Are you really comfortable

[gophermn]

So I am curious because I might have to go from a CH7 to a CH13. During the CH13 are you really comfortable when it comes to making payments to your trustee. What I mean is if you are bringing home $3000/month - do you have to give the trustee $2800/mo?

I know each CH13 is different for all of us, but do you really feel like the black cloud is lifting and you can breath a bit easier protected under the CH13?

[isitreal]

It really is different for each case. I know in my case I wasn't spending what I should on certain things. I was neglecting certain things that shouldn't be neglected. Clothing allowances, grooming (haircuts), etc would be pushed aside to pay some credit card bill a lot of times. Going over the numbers, I was actually allowed to spend more on those types of things and have them in my budget, where I really didn't before.

That being said, I have a 100% payoff plan. I do not have to pay all of my disposable income to the trustee. Around $60k in debt and I will pay around $1200 / month. This is with around $9k in income per month.

[lrprn]

What I mean is if you are bringing home $3000/month - do you have to give the trustee $2800/mo?

That doesn't happen. Your Ch 13 payment is set by the amount of disposable income showing on your Means Test and Schedules I and J. You should have enough to make mortgage payments, buy food and clothes, etc. and still be able to make your trustee payment.

If you have a good attorney who is experienced putting together livable Ch 13 plans, then you can live without harrassment from your creditors, make your payment to the trustee, and if you are a strict budgeter, even have some money left over at the end of most months.

Some of us are in Ch 13 because it was truly our only option. The majority of us 13ers would have loved to file Ch 7 and walked away in 3-4 months to start over.

However, believe me when I say that five years is nothing compared to many years of being hounded by creditors while your debt mounts and mounts, your salaries are garnished, assets are taken, and judgments are placed.

We're glad we filed Ch 13 and would do it again tomorrow just to feel the incredible relief and sense of hope we have now after filing.

[gophermn]

Thank you.
My Debt to Income is terrible. My monthly debt is close to $7200/mo and my salary is $4400/mo take-home. You ask how could that be? Well I bought a rental house that is close to foreclosure and that montly mortgage is about $2500/mo so you can now see the difference.

As you can tell I am a far cry from a Payment Plan of $1200/mo with a $9000/mo salary

I just hope things go my way like they have for you!!

Thanks Again, Terry

[isitreal]

As you can tell I am a far cry from a Payment Plan of $1200/mo with a $9000/mo salary

Well, when it all goes to bills you're not as far away as you would think. Having trouble affording groceries and gas without "floating" checks until payday? Worried about being able to buy the kids school clothes?

All of those things you are given allowences for as part of your living expenses. To me, just being able to afford life was well worth it!

[chpxiii]

It depends on what you mean by "comfortable."

First of all, I want to ditto lrprn.

Now. I was able to live comfortably. This is how I defined "comfortably:"

I moved to a cheaper apartment, and no it was not all that great. But I knew that if I could not find a job, going back to work as a checker in a grocery store would be more than enough to pay rent, food (including pets - I have 2 cats), utilities, car ins., and trustee. It rolled my car payment into the trustee payment.

Essentially, I was able to now afford to live. No, I couldn't eat out all the time, but I was able to enjoy the occasional movie and satellite tv for entertainment as well as Internet access. Creditors stopped calling and hounding me. It was a time in my life when I NEEDED someone else to take over my finances thereby allowing me to gain some modicom of control of my life..

That brought a HUGE amount of peace of mind. I could sleep at night. And knowing that things were taken care of, I was no longer desperate (employers pick up on that in interviews, I firmly believe that) and I could go into interviews confident and relieved.

In this time I have gone from making $12 an hour (when I filed) to making $80k / yr (started at that salary in July.) It was because I was in a chapter 13 - sheltered from creditors, finances taken care of, and working with an AWESOME AA sponsor - that I have been able to transform my life.

People seem to get all up in arms over being in a chapter 13. Fact of the matter is, we borrowed that money. And for all intents and purposes we "should" pay it all back. HOWEVER! Considering wretched loan practices (which creditors, I feel, are legalized loan sharks - they don't break your knee caps anymore but they mentally abuse you with collection calls) and the fact that Life. Just. Happens. Bankruptcy is a relief for those of us who needed the race to slow down a bit so we can catch up.

Chapter 13 is NOT BAD AT ALL. Yes, the trustee takes over your finances. But that's the trade off when you go and ask for financial relief of the courts from your creditors. Nothing is free. Protection of the bankruptcy courts allows you to pay back some or all of what you owe without the hound dogs biting at your heels. That, in and of itself, is worth it. Peace of mind.

Like has been mentioned, if you get a good lawyer, they will have you create a budget that will allow wiggle room to live life. I didn't know I could have money budgetted for entertainment! I thought that was a luxury. The courts don't necessarily want you to have a wretched existence (ok, some trustees I hear can be a-holes...). I was able to have a monthly budget for clothes (which is not a luxury, proper fitting and neat and clean clothes (not saying *new* clothes) are part of self care.) I was able to buy a better outfit for interviews which helped me to make an impression with potential employers.

Look at your chapter 13 payment as another bill. But it's a bill like breathing. You can't NOT breathe. You can't NOT pay your chapter 13 payment. As in not breathing, there will be dire consequences for not paying your chapter 13 payment.

Get a good lawyer who will help you budget so you'll be able to live with your chapter 13 payment plan.

[$$only4ever]

The key to a successful Chapter 13 is based on several things.

First, get a good lawyer who is comfortable with filing Chapter 13 Bankruptcies. Having a good lawyer makes all the difference between a plan where you struggle for 5 years or a great plan.

I was lucky. I had a good attorney and a fair trustee. My payment is 50% less than what I thought it would be. So my monthly budget has some wiggle room every month.

You have to learn to live on a "cash only" basis. Once you get used to that, I can honestly say it has not been hard at all.

I also view it as a loan payment which makes it a little easier.

[MOMof3]

I have to say that the 13 has been a relief! It was much worse before we filed. I have been getting better about budgeting (a skill that will help me beyond my 5-years) & am able to save up for emergencies, Christmas, etc... I feel more in control of my spending & that is comforting to me. It's not "easy", but I'm not drowning like I was before.

[gophermn]

Awesome replies - don't know how much better this makes me feel! Especially the quote "Look at your chapter 13 payment as another bill" very true!!

Funny that some of you mentioned about not doing things like getting haircuts or buying clothes - OMG - I thought I was the only one going through this.
Thank you and happy holidays!