Need your input

[Jchap1989]

Good morning All ,

just needed some direction. The wife and I are splitting. We filed for Chapter 13 Janury of 2023. We have been making the payments of $540 on a 5 year plan for a year now . Things have slowed down at my job and with this divorce, money is being stretched even tighter . That being said, the Chapter 13 payment is going to have to go right now. I’ve wrote my attorney and asked for options . I would be able to convert to a chapter 7 but unfortunately we filed a chapter 7 -6years ago and there is an 8 year wait period.

She did mention adjusting my payment plan and possible taking my truck out of the plan and just keeping my loans in the chapter 13 and adjusting the plan. That really doesn’t make sense to me as my truck payment alone would be about $440 . After discussing with my ex and lawyer , I believe we are going to just walk away and let it dismiss on its own. My attorney says after about 2 missed payments , it will be dismissed . The whole point of this is to save money now. I figured I wouldn’t be eligible to pay off my chapter 13 until the 3 year mark anyways (another 2 years ) My credit is already going to be in the gutter for the next few years , why not. I would like to honestly let my truck go and have the repo man come and get and pay cash for a car when I get my tax refund in a few weeks .

ideally I would be eligible to file a chapter 7 in 2026 per my lawyer. Any advice ? Feed back ? Chances of wage garnishment? I live in North Carolina
Again, the point is to save money in the here and now. I understand I’ll be charged back interest , etc . My credit is shot no matter what .

[vhs]

Sorry to hear about your situation.

There are other people on here that can give you better advice on this than I can, but I would say to just be patient and file the Chapter 7 when you are eligible in 2026 IF you can't figure out how to pay the $540/month, in your current Chapter 13.

What are you protecting in the Chapter 13? Assets? Home?

There is a lot to consider.

However, being patient pays big dividends if you are not concerned about your credit right now or in the next few years.

The problem with waiting for the Chapter 7 is that you may not qualify if you file in 2026. Keep exploring, and you will find what works best for YOU. It is different for everyone, based on age, income, health, etc. Regardless, I can promise you that there is an answer for you, and that things will work out by understanding your rights and options.

[Carmella]

I don't know your circumstances, but you will be penalized not only in interest, but late fees for missed payments. I don't know if you had credit card debt, a house, obviously you have a truck. You will likely be sued by whoever you owe money and then be summoned to court. You can delay things for a while, but it could also lead to wage garnishments.

what is stopping you from the $540 a month payment? Could you pick up a part time job or something enough to make the payment. You say you don't want to pay the payment and you want to save money. I don't understand what that means. Depending how much money you owe and getting sued or wages garnished paying the BK payment might be a cheaper option in the long run. If your wage is garnished that will interfere with saving money for sure.

[vhs]

I don't know your circumstances, but you will be penalized not only in interest, but late fees for missed payments. I don't know if you had credit card debt, a house, obviously you have a truck. You will likely be sued by whoever you owe money and then be summoned to court. You can delay things for a while, but it could also lead to wage garnishments.

what is stopping you from the $540 a month payment? Could you pick up a part time job or something enough to make the payment. You say you don't want to pay the payment and you want to save money. I don't understand what that means. Depending how much money you owe and getting sued or wages garnished paying the BK payment might be a cheaper option in the long run. If your wage is garnished that will interfere with saving money for sure.

This is a very good point.

Most people don't want to work that extra Saturday to get caught up with bills, but getting a once a week job on a Saturday or Sunday to "take care of business", and in this case, possibly get rid of a lot of debt, looks like a great return on investment.

Do it until you are completed in the Chapter 13 and move on. You will meet people at work, and it doesn't have to be a boring or unproductive job.

I have been in medical sales for over 20 years, but lost my job several times during downsizings over the years. However, I also have a teaching degree, and when I have lost my job in sales, I always went back to substitute teaching. You need a 2 or 4 year degree to get most sub teaching jobs, but it pays decent and the job is not that difficult if you are a confident person that can talk to younger people.

Best of luck with everything, and we are here for you if you have any other questions.

[Jchap1989]

Just have my truck and credit cards and small loans in the chapter 13 … we have 3 kids together so just getting a part time job isn’t conducive, especially when I would have to pay what I make in childcare … Again, just seeing what the chances are for wage garnishment? My loans maybe total $30k .. that’s truck and everything

thank you for your input

[CHIQUITA]

It sounds as though you are giving up on yourself.

I had $65,000 in mortgage arrears, $25,000 in back Federal and State taxes, $5,000 in credit card debt and had to pay pre-petition payment of $15,000 to get a confirmed plan. I have paid $2,400-$2,570 monthly to the Trustee, $1,700-$1,891. directly to the mortgage company and all my household bills totaling an additional $1,100. I completed the 3 year lease on the luxury vehicle I loved but I was paying over $1,100 monthly and returned it to Mercedes Benz in good standing and purchased a 2006 Honda CRV in good condition needing little maintenance for under $4000. I got a part-time job with full-time pay and benefits and my monthly budget had to be cut to bare bones but I did it and I'm single. I still can't believe I have paid a Trustee and Attorneys over $125,000 over the past 5 years because I didn't pay my bills.

There were many "I CAN'T DO THIS" moments but "I DID IT". I didn't wait to fail across the board and lose my home.

Don't give up. Work something out with your wife and pay what you can. I would break my monthly payment into 4-parts and as things got better 3-parts, etc. It gets better but don't create more debt and don't make today's stress tomorrow's stress. Good Luck to you on all fronts.