Chapter 13 Questions to ease my mind

[mclawdawg]

Hi all,

I recently hired a lawyer to file Chapter 13. They created a plan around $464.00 a month, but I've yet to have my 341 meeting with the trustee & I've made my first payment, but I've been told that it may be subject to change.

Currently in my bank account I have $4000 - This is from a work bonus that was exempted from taxes that should have been included in my plan & a 2021 Stimulus check. I'm worried that the Chapter 13 trustee will take the funds in my account which would hinder my ability to make steady monthly payments. Furthermore I have no intention of spending this money but the fact that it's in my bank account makes me feel secure that I can keep up with everything.

1.) Will the trustee take the money I have in my account??

2.) How often does a trustee monitor your spending/transactions??

3.) I paid my girlfriend $1600 from the stimulus prior to filing to help out with my children's expenses. It wasn't a loan or a gift, it was to take care of my children. I hope they don't question this.

Lastly my situation isn't normal. I have 3 kids total. One child is not biologically mine, and his father is non-existent so I've stepped up. I have two biological children & one I pay $527 a month for in Child Support and I am with her half of the time still taking care of her. I'm ahead on all Child Support payments, and then I have 1 other child recently with my girlfriend who doesn't live with me (yet) due to her taking care of her ill father at home who is unable to walk. My family does stay with me often in my home but I can only claim 1 of them every other year since they don't live with me.... I'm at a loss if they take that money in my bank because I won't be able to provide my kids a good life. Sorry I know this is a lot... but this forum seemed really encouraging, and I want to succeed for my kids.

With all that being said, it's no mystery as to why I've had to file lol!

[justbroke]

Welcome to BKForum.

I recently hired a lawyer to file Chapter 13. They created a plan around $464.00 a month, but I've yet to have my 341 meeting with the trustee & I've made my first payment, but I've been told that it may be subject to change.

It is normal for an attorney to have you paying the initial amount and informing you that it may change. The change could come if the Trustee sees something that needs adjustment.

Currently in my bank account I have $4000 - This is from a work bonus that was exempted from taxes that should have been included in my plan & a 2021 Stimulus check. I'm worried that the Chapter 13 trustee will take the funds in my account which would hinder my ability to make steady monthly payments. Furthermore I have no intention of spending this money but the fact that it's in my bank account makes me feel secure that I can keep up with everything.

1.) Will the trustee take the money I have in my account??

Chapter 13 Trustees don't take anything. A Chapter 13 is much different than how a Chapter 7 operates. Your attorney likely exempted the funds in the bank. Even if the attorney did not exempt the funds, you just must pay at least that amount to your unsecured creditors over the life of the Chapter 13.

2.) How often does a trustee monitor your spending/transactions??

Zero. Zilch. Nada. Despite the rumors that the Chapter 13 Trustees controls and monitors your finances, the fact is that they don't. You may be in a bankruptcy district, or in a Chapter 13 Plan, which requires you to send a copy of your tax returns to the Trustee annually. They use that to see if there were any major changes in income. The Trustee is not watching (nor could they) your bank account and your spending habits.

3.) I paid my girlfriend $1600 from the stimulus prior to filing to help out with my children's expenses. It wasn't a loan or a gift, it was to take care of my children. I hope they don't question this.

I'm assuming that the stimulus was pre-filling. It would not matter. I have not read of one Chapter 13 Trustee that has gone after the stimulus.

Lastly my situation isn't normal. I have 3 kids total.

Since it appears that your attorney has already created your initial Chapter 13 plan, all of these factors have been taken into account.

[bornfree2]

Hi all,


Lastly my situation isn't normal. I have 3 kids total. One child is not biologically mine, and his father is non-existent so I've stepped up. I have two biological children & one I pay $527 a month for in Child Support and I am with her half of the time still taking care of her. I'm ahead on all Child Support payments, and then I have 1 other child recently with my girlfriend who doesn't live with me (yet) due to her taking care of her ill father at home who is unable to walk. My family does stay with me often in my home but I can only claim 1 of them every other year since they don't live with me.... I'm at a loss if they take that money in my bank because I won't be able to provide my kids a good life. Sorry I know this is a lot... but this forum seemed really encouraging, and I want to succeed for my kids.

Hero! The world needs more dads like you!

" The glory of children are their fathers"
proverbs 17:6

[justbroke]

Hero! The world needs more dads like you!

I agree.

[mclawdawg]

justbroke & bornfree2. Thank you so much for the information and the words of encouragement. I'm seriously in tears. This has been really rough patch for me, because I've done my best to take care of my family, and the fact that I messed up financially and had to file is making it very tough in my relationship. For both of you to compliment me on being a good father really made my day and I hope you know that.

[justbroke]

It it tough mclawdawg and I can sympathize. Trying to carry the family and being in this position, filing bankruptcy, can be very tough. I have been the person that everyone came to financially. When I had issues, there was no one on which to rely as everyone (immediately family, brothers, sisters, parents, cousins, aunts, uncles, and even several friends) always depended and relied upon me as their financial rock. I didn't want to fail them.

I was able to hide it from them all, but it took a lot out of me. I learned ways to make money stretch. I had to tell friends and family that I couldn't help them, and it broke my heart. You have a good heart and don't lose that. You'll get through this and you'll be a little wiser.

[mclawdawg]

justbroke That's exactly what happened to me, and why I'm in this situation. A heart of gold can often be easily manipulated, but the sin of what they do with that money is on them not you. You have no idea how much positivity and impact you've already made on my life, and we are complete strangers over the Internet. You seem like a very genuine person, and nothing but good things will come to you if they haven't already.

[bornfree2]

justbroke That's exactly what happened to me, and why I'm in this situation. A heart of gold can often be easily manipulated, but the sin of what they do with that money is on them not you. You have no idea how much positivity and impact you've already made on my life, and we are complete strangers over the Internet. You seem like a very genuine person, and nothing but good things will come to you if they haven't already.

lol thats exactly what i told justbroke. He is an angel for his tireless help on here

Hebrews 13:2

1 Continue in brotherly love.
2 Do not neglect to show hospitality to strangers, for by so doing some people have entertained angels without knowing it.

mclawdawg there are divine laws and statutes that override all human legal framework that cause injustice. Everyone has a day in THAT court of judgment in the after life. Every deed, utterance, and thought is being recorded in the books that really count.

[justbroke]

I don't judge anyone. People can't believe that I don't judge. I take each person for who they are, flaws and all. The community here accepted me when I was down and broke. This is me, giving back.

[mclawdawg]

That's a good thing to do. I'm a good person who's really fallen on hard times. I just filed Chapter 13, & a little too much information on this next part but my girlfriend is leaving me. She claims she can't be with anyone who has two bankruptcies... I don't blame her (even though I helped her with so much of her stuff) so I'll have two Child Support payments coming up at the start of my Chapter 13. I have a previous Bankruptcy already and now I'm in this Chapter 13..... so no car, no apartment, no house in my sites. I have to be out of the house I'm in soon because my friend is selling it. Keep in mind this whole time I've kept everything afloat household wise, taken care of everyone and everything well without asking for help..... maybe that's my problem is I'm too prideful...just debts caught up to me. I had to tell her that two random strangers on the Internet made me cry and appreciated rather than my own significant other. No matter what though, I'm going to get through this Chapter 13, and come back stronger than ever financially.

[mclawdawg]

I have a vehicle payment that's in her name that's on time... but who knows if she'll take that away from me. I doubt anyone is going to approve me for an apartment.

I have a really good job, of $27 an hour. I'm an IT Specialist, and that's really the only good thing I have going for me after all of this. My beautiful children deserve better. If the only thing making me a bad person is not having money than so be it.

[bornfree2]

That's a good thing to do. I'm a good person who's really fallen on hard times. I just filed Chapter 13, & a little too much information on this next part but my girlfriend is leaving me. She claims she can't be with anyone who has two bankruptcies... I don't blame her (even though I helped her with so much of her stuff) so I'll have two Child Support payments coming up at the start of my Chapter 13. I have a previous Bankruptcy already and now I'm in this Chapter 13..... so no car, no apartment, no house in my sites. I have to be out of the house I'm in soon because my friend is selling it. Keep in mind this whole time I've kept everything afloat household wise, taken care of everyone and everything well without asking for help..... maybe that's my problem is I'm too prideful...just debts caught up to me. I had to tell her that two random strangers on the Internet made me cry and appreciated rather than my own significant other. No matter what though, I'm going to get through this Chapter 13, and come back stronger than ever financially.

You know what helped me in times like yours, journaling and prayer. Use the voice recorder on your phone (or buy an mp3 recorder.. more private...and they are cheap like $40) and anytime you want to dump out your stress just lay it all out on the tape. Record your highs and your lows. Also record any notes from interactions (dont record people but record notes on the conversations you had). Anything you want to talk about, to yourself, is beneficial because it gets it out.

This method is like therapy without the cost. A way to dump it all out. It really helps to get it out

As for prayer..well its the same idea. Just layout your feelings/thoughts to God. Myself I ask for wisdom and strength going through this. In my experience God doesnt work things out immediately, but He does respond and the response is always so perfect and full of peace.

Keep on with the good fight

[mclawdawg]

You know what helped me in times like yours, journaling and prayer. Use the voice recorder on your phone (or buy an mp3 recorder.. more private...and they are cheap like $40) and anytime you want to dump out your stress just lay it all out on the tape. Record your highs and your lows. Also record any notes from interactions (dont record people but record notes on the conversations you had). Anything you want to talk about, to yourself, is beneficial because it gets it out.

This method is like therapy without the cost. A way to dump it all out. It really helps to get it out

As for prayer..well its the same idea. Just layout your feelings/thoughts to God. Myself I ask for wisdom and strength going through this. In my experience God doesnt work things out immediately, but He does respond and the response is always so perfect and full of peace.

Keep on with the good fight

I came back here because I knew you two would hear me out, and guide me. I believe in the lord and I am a man that loves jesus & god, but I often doubt my faiths because of what's happened. I know I shouldn't, and I know they are there to guide me. That is some really great advice, I'll do that. Thank you and god bless you.

[flashoflight]

Make sure you tell your attorney EVERYTHING about who you're trying to support.

If you did, either he told you you can somehow fit everything in or your plan is infeasible without cutting someone off. You can't offload your expenses to American Express anymore in order to help out xyz.

[bornfree2]

Make sure you tell your attorney EVERYTHING about who you're trying to support.

If you did, either he told you you can somehow fit everything in or your plan is infeasible without cutting someone off. You can't offload your expenses to American Express anymore in order to help out xyz.

EXACTLY! Screw this idea that shareholder profits come before the needs and future of CHILDREN.

The pursuit of profit and easy money debt is DESTORYING the next generation and future of the country. You dont see china or russia in this state. We are headed for such a horrible collapse.