what are the chances of a chapter 13?

[sofarindebt]

Our median income for Mpls, MN is $83K/year and my husband makes $65K/give or take a little with overtime.

What are the chances they are really going to dig into our expenses? We have been scraping to get by so if they want proof of our expenses they are unrealistically low the last couple of months. (making a lot of eggs and pancakes for meals).

Also, will they take into consideration that we have 3 kids under the age of 3? (twins and a 8-month old). Our grocery bill is more than the allowed becasue of formula and all 3 are in diapers.

Also, if you do get thrown into a 13, can you revise it later with the trustee? Our kids will eventually be going to school, so clothing and lunches and activities, childcare, etc. will get added to our expenses.

Sigh..................starting to get closer to filing so here the worries come.

[SinkingFast]

I really doubt it, SoFar. There are exceptions, of course, but generally speaking, I really doubt it.

During Consults, attnys told us the Court knows that couples in different stages of family life have different expense levels. Believe it or not, I'd trade you the expenses for teens to have the expenses for diapers and formula all over again. I believe diapers and baby food cost less than car insurance for teens!

[BK&Filer]

I really doubt it, SoFar. There are exceptions, of course, but generally speaking, I really doubt it.

During Consults, attnys told us the Court knows that couples in different stages of family life have different expense levels. Believe it or not, I'd trade you the expenses for teens to have the expenses for diapers and formula all over again. I believe diapers and baby food cost less than car insurance for teens!

Agreed - it is really doubtful you will have any problems. Unless you have some really out of the ordinary expenses listed I don't think they will even look twice (or ask any questions).

And double agree on the insurance - I have two teens now driving and the insurance....yikes!!!!!

[SinkingFast]

And double agree on the insurance - I have two teens now driving and the insurance....yikes!!!!!

The first attny we Consulted didn't even look at our income compared to the Median. He was pushing Ch 13 all the way.

When we got to auto insurance on Schedule J, he asked our monthly expense. I told him how much we pay every 6 months. He quickly divided it out on his calculator and said, "I've never seen auto insurance premiums that high before!" We said, "We have 3 teenaged drivers." He said, "We can't take this figure into the Court. The Court simply will not allow it!" And he proceeded to whack our auto insurance premium monthly allowance to what he thought was acceptable.

Guess what??!! The attny we hired took our auto insurance premiums in on Schedule J. As is. No modification.

[lrprn]

SFID, you said your husband makes $65K "with overtime". Will his overtime continue consistently month to month so that you can count on that money for 3-5 years if you are forced into Ch 13? And will there be any other sources of income coming into the family in the six months before you file?

If you do end up forced into Ch 13, your monthly payment amount can be modified, but that's typically done only when there's more than a 10% increase or decrease in income or other circumstances beyond your control (family member hospitalized with a large bill to pay, loss of job, pay cut, divorce, etc). Your lawyer files a motion to amend your plan with the court (costs extra - usually about $100-200) and it takes 6-8 weeks (or longer) to get approved (if it is approved) by the trustee.

And don't worry too much about your actual expenses being less than they should be. When we filed, our Ch 13 forms reflected the "reasonable standard of living" in our community, not what we actually spent after months of throwing every spare dime we had at debts that ended up bankrupting us anyway. We live in a community with a much higher cost of living than the rest of our state, and our living expenses reflected that when we filed. Your lawyer should be familiar what the bk trustees in your area will tolerate.

Good luck - keep us posted on what happens as your bk moves forward. And remember we're here for support and advice any time you need it!