I could even qualify for any sort of car loan. I struggled when I bought the last one to get approved for anything.

[toojerm]

Murph, while is does get tight, and stressful, there is a lot of freedom in a 100% plan that many on here don't understand. For instance, any windfalls, tax refunds, extra income are all yours. No submitting tax returns or financial statements. You could change your contributions or even take a loan from your 401k if needed without ever telling telling the trustee, as that money is yours. They can't take more than you owe + trustee fees. The crappy part of it is that we pay a whole lot more in trustee fees than those in < 100% plans because those are based on the amount paid in. So, pay all of your debts, and they charge you more, that makes sense. I'm 43 months into a 100% plan that will be paid off in May. Since I filed, I had a second child, finished my degree, changed jobs, moved 1700 miles, and built up my wife's credit (I also filed alone) with a secured card for her, as well as purchasing a car in her name. The whole ordeal sucks, but it's paying a pennance. When it's over, I'll debt free and my take home pay will literally double. I've only talked to the lawyer and trustee 4 times since the 341, because they adjusted my payment up twice due to awaiting a surrendered vehicle to sell at auction, and when I've moved to update them on my address. Best of luck.

[murph996]

thanks toojerm.

From talking to my attorney, and I meet again tonight with all my paperwork and to pay the up front fee--it seems like the payment will be based on debts/60. Initially he was estimating 600-900 payment - which is way less than my disposable income. After putting it all together, Im guessing $1000-$1200 monthly which still will likely fall way under. So, compared to how tight Ive been the last 2 years--I paid every excess penny to the PDLs--Had up to $$1000 gone from my account before my check ever went in every 2 weeks. I can handle this. Even if they set my payment higher than $1200, I'll be fine.

[murph996]

Met with the lawyer today with all my paperwork and my list of debts--and a check for his initial payment.

He didnt anticipate that the trustee would force payment to max out my payment to my disposable income since we are going in proposing a 100% plan. And we will likely propose a plan that will payoff the debts in slightly less than 60 months going in. He said he has had success budgeting for a car payment when the need was expected to be imminent. By having that in the budget it will lower my DI and lessen the likelihood that they will ask for a higher payment..or at least lay the groundwork for a reduced payment when I get the car.

In reality--due to the nature of my debts-high amount of PDLs, its likely the plan will end up at well less than 5 years. The payment we will propose will be based on all the PDLs at the full value of what they say I owe. Its unlikely that the trustee would improve a decrease in payment just to stretch it out to 5 years after all the claims are in.

He's coming around on my argument on the illegal payday lenders. They need to be listed. ..but depending on who makes claims and how much in fees they charge he conceded it may be worth disputing..He still thinks none of them may file claims. And by listing them and getting discharged, Im covered if they sell the debt and try to sue in the future.

[ValleYum]

That sounds like you had a great strategy session with your lawyer! Awesome!

[toojerm]

For every creditor that didn't file a claim, the debt was bought by Ecast settlement corporation. Once you file, it goes public, and those scoundrels (or as I suspect, the lawyers selling the info) seek out debt to buy. You would think that with a 100% plan, creditors would stay in, but about 40% of my debt was bought AFTER I filed, but before confirmation. Just this past year Jefferson Capital Corporation bought a few accounts from Navy federal Credit Union.

[alli]

Ifeellike we are in BONDAGE with our chap 13...wouldn't wish it on my worst enemy

[lillymarlene]

Ifeellike we are in BONDAGE with our chap 13...wouldn't wish it on my worst enemy

Yes, but in my case anyway, I feel the bondage with my creditors without my chap 13 would be a lot worse! LOL I can't forget that constant ringing of the phone, pending lawsuits, banks trying to gouge extra with their penalties and interest fees.

[murph996]

Yes, but in my case anyway, I feel the bondage with my creditors without my chap 13 would be a lot worse! LOL I can't forget that constant ringing of the phone, pending lawsuits, banks trying to gouge extra with their penalties and interest fees.

I feel that will be my experience too. I am ready to deal with a budget//that hasnt been the issue for a long time. I had no real available credit for years. After I initially took out Payday loans, any additional loans were just to pay those.. I will actually be paying less total through the program than I was outside of bankruptcy. For me, not dealing with the calls and the constant juggling will be a huge weight off of my shoulders.

[murph996]

update: signed the papers yesterday and will officially have my Chapter 13 filed today. The lawyer was great and we spent much of the meeting crunching through the #s.

It was actually not so cut and dry if we were going to go in with a 100% plan as we initially thought due to high childcare expenses.

But we ended up going with a 100% plan stepping up the payments after 3 years..Here's the benefit.

1. Keeps my wife out of it and protected from creditors where we share debts. If we went with less than 100% the creditors could come after her during my bankruptcy.

2. A real possibility that we would end up at a 100% plan after creditors dont put in a claim..and we would have ended up bringing my wife into it for little or no benefit.

in my case, the step up plan really makes sense. Im paying $1365 a month in childcare now for 2 children in daycare. We know that expense will drop as they enter school. My expenses will drop starting in 2 years. We make the step up after 3 years..by significantly less than the expended reduction in expenses. We expect a significant amount of creditors (online payday loans) may not make claims..so we'll have some room to petition for modification of payments and stay at a 100% plan if and when I need a car payment, etc.

This is all dependednt on trustee approval. But the lawyer seemed confident that this would be approved--he didnt feel it was too aggressive at all.