New here..looking for an opinion..

[ladyjenn]

Ok, I modified some, I think this is realistic...I am going to try and copy and paste....hope this works...It is all living expenses/utilities except

Personal budget

May
INCOME
Wages 3,434.00
Interest/dividends 0.00
Miscellaneous 0.00
Income totals 3,434.00


EXPENSES
Home
Mortgage/rent
Home totals 767.49



Daily living
Groceries 525.00
Child care 308.00
Dining out 0.00
Daily living totals 833.00

Transportation
Gas/fuel 200.00
Insurance 90.00
Transportation totals 290.00

Health
Health Insurance 174.00
Dental Insurance 40.00
Braces 135.00
Health totals 349.00

Utilities
TV 99.73
Oil 250.00
Internet 27.00
Gas/UGI 15.00
Water/sewage/Garbage 78.00
Phones 71.00
Electric 125.00
Utilities totals 665.73

Store Cards
Macy's 18.00
Best Buy 20.00
Target 14.00
Lowes 21.00
Sams 125.00
JC Penny 37.00
Exxon 75.00
Fashion Bug 25.00
Store Cards Total 335.00

Misc Expenses
Misc Expenses 100.00
Total:

Credit Cards
Citi Financial Loan 161.07
Chase (1350) 159.00
Chase (7153) 151.00
Chase (9782) 61.00
Citi Card 124.00
Capital One Card 68.00
Bank of America 20.00
Credit Cards Total 744.07

Personal
Clothing 0.00
Gifts 0.00
Salon/barber 50.00
Books 0.00
Music (CDs, etc.) 0.00
Personal totals 50.00

Financial obligations
403 B 56.00
Life Insurance 143.00
Financial obligation totals 199.00

Misc. payments
Lunch Money/Kids 120.00
Misc. payments totals 120.00

Total expenses 4,453.29
Cash short/extra (1,019.29)


I revised..this is the bottom line.....nothing extra in there, really.

[ladyjenn]

I could take out the clothing....The $50 haircuts is for all 4 of us

How do you think it looks?

[blessed]

I think it looks like you're spending the bare minimums on food, clothing, other expenses so that you can squeeze out enough to pay the CCs. I also think you should stop paying them and file so that you can start living. GL!

[ladyjenn]

Thanks so much! I will wait and see what the lawyer says on Monday. I hate to ruin my credit by not paying if we aren't going to be able to file. I know if we file my credit will be shot anyhow. Right now my FICO score is 709(+-).

I will be sure to let you all know how we make out on Monday...it is our first consulting an attorney...

[blessed]

A couple thoughts about credit scores. First, if you stop paying but for some reason can't file you'll be in the position to settle with these CC companies. They don't want to settle with you if you're current. Do you really want to have access to credit right now anyway? Rhetorical question.

Also, with a high score like that you'll likely rebound quickly after the bk. Our combined score was around 698 and that's what our attorney told us. The consumer liability report they pulled for us estimated we'd be back at 636 within 12 months after discharge.

Your score will rebound, but if you're anything like me I don't want to use credit after all this anyway!

[ladyjenn]

Ture to all that Blessed! Thank you so much. You guys are wonderful in this forum. It is really scary to intentionally skip the first payment of a credit card.

[NewPage]

It is really scary to intentionally skip the first payment of a credit card.

BTDT, but once you start the process it's not so bad.

[Amadan]

It is the hardest step. Just make sure you rework your budget and see what you come up with WITHOUT the credit card payment. The idea is to try and go for the IRS standards on the things you have been missing due to paying the cards for so long. That way you pay back what you really CAN afford in a 13, and dont get stuck paying back too much and suffering for 5 years.

[ladyjenn]

BTDT, but once you start the process it's not so bad.

BTDT???

I know....I am such a newbie!

[helpmeout]

So your kids aren't going to outgrow the clothes they are in?

Your budget isn't realistic or doable at all.

Which is more important, your family or your credit score? Something has to give. You need to rework your budget to just the necessities. Clothes is necessary. Cable tv is not. The life insurance is a little high. Mine averages only $25 a month. And the payout amount on it is high. Is your policy whole life?

[ladyjenn]

Helpmeout, thank you.

The budget is based on what I spend, not what it "should look like".

Yes my kids ARE more important than my credit score.

Yes my life insurance is whole. That $ amount includes me & husbands and my two childrens policies.

Thanks for your help!!!

[keepinitreal]

BTDT???

I know....I am such a newbie!

BTDT=Been There Done That

[momofthree]

Helpmeout, thank you.

The budget is based on what I spend, not what it "should look like".

Yes my kids ARE more important than my credit score.

Yes my life insurance is whole. That $ amount includes me & husbands and my two childrens policies.

Thanks for your help!!!

Whole life insurance is a huge SCAM. Keep it for now as you want your expenses high if you file so that they can't deny your ch.7 and force you into a ch.13. But, after filing, definitely cancel the whole life and get term insurance--most also have riders you can add for your kids. This is assuming that you qualify for term. I realize that there are some people who are uninsurable due to certain medical conditions and for them the only option available is whole life...

To give you an idea....Dh has $500k, I have $250k, and each of our 3 children have $7500. We pay around $30 a month total. We are healthy & in our early 30s though....

[feelingnutsy]

Hey---ladyjenn---the first time that you don't pay is excruciating-gets easier.

[helpmeout]

Helpmeout, thank you.

The budget is based on what I spend, not what it "should look like".

Yes my kids ARE more important than my credit score.

Yes my life insurance is whole. That $ amount includes me & husbands and my two childrens policies.

Thanks for your help!!!

You may want to look into term life. It is considerably cheaper. Also, you may have the issue of the cash out value of the whole life policy being considered an asset.