A comment about expense questions

[arthoralbert]

Nice information thanks for sharing I really enjoy reading your post..

[tdgirl3258]

I don't really understand this. If You make less than the median income and thereby pass the means test, are you still obligated to tell them where every nickel and dime go? This is unreasonable, as things come up. Your car breaks down, that's a $500 repair. It's not a reoccurring expense every month. If I have $200 dollars left every month the trustee might think i have the means to pay, but then the car breaks down, then what? I'm stuck with a chapter 13 plan, spending every last dime I have and no money saved up to fix my car.

This is a valid point. Last month we not only had to tow our vehicle but fix it as well. If we had to pay on a Chapter 13 plan, we wouldn't have been able to pay to have the vehicle towed much less get it fixed.

[justbroke]

That is precisely why those entering a Chapter 13 need to look at purchasing a new vehicle prior to entering a 5 year plan. There are many ways to have money available in a Chapter 13. The first key is, having an attorney that can get you a budget that allows saving.

If you refuse to, unwilling, or can not budget, there is no way you would ever survive a Chapter 13. This is why many of them fail.

I'm not saying a Chapter 13 is easy. I'm saying that those that actually change their lifestyle and go back to saving, will realize that a Chapter 13 is doable. Remember, a Chapter 13 has significant power over settlements, being sued, levies, foreclosures, and garnishment. It stops collection, gets rid of interest on non-secured debt, and allows discharge without paying a significant portion of the debt (in the super-majority of cases).