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Filing tomorrow

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    Filing tomorrow

    After being a faithful reader of this board for 6 months, I am signing the final papers tomorrow and attorney has promised to be filed by COB Friday.

    Situation:
    I have 90,000 in cc debt (which I stopped paying 6 months ago) and a 45,000 loan from my parents. We are proposing a 55% payback plan.

    Concerns:
    1. The attorney is including that loan in the plan, and my parents intend to file a claim. (Yes, we actually signed an agreement when I borrowed the funds 5 years ago). My parents aren't very wealthy, recently retired, and they got the money by taking out a 2nd mortgage. So I am really, really hoping that the trustee doesn't object to including the loan.

    2. I am afraid of living on a budget for the first time in my life (yeah, that's how I got here).

    3. If the plan is approved as proposed, I think that I can make it for 60months...$200-300 more into the plan each month and life could get very difficult.

    4. I have potential to make large bonuses at work (like 20-30K/year). The thought of them going directly to the Trustee (and not reducing the length of the plan---or going into my empty 401K account) is highly discouraging--to the extent of making me not-so-interested in doing what it takes to EARN those bonuses (ie, doing a good job).

    Mentally/emotionally...this has already been tough, and will probably get tougher. I keep reminding myself what I have read here at least a few times:

    "It's only a business decision"

    thanks to all. I'll post if anything of value/interest comes up as my case progresses.

    #2
    GL to you. I know the road ahead looks long but it will go by quickly.

    Comment


      #3
      things went well

      the plan looks truly manageable...my means test figure was within $100 of my actual expenses, so if approved I think i can make it work.

      One odd thing concerning early payoff: my attorney (a fairly prominent local BK attorney) says that even though I am only paying about 50% to my unsecured, that if i ever have cash on hand to retire that 50% figure, that it would end my Ch. 13 early? I expressed surprise, wondering if instead the Trustee would use it to increase the % payback...his answer:

      "not if he never sees the money...if you just pay it to the address/lockbox directly he will never know, and it will simply show as if my agreed to plan has been paid in full"

      Sounds great, but I'm really confused about that...doesn't seem to agree with anything I've read here

      Comment

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