How's your life after Chap. 13???

[toomuch]

Hi all,

Just wondering how life is after filing Chapter 13. Is it worse than you expected? Not as bad? How strict is your trustee as far as salary raises? Can you have cable, cell phone??

How much do they leave you to live on after expenses? Enough to save ANY money??

I'm trying to get a feel for what it's going to be like.

Too Much

[leftyf]

I haven't filed yet, but all the attorneys tell me you can have cable and cell phone, no problem. I'm hoping to go 7, but I'm in a "gray area" it seems.

[lrprn]

Just wondering how life is after filing Chapter 13.

It's not a picnic, but it isn't the most horrible thing in the world either.

My husband and I sit down together once a week to budget the coming week very carefully. If things go as planned, we have a little bit of money left over to move into the next week. We've been able to build up a small emergency fund over the last 15 months - so far, so good.

We have cable (basic) and we have a low-cost family plan for cell phones with the cheapest phones available (I have to have one for my work). We haven't had any significant raises in the last 15 months. Our trustee wants to know about any raises over 10% of either of our filing incomes, so if that happens, we'll tell our lawyer who will tell our trustee. However, since our expenses go up as well, it's hard to predict what will happen in this situation.

We're luckier than most Ch 13 filers, I think. Our lawyer was very experienced and knew our trustee and his customs very well. If we spent everything that was listed on our expenses every single month, we would have nothing left over. But some months we can do without clothes, we coupon like mad, we do our own home repairs....it all adds up in little trickles.

Sticking with the budget, watching what you spend like a hawk, and saving whatever you do manage to scrape together is the key to our Ch 13 survival so far. Only 42 months to go!

[tofargone]

Beside the fact that I see a good chunk of my pay go directly to the trustee it isn't that bad. Casino trips have been cut back to pretty much never and it gets a little tough when a big bill comes due, but we are 6 months in and we are in better shape now then when we filled. My sons will start Hockey in about a month which means 1K in fees and probably 3-5 away tournaments that will require a hotel stay. Last year it helped put us over the edge, but this year we have budgeted for it so it should not put us under. The key is a good lawyer, a fair trustee, and a big swallowing of your ego. I have gotten into doing odd jobs for some of my family that have means. A couple of years ago I would have laughed at the idea, but know I figure its better that they pay me cash ( and very well mind you) then pay a contractor. I am averaging about $300 a month so it really helps pad the emergency fund without raising the ire of the trustee.

Just keep your head low and don't make any waves and you will get through it.

[freshstart06]

So there is never a way to create a savings in Chpt 13 for 5 years???? I guess the purpose of chpt 13 is different then the purpose of chpt 7. The reason for us at least to file chpt 7 was to start over and rebuild. find a way to put at least 10%-20% of our paycheck aside and when I am completely able to go back to work at least part time put that money up into a savings account. This way we will always have a cushion. If we had to wait five years until would do such a thing. One kid be ready to go off to college another would be in highschool and the other two just would be five years old. But the point I am making that is just way to long to be stuggling. We struggled long enough time for a break and there would be no way we could have saved any type of college fund for my oldest daughter.

So my question is what is the benefit of chpt 13 besides save your house??? I guess I can see if you have a lot of assets but then why can't you use all those assets to pay off debt if that is what chpt 13 does??? Is there really real benefits????

what happens if there is a medical expense??? what happens if your car needs major repairs or an event that your kid really wants to go to, do you have say no to them for five years????

Has anyone ever been able to save money and raise a family without being on a tight budget but can't still save on chpt 13??? I think this is the question the poster is looking for and heck, even though it does not apply to me I was wondering as well.

[Cassiopeia]

freshstart, I filed Chapter 7 and "saved my house."

????

I have a substantial home equity line of credit which I reaffimed.

[Boscoe]

Fresh start, for many people, "why do a chap 13 if only to save your house?" is not the issue. Most people do NOT have an option - they are forced into it due to their incomes. That was the big change under the new law (new as of 10/17/05 I mean).

Before, everyone who could filed chapter 7's, unless they had alot of assets they could not exempt. Not any more.

I was one of the lucky ones, taking advantage of the fact that non-consumer (i.e. "business" or "investment") cases allow chapter 7 even if you are over the median income. But even then, the trustees take a good long look and may object if they feel that you are "abusing" the system.

[freshstart06]

Thanks for clarifing for me, I just never understood. I use to BK bailout mortgages because people wanted out so bad. Me, I think I would just give up the house and rebuild but I can understand how a home that you have lived in, worked hard for is hard to give up.

We are considered non-consumer debtors as well but I did not find out until after the 341 meeting. Our income tax debt well exceeds our consumer debt which really is not that much.

I really applaud the people that actually complete chpt 13 because that must be the hardest thing to do.

[BKOnce]

After the 13th (Friday)!?... Nightmare is over for me!!!...

[$$only4ever]

We originally filed a Chapter 7, but we had to go into a Chapter 13; too much disposable income. It's really not too bad, monthly payment amount is not bad. Our attorney was good, worked our expenses so we had a little wiggle room. But the days are over of just buying something on a whim...everything has to be planned for and if it does not fit into the budget it does not get purchased. We try to put away a few dollars every month in case of an emergency.

But in 32 months, I will be completely debt free and all in all have learned some very valuable lessons.

[Granny]

. Me, I think I would just give up the house and rebuild but I can understand how a home that you have lived in, worked hard for is hard to give up.

Some houses can't be easily replaced, at least not in my eyes. Again, it's all about location, location, location. We have 2 acres 6 miles outside of the big city, 3 miles outside of the suburb. One of the better schools for the big city schools. I can see stars at night that are not visible in the city. There is no crime, no pollution and certainly not the noise we had in the city. We don't need a permit for this or that. The only deed restrictions I have is that I can't have a pig farm and I can't sell moonshine from my still.

My house needs work, the foundation is cracked, but who cares, I have peace and quiet that can't be bought anywhere else. People out here don't sell their houses, so there wouldn't be another one to replace this one.

I would rather die than move back to town. I'll find a way to live on the strict budget. I'll do whatever I have to do to save my house, including make payments to the trustee for 5 years to keep my house. It will be worth it.

[gamom02]

Freshstart,
We had only one year left to pay on our home mortgage when we filed 13, we were not about to lose our home that both of our boys have grown up in and we have worked so hard for. We had to much equity to do a 7. We had no choice. We filed to stop a lawsuit from Discover and to much credit card debt.
It did scare us at first being on the tight budget, but we have managed fine and we know we are alot better off now.
We are looking happily to the future.

[freshstart06]

Granny, You home sounds beautiful, okay I understand LOL. Your home is one to die for. I guess I just don't understand the whole chpt 13 process. I just hate the fact you can't make more money.

[Granny]

Granny, You home sounds beautiful, okay I understand LOL. Your home is one to die for./.quote] I guess I just don't understand the whole chpt 13 process. I just hate the fact you can't make more money.

LOL, my home beautiful, what a riot! No, it's far from beautiful, but it is very homey and very lived in. Come in, kick off your shoes and put your feet up on the table. Let me grab you a soda, oh, and don't trip on the toys scattered on the floor.

I guess I just don't understand the whole chpt 13 process. I just hate the fact you can't make more money.

Again, it depends on the trustee. Some trustees don't care what you make afterwards, while others want to know about every increase. Hubby is up for a raise any day now, and the figure he is shooting for will allow us to purchase health insurance and be able to save a little. This is something we have never been able to do. I think that even without a raise, we would eventually be able to save a little each month. Remember, the budget has allowances for home maintenance and other non-regular expenses, so we can save that and should save it each month to cover those unexpected expenses. What is difficult is if those expenses hit you early in your chapter 13 before you've had a chance to put away for them.

We do eventually get our fresh start, it's just delayed for 60 months. But in actuality, we are better off right away because we are paying cash and not incurring more debt. What a good feeling!

[freshstart06]

NO, I really mean it, the way you described the surroundings it is beautiful, the pride in your post. Every home needs work especially all these new builds coming up. A beautiful is more then just the appearence of the home, it is everything surronding it and what the person makes of it. A home is supposed to be "lived" in. I hate those homes so perfect that you are afraid to sit down. My home is clean but you can tell I have kids. My only requirement is that people take off their shoes when they come in because I have light carpet but no one listens to me LOL.