Chapter 13 Success

[DeepBreaths]

We are still waiting to be confirmed. Can't wait. We are 2 months in and it's going well. While I am still on edge always my husband says that he feels we are in such a better position now. We have a good future to look towards.

I read the forum every few days and I've seen many posts that mentions a ch 13 not being successful. How can it not be successful? There is no way, no how that we won't make it to the end of this. Am I being naive or do I now know something?

[AngelinaCat]

I read the forum every few days and I've seen many posts that mentions a ch 13 not being successful. How can it not be successful?

Hi DB. There can be many reasons for this. First off, a successful CH13 depends on a willingness on the part of the debtors to discipline themselves and learn to live on a budget and on a 'cash only' basis. Many people are unable or unwilling to make the sacrifices necessary in order to abide by a budget.

Now, having said that, there are many other factors as well. Sometimes, the figures submitted and the plan that gets confirmed, may not be realistic, and the poor debtors are struggling to make the payments. Sometimes the trustees are not willing to agree to a plan modification. There are several active threads carrying those themes right now.

In other cases, the plan is confirmed, and the payments are being made, and everything is going along smoothly---then the bottom drops out. One of the debtors (if a couple) loses a job; or a major medical crisis happens--any of a number of things. Then the plan has to be modified, or if it can't, then converted to a CH7. If for some reason THOSE options don't work, then the CH13 gets dismissed, and the debtor(s) have to start over.

(JustBroke--your opinion, please. Is the way I am explaining this correct?)

My dear 'Hub and I were planning to do a CH13. When I lost my FT job, and he lost his consulting jobs, we had no choice but to file a CH7. Thank goodness, this all happened BEFORE we filed.

As it worked out, we were an Asset CH7, which I consider to be a razeed CH13. So we are familiar with the payments to the trustee, and all of that.

There is no way, no how that we won't make it to the end of this. Am I being naive or do I now know something?

I do VERY strongly caution you about using this statement. You do not know the future. You are at the start of your journey. You do not know what twists and turns that may lay before you in your path.

My very best wishes to you!

[justbroke]

I agree with Mrs. Cat... you just don't know what will happen! I intended to not convert or dismiss my Chapter 13, but here I sit, almost 5 years to the day from filing my Chapter 13, and I had converted to Chapter 7. Circumstances changed and that which I thought I wanted -- to protect investment property -- just did not work out. Please realize that some of the Chapter 13s that do not make it to discharge, are actually conversions such as in my case. However, the reality is that 60% of Chapter 13s do not make it to completion and of that percentage, most are not conversions.

We always hope that a confirmed Chapter 13 is uneventful and there are no life changing events! We also hope for no serious expenses such as, replacing 4 tires 2 weeks after confirmation, or needing to replace a sewer line just 1 year into a Chapter 13. Yes, those happened to me. There were other things, but I was able to deal with those events due to sheer luck.

I wish you an uneventful Chapter 13.

[bigalsbeans]

Yes, apparently many do not make it through a chapter 13, I myself did. I had a great attorney, my payment was enough but it was manageable. It's not fun, you live within your means but it is doable! It's nice to be out from under that mountain of debt!

[AngelinaCat]

Congratulations, bigalsbeans, on your success, and welcome to the forum!

[woeisme]

Don't forget that some of the CH 13s are "strategic" 13's and those filing NEVER intend to stay in them 5-years to completion, it's purely a business decision that affords them a temporary advantage while they get other aspects of their finances in order. I would not consider these unsuccessful 13's either, even though they don't get to discharge, since they prevent the foreclosure or allow the debtor some other form of relief temporarily until they no longer need such court protection.

[jange]

We are still waiting to be confirmed. Can't wait. We are 2 months in and it's going well. While I am still on edge always my husband says that he feels we are in such a better position now. We have a good future to look towards.

I read the forum every few days and I've seen many posts that mentions a ch 13 not being successful. How can it not be successful? There is no way, no how that we won't make it to the end of this. Am I being naive or do I now know something?

There are many reasons that CH13 fail as others have pointed out and 5 years is a long time, but you do need to be positive, stick to you budget, save money for emergencies and hope that none of those disasters happen that could cause your ch13 to fail.

Our first year was very hard, we had a lot of costly unexpected things happen but each time I had used my emergency fund to pay for them. Prior to ch13 I didn't have an emergency fund, because I didn't have any money to save. Since the 1st year things have gotten easier and we now only have 17 payments left. The trustee payment is now just part of my bills, that I pay every month. The past 3 1/2 years have gone by fast and I am hoping the next 1 1/2 does the same.

[dmc-2008]

Jange the first year has gone by so slowly for me, actually only 8 months!!! I don't know if its because I have been so focused on it all. I hope the next four years go by without too much drama and quickly too!

[jange]

dmc after the first year I did stop focusing on it as much. It doesn't impact my day to day living like before bk. I use my debit card to pay for most things and I even got a Target debit card.

The only thing that happened recently was I tried to open a savings account with ALLY and they turned me down due to an active ch13. That I was a little surprised at, since I wanted to give them money and not the other way around. Their interest rate was a little higher than Capital one 360, which I already have and had before bk. So I'll just keep my emergency fund where it is.