Nubie, just filed, having second thoughts

[BrokeinGa]

I've been lurking here for a while, and wish I would have found this forum and researched more before filing. We filed 1 September and have our creditor meeting on the 22nd.

I guess once you file, there is no "unfiling", at least that's the way I read it. I had no idea that the trustee has such absolute, complete control of your life for the next 5 years. I was trying to donate a car to charity so I could stop the insurance and upkeep on it, and was told I would have to pay the value of the car to the trustee, even though the car is paid for and I would not be making any money on it. The car needs more work than it is worth, so that was the reason for donating it. The only thing I would get out of it is a tax writeoff.
I'm just not sure that we can make it 5 years with next to no disposable income. I'm really worried about what you do if an emergency comes up. What if my roof needs replaced, or a/c goes out in my house? There is almost no way to save enough money to put in savings with what we have left over. I am currently retired, but was looking at going back to work to help solve this and then find out that almost all of what I would make would become "disposable" income, and thus go to the trustee. I'm trying to not be a whiner, but I don't see how they can not expect the majority of people to fail at this within the 5 years.
We are not behind on house/car payments, but are deep in unsecured debt. With me not working (retired/disability pay) we are only having to pay the car and fees, there is 0% going to unsecured creditors. If I go back to work and thus would probably go to a 100% payback, does it make any difference how much money I would make then? The assistant at my attorneys office said it is all considered disposable income. This does not make sense to me, do they just jack up your payments and thus you payback in less time?

Also, as a side note, doesn't $4000 for attorneys fee sound kind of steep?

Sorry this is so long, I think I'm losing more sleep now then when the cc companies were calling.

[AngelinaCat]

Hi BrokeinGA: So sorry to read of your plight. Welcome to the forum. My husband and I are in the midst of a 7, but I found this thread that may help you. The earlier posts are old but the latter parts of it are updated.

http://www.bkforum.com/showthread.php?t=1481&highlight=hardship+13

Good luck.

[rrockinggramma]

by far the biggest adjustment in a chapter 13 is the lifestyle adjustment. When those issues you mentioned come up, you can cross that bridge at that time. But in 5 years you will be far better off than you are now. All of us panic in the beginning. You are not alone there. But you can't control what you don't know of yet and to worry about it until it does happen is just wasted energy. Concentrate on ways to make your NEW lifestyle the best it can be for 5 years. You now have control of your budget once again. And believe me, a chapter 13 is all about budgeting. GL

[ccgirl]

I have only been in this for a two months and I have noticed a big adjustment on how I spend my money. My husband did not file with me so we have the security of his credit card if needed, but we are trying so hard not to use it. I don't buy things I don't need. I really think everything through...I have even started cutting out coupons. The hard thing for me will be when I go back to work this fall (I am a teacher) taking my own lunch. I wanted to go to Texas to see family and I decided that until I have enough money to pay cash for the plane tickets we will not go. Before I would just charge them and say oh well I will pay it later. I have started to cut corners to be able to have more money left over and actually my savings account has more money right now than it has had in a long time...not much but more than before.

[justplaintired]

My question is are you over the median and that's why you choose a 13? I am just curious. Since you mentioned you are retired I am wondering if your income is what pushed you into a 13.

[BrokeinGa]

My question is are you over the median and that's why you choose a 13? I am just curious. Since you mentioned you are retired I am wondering if your income is what pushed you into a 13.

Yes, I'm over the median by quite a bit. I have my retirement income, VA disability and my wife works.

I interviewed for a job yesterday and got it. The problem is, is will be a commission only job after 3 months. So I have no idea what my income will be and am concerned about how much they are going to up my trustee payment. I emailed my lawyer and have not heard back from him. I have no idea how they will figure out my new payment. It will be scary if they jack it way up and now I"m under the pressure of selling just to keep my 13 intact. If the payment is going to go up to much, I"ll just stay retired. We can get by without me working, but like I mentioned it will be really tight.

[Flamingo]

by far the biggest adjustment in a chapter 13 is the lifestyle adjustment. When those issues you mentioned come up, you can cross that bridge at that time. But in 5 years you will be far better off than you are now. All of us panic in the beginning. You are not alone there. But you can't control what you don't know of yet and to worry about it until it does happen is just wasted energy. Concentrate on ways to make your NEW lifestyle the best it can be for 5 years. You now have control of your budget once again. And believe me, a chapter 13 is all about budgeting. GL

To the OP - rrockinggramma's quote above is right on. What is really scaring you right now is the unknown. It WILL be a hard go in getting used to not being able to do all the things you used to do or go out to eat, take trips, etc. The bad thing is if you cannot learn to change your lifestyle and continue with old ways of spending, etc., you may not be able to make your Plan payments and your Plan could fail. You don't want that to happen. You need to take it on as a challenge, make it work and the benefits come at the end. You will learn so much about budgeting and saving money and learning to do without than ever before over the next few years - it is a good thing and most, if not all, of it will stay with you after discharge and you will look back and realize you should have been doing a lot of it in the first place.

Best of luck to you! And $4,000 as to attorney's fees? That does seem a bit high to me for a Chapter 13 but when we filed in 2002 our total fee was $1,800 and with the new law taking effect in 10/05, most attorneys raised their fees tremendously due to the extra work and paperwork that came with the new law. It may be the norm for your area but you should have questioned the cost when given to you initially if you thought it was high.

Best of luck to you!

[BrokeinGa]

I guess my main concern is whether to go back to work or not. I'm already adjusting to the budget, watch what we spend mode. After looking at other attorney sites, that fee is not out of the going range, the other site I found said their fee was $3800.

I see you had an "early buyout", what exactly is that?