Ejecting from a flaming credit airplane...

[catleg]

Remember the ultimate cure for the means test is chapter 11. There is no means test in chapter 11. Just lots of legal fees. But I hear that some attorneys are getting better at it and learning to produce "cookie cutter" chapter 11 cases. Ultimately the legal costs are borne by the unsecured creditors who would've taken your money anyway in chapter 13. Chapter 11 works best if you have some secured debt you can direct your payment plan towards.

[flyinbroke]

Unfortunately I own nothing. My only secured debt is my car and a couple pieces of furniture recently purchased. I was denied a mortgage because my minimum payments were too high in their eyes. I mistakenly thought that the car and student loans would not be included in the 13, but as standalone payments. I will still owe S/Ls when discharged!

Rent is an issue, not because of a BK (I am not behind on it) but because of normal annual hikes. I talked my way into my last year's rent once. I doubt I will be able to do it again. I raised the issue with the atty about how the IRS amount was half of my rent and he brought up that there were too many low income people in this city and that killed the rent rates. I said that I had found these rents in two places, smack in the middle of crack and meth hell. That is it.

I may see about dragging things out for a bit. One way or another I will have to stockpile money as the money I will have left after this plan has to cover food for me and pets, gas and car maintenance, utilities in the summer, insurance and any emergencies that will inevitably come up.

[OhioFiler]

Unfortunately I own nothing. My only secured debt is my car and a couple pieces of furniture recently purchased. I was denied a mortgage because my minimum payments were too high in their eyes. I mistakenly thought that the car and student loans would not be included in the 13, but as standalone payments. I will still owe S/Ls when discharged!

Rent is an issue, not because of a BK (I am not behind on it) but because of normal annual hikes. I talked my way into my last year's rent once. I doubt I will be able to do it again. I raised the issue with the atty about how the IRS amount was half of my rent and he brought up that there were too many low income people in this city and that killed the rent rates. I said that I had found these rents in two places, smack in the middle of crack and meth hell. That is it.

I may see about dragging things out for a bit. One way or another I will have to stockpile money as the money I will have left after this plan has to cover food for me and pets, gas and car maintenance, utilities in the summer, insurance and any emergencies that will inevitably come up.

I would think the landlord would be willing to work with you. You have it already set in your mind that it won't happen. I disagree, it's negotiable.

[flyinbroke]

I doubt I will get the promo rate. They will push the 300 raise, but say "for a year lease we will only raise it 100." This is what they did this year, citing expenses and taxes. I said I understand that but I did not get any raises, and I am also paying taxes. They left it alone. I like my complex and it is convenient to everything, moving probably won't be an option between not paying several bills and/or a CH13.

Even if expenses remain the same I am not sure that 800 a month for food/gas/insurance/utilites/everything else will work. But this was my first foray to an attorney's office. Will be checking out others since a 13 usually only requires a small retainer to start rolling.

[OhioFiler]

I doubt I will get the promo rate. They will push the 300 raise, but say "for a year lease we will only raise it 100." This is what they did this year, citing expenses and taxes. I said I understand that but I did not get any raises, and I am also paying taxes. They left it alone. I like my complex and it is convenient to everything, moving probably won't be an option between not paying several bills and/or a CH13.

Even if expenses remain the same I am not sure that 800 a month for food/gas/insurance/utilites/everything else will work. But this was my first foray to an attorney's office. Will be checking out others since a 13 usually only requires a small retainer to start rolling.

You've probably not spoken with the decision maker. Always find the person in the organization who is responsible for making such a decision and address them directly. You'll be amazed how easy it is once you find the right contact.

[SweetGeorgia]

Well, if your salary is protected and you don't own anything, the "screw it" plan might work just fine for a while. At the very least, you could build up cash and you won't have any fewer options 6 months or a year from now. Don't keep money in the bank. If you don't live in Texas, open up a USAA bank account (your creditors can take judgments to another state, but it's a PITA and takes longer than seizing local accounts).

[SweetGeorgia]

Never mind, I see you do live in Texas! Where's Navy Federal Credit Union? Or some other bank - just find one with no locations in Texas. Those prepaid Green Dot cards are issued by a Georgia bank.

[flyinbroke]

I live in Texas, and do have USAA (it was my eBay play account...it has a dollar in it because no one is playing on eBay lol.) My main account is in FL, but this is one where I had paid out in the past. I keep it since I have two CU accounts there, and my car payment is pulled from that one. Our company recently went to the option of the pay card (no banks necessary, though paying by check is a major PITA) and the rest of my money (military pension and VA disability) is exempt though not sure about bank accounts there.

Georgia, that is what I am thinking. BK is going to happen, it is a matter of when. If I have to do a 13, the "asset" thing is not as big an issue. Stockpiling a good solid emergency fund and maybe paying off smaller things (IRS and such) will help get me in a better situation.

NFCU is in Virginia.