Sooo...with the Probable Failure of our 7, and a 13 likely in our future...

[justbroke]

I was a Chapter 13 pro se filer. I came up with a Plan or Reorganization and it was confirmed with only objection from 2 creditors (car and real estate); the objections were minor. However, I did tell one auto lender how much interest they'd get. I decided not to contribute "extra" to the unsecured creditors, so they were to get 0.2% (which would be 0% under Lanning).

A (Chapter 13) plan can be confirmed over the objection of the Trustee and creditors. It happens all the time.

[andy158]

Don't forget the budget lessons learned while in a 13 folks. We are approaching the half way point on ours and I can't believe we will be absolutely free of over $100k in debt in 2.5 years! I am happy and not looking over my shoulder anymore. We will have no more credit cards, ever. We save money now even while in this plan. Something we couldn't do before bk.

The initial shock of going into a 5 year plan is expected. You have to change your habits and lifestyle. If you were in credit counceling you would be forced to do the same thing, but without the legal protection. Bottom line is it works because it forces you to make it work if you want out of debt.

We were on the edge for our median income as well (West Virginia has a very low median compared to neighboring states and I work in Ohio), but opted to go for the 13. It is truely the best alternative.

[AZNoName]

The initial shock of going into a 5 year plan is expected. You have to change your habits and lifestyle.

I couldn't agree more. It's a hard pill to swallow, but if your attorney helps to budget your plan well enough and you can save an emergency fund, it should be pretty liveable. Our plan payment seemed like a shocker, but in the grand scheme of things, we'll be out from 300K of debt and a house underwater by 120K in 5 years, with not a whole lot more than what we were paying already (which in our case, is good news!)

[chrisdfw]

You don't have to convert to a 13, you can let it be dismissed and file a 13 when you are better prepared to deal with a 13.

Get legal advice, I am not a lawyer, but based on your other posts, i might go into a 13 driving reasonable but newer vehicles and maximizing all my allowable expenses to get the payment lower and where as much of the payment as possible benefits me, by paying off assets I will own at the end, vehicle, etc. Don't take this to suggest buying a new 50,000 mercedes, but 5 years is a long time and going in with newish, reasonable cars is prudent if you ask me. Obviously you need to understand how things work in your district. You may also discover that using a different 6 month window in a month or two allows you to pass the means test, you never know.

I would not be so distraught about the 13, but I wouldn't go in unprepared either, it sounds like maybe you aren't in the best position right now. Talk to your attorney, you can allow it to be dismissed an file again when you are ready, but don't wait too long, get your fresh start and move on with your life.

Breathe a little and relax, you need to consider the big picture. I think a 13 might be more flexible than you think, your attorney should be giving you some idea of what it will be like, and giving you advise. You don't have to rush. If your attorney is not doing their job, you can let it get dismissed and get one that you are more comfortable with a try again, but better prepared.

[LadyInTheRed]

Then they control you financially for that 5 year period.

Get a raise? Tell the TT. Come into money? Tell the TT. Want to buy Christmas presents for your kids? Forget, it, cuz the TT says so. And don't even think about a Vacation in the 5 year period.

Alroth, you are in fear of a Chap 13 based on your assumptions of what life is like in a 13.

I've received 2 raises and 2 bonuses since I've been in Chap 13. I told my attorney every time, and every time he said "congratulations." Nothing was reported to the trustee. I buy Christmas presents for my family. My trustee doesn't want to hear about them. She has better things to do than track my spending. If I do receive a raise so significant that it would increase my plan payment, I know that all that raise will be mine when my plan is complete. It's better than no raise at all!

I make my own financial decisions every day. The trustee is just a person I send a money order to every month. That money order is for less than half what I used to pay to credit card companies and my second mortgage that is getting stripped. The bankruptcy has so little effect on my daily life that I might forget to send in my plan payment sometimes if I didn't participate in this forum. That's how easy it would be to forget I am in BK.

I can't go on vacations to Mexico like I used to. I do go on vacations to places closer to home that I can drive to. I wasn't really able to afford those vacation anyway. I was working hard and making enough money to take vacations, if only it weren't for the credit card debt I had built up. I convinced myself I deserved those vacations and used credit to pay for them. Actually, I still do believe I deserve those vacations. When I am done with my Chap 13 and no longer a slave to my debt, I'll be able to afford to take them and pay cash. Old habits are hard to break. My Chap 13 forces is me to break the habit of pulling out a credit card whenever I want something I don't have cash to pay for and replace it with the habit of planning and saving for what I want.

Maybe that sounds ridiculous, but it also sounds like a life of more "freedom" than what's staring at us in the face for the next 5 years

I'm 20 months into a 5 year plan. I feel much more free now than when I was working to make minimum payments on my credit cards and not making any dents in the balances. I have more money to spend and save then I did before filing. I can't imagine feeling free if I had to decide where to live based on whether a judgment creditor can garnish my wages or worry about not depositing my money in an account that can be levied.

Yes, it would have been nice to file a Chap 7 and get rid of my debts all at once. But, I make too much money. Making too much money is a problem I hope to continue to have. I feel much more fortunate than those who file Chap 7, but go into their new start with such low income that they will still have to struggle to make ends meet with no end in sight.

Chapter 13 is tougher for some than it is for others. But I don't see how a 5 year Chap 13 can be worse than dealing with creditors and judgments for who knows how long.

[karm43]

Sorry I live in Pa. They do not garnish your pay but still can get a judgement they can freeze your bank accounts, and sell your things that are not exempt. Ha I was thinking about moving to a state that I do not have to pay state orlocal tax, not to mention high heat bills. Also snows here and very cold. Bottom line they will find you. Sorry if i seem negtative cannot wait for this to start and end and be FREE

[karm43]

It takes a while to come to terms with you have to be in a chap 13 instead of a 7. I wanted a chap 7 then realized I have secure debt that I could not get out of. Just a thought if you buy a new car that will come off your dmi and you will not have to worry about it breaking down, also they have to lower interest rate, luv that....

[jange]

Alroth, you are in fear of a Chap 13 based on your assumptions of what life is like in a 13.

I've received 2 raises and 2 bonuses since I've been in Chap 13. I told my attorney every time, and every time he said "congratulations." Nothing was reported to the trustee. I buy Christmas presents for my family. My trustee doesn't want to hear about them. She has better things to do than track my spending. If I do receive a raise so significant that it would increase my plan payment, I know that all that raise will be mine when my plan is complete. It's better than no raise at all!

I make my own financial decisions every day. The trustee is just a person I send a money order to every month. That money order is for less than half what I used to pay to credit card companies and my second mortgage that is getting stripped. The bankruptcy has so little effect on my daily life that I might forget to send in my plan payment sometimes if I didn't participate in this forum. That's how easy it would be to forget I am in BK.

I can't go on vacations to Mexico like I used to. I do go on vacations to places closer to home that I can drive to. I wasn't really able to afford those vacation anyway. I was working hard and making enough money to take vacations, if only it weren't for the credit card debt I had built up. I convinced myself I deserved those vacations and used credit to pay for them. Actually, I still do believe I deserve those vacations. When I am done with my Chap 13 and no longer a slave to my debt, I'll be able to afford to take them and pay cash. Old habits are hard to break. My Chap 13 forces is me to break the habit of pulling out a credit card whenever I want something I don't have cash to pay for and replace it with the habit of planning and saving for what I want.



I'm 20 months into a 5 year plan. I feel much more free now than when I was working to make minimum payments on my credit cards and not making any dents in the balances. I have more money to spend and save then I did before filing. I can't imagine feeling free if I had to decide where to live based on whether a judgment creditor can garnish my wages or worry about not depositing my money in an account that can be levied.

Yes, it would have been nice to file a Chap 7 and get rid of my debts all at once. But, I make too much money. Making too much money is a problem I hope to continue to have. I feel much more fortunate than those who file Chap 7, but go into their new start with such low income that they will still have to struggle to make ends meet with no end in sight.

Chapter 13 is tougher for some than it is for others. But I don't see how a 5 year Chap 13 can be worse than dealing with creditors and judgments for who knows how long.

I second everything Ladyinthe red said. We take small trips, buy Christmas gifts, have money leftover at the end of the month. We only buy what we need, can afford and only pay cash.

I saved and we went to 8-9 MLB baseball games this past year and had a great time. Last night we went to a concert.

Except for the annual statement, I have not heard from the trustee and I have no reason to contact my lawyer, though I did see him in the foodstore about a month ago. He asked us how everything was going, I told him fine and he said glad to hear it.

Last month 2 separate repairs on my husband car cost $600+. It came out of my emergency fund and was paid in cash.

We are closing in on the 2 year mark, yes we still have 3 years to go. Yes I know anything can happen but life is so much easier now then all the years we struggled to stay afloat.
I send the trustee the money orders every month, life goes on and I see the light at the end.

[mountanddo]

Something else to think about.... I am in a Chapter 13 with DMI of $100/month for 3 years because I don't make that much money. I would gladly trade my 3 year BK for a 5 year BK to be able to have a new car. The people that have to actually buy things such as a car or home repairs or 6 months worth of household goods and food to get their DMI down really have nothing to complain about. Hopefully at the end I will have had a couple of raises and at the back end of my 13 I will be able to get a car loan. You have to think about how much worse it could be...and it can be.

[keepsmiling]

Something else to think about.... I am in a Chapter 13 with DMI of $100/month for 3 years because I don't make that much money. I would gladly trade my 3 year BK for a 5 year BK to be able to have a new car. The people that have to actually buy things such as a car or home repairs or 6 months worth of household goods and food to get their DMI down really have nothing to complain about. Hopefully at the end I will have had a couple of raises and at the back end of my 13 I will be able to get a car loan. You have to think about how much worse it could be...and it can be.

Nicely put.
Me too.
Good luck! (per your siggy... oh and your new avatar... who is that?)

[newbie2]

alorth, I (we, hubby and I) were in a Chapter 13 in Michigan. I am living proof that it *can* be done and it really isn't painful. Hubby got a raise in year 3, and the trustee didn't want a raise in our payments. Holiday and birthday gifts? Budget for them. It's not hard to do, and there is HUGE peace of mind in knowing that we paid cash for every birthday and Christmas gift. We also had one emergency in year 3 of our plan in which we had to ask the trustee to skip 2 payments. It was allowed, and quickly handled.

We made it to the end. YOU can also.

[alorth]

Thank you for all the replies....I am reading all of them and they are helpful.

Especially LadyintheRed, jange, and newbie2....thanks for relating your experiences.