Budget Help

[earningslost]

please help me figure out the ins and outs of a budget~ i am currently in a Chp. 13 plan with a very high payment. my question is... lets say when you have to go to the doctor and haven't met your deductible you then have a bill for $90. which is not in the budget. what do you do? let it go to collections, don't go to the doctor, or pay your attorney more money to go to the trustee???

[Flamingo]

Been there...you have to slice the money from somewhere else or start a small savings fund on the side where you will have extra funds available when events like you state arise. You will have to save what you can out of your budget...I know it is hard but we did it. One thing that worked for us was tossing our extra change at the end of each day into a big jar and not touching it. You'd be surprised how that adds up and you have cash available to cover something. We used it for birthdays and holidays. Bills incurred after your filing are your responsibility and you will need to find a way to pay them. Do not let them go to collections. Work out a payment plan if possible - advise them you are in active Chapter 13 and would greatly appreciate paying that amount in maybe 3 installments as you do not have credit cards.

Yes, some folks avoid going to the doctor due to those payments or maybe something that is not covered....but with great budgeting and planning, you won't have too much to worry about. A Chapter 13 is a huge lifestyle slap in the face. In the past, it was so easy to whip out that credit card for an expense like this...now it is only cash only and you live on a strict budget.

If you do find yourself continually struggling, contact your attorney. But the court did find you would be able to make those Plan payments or you would not have been confirmed.

Best of luck to you.

[earningslost]

yeah well if my attorney would have put real numbers into my plan it would have maybe worked. change we have no change-
Income - take home pay
$8600
Savings
$0
Emergency Fund
$0
Expenses
IRS $350
House Pmt. $2900
Car#1 $772
Car#2 $558
INS. $380
Utility $480-$670
WATER $125
Phone/TV $160
CELL $250
HOA $83
School $235
Groceries $900
Gas $500
Ortho $105.75
Medical $100
Supplies $100
Prescriptions $60
Clothing $250
Car Maintenance
$75.00
Home Maintenance
$200
Pet Care average for the year $150
Alarm $25
Drinking Water $45

Total $8778.75

Available funds
-178.75

there is not $ for the $2000.00 a month plan payment HELP!!!!

[Flamingo]

When did you file and how long have you been making payments? The cost of gas and food has hit everyone and to someone in a Chapter 13 can be awful. Some of your items should have been upped a little by your attorney to see you through instances such as this. Or you will have to cut down your food, gas or something else to free up some money to cover things. Do you really need a cell phone since you have a home phone? You can obtain prepaid phones to cut costs if a cell is needed. We gave ours up and opened another account at a later time toward the end of our Plan. As I previously stated, if you are severely struggling, contact your attorney. You do not want to miss any of your Plan payments.

Only you know where you can possibly cut some items and you may find you have to be very creative to do so and just have to learn to do without somethings to do so. Unfortunately, that is Chapter 13.

Did you file Chapter 13 to keep your home? It's possible you just cannot afford it or afford the vehicles.

[imbroke2]

$900 for groceries? I spend about $200 for a family of 5 every 2 weeks (so $400 a month). I would definitely start looking at the grocery bill first-clip coupons, shop at cheaper stores, etc. And the alarm, is that really necessary? You have to take a step back and really look at what you want and what you need to get through this.

[WoodSprite]

I spend about $200 for a family of 5 every 2 weeks (so $400 a month).

That is quite impressive, imbroke! You could probably make a mint writing a book (or at least a blog) about how you manage that...

[Over our heads]

So I can't even imagine where you live that some of those expenses fly with anyone, let alone a BK trustee.

Income - take home pay
$8600
Savings
$0
Emergency Fund
$0
Expenses
IRS $350

House Pmt. $2900 This I say nothing, as ours is 2500$, and our
take home considerably less.

Car#1 $772 This is WAY too much. Sell them both and get 2 cars
Car#2 $558 that cost 500-600 per month TOTAL.



INS. $380


Utility $480-$670 Utilities to me include phone,cell,water,cable
gas, and electric. If this is your gas and
electric only, you need to move.


WATER $125 For one month?!


Phone/TV $160 Too much.


CELL $250 WAY TOO MUCH


HOA $83 A month?! 996 a year. Hmmm


School $235


Groceries $900 How many people you feeding? This family of 6
w/ 2 in diapers lives on 600$ a month, and I
am not a coupon queen.



Gas $500
Ortho $105.75
Medical $100


Supplies $100 Supplies for what....


Prescriptions $60


Clothing $250 Getting no sympathy here. 250 a month for
clothes is ridiculous.


CarMaintenance $75.00

Home Maintenance $200 If your house costs you 200 a month in
repairs, there is seriously something
wrong.


Pet Care average for the year $150
Alarm $25

Drinking Water $45 By a brita pitcher and re-usable water
bottles. Or better yet, that 125$ a
month tap water you are paying for.


That is all harsh, but you seriously seriously SERIOUSLY need to step back and look at those numbers.

[woeisme]

The reason your attorney didn't put in money for an "emergency" fund is that your expenses are already very high in several areas, no way would the trustee go for an additional amount for routine things. For example, $200/month for home maintenence. The trustee is going to say if there is a doctor bill one month, maybe you don't have the lawn service come in and cut the grass that month. $250 for cell phones plus another $160 for phone/tv? Is that seriously necessities? And you have $100 for medical in your budget already. Basically the trustee knows that these numbers won't be required in every category every month, so it is your responsibility to cut down on expenses when you can to save for those unexpected expenses when they arise. I know you say you have a -178.75 budget as is, but I see a lot of fluff in it. Chapter 13's aren't easy. You have to scrimp and save. You have to change your thinking about what is necessary and what is not. $250/month for clothes??? That's what I spent for my 13 year olds school clothes for the year (well, he'll get a few more things for Christmas and his birthday). I know everyone's situation is different, some things might be necessary for work for one person but unnecessary for someone else, but to make your CH 13 work, you are going to have to decide which areas you can scrimp from for those unexpected bills. Good luck!

[earningslost]

We did not file to keep our home- Texas is a Homestead Exempt State the house pmt includes escrow for Ins. and Taxes with a 5% interest rate. We asked if we should get rid of the house but our attorney said at the time we would not qualify for a better rate or be able to sell the home. The vehicles are outside the plan as well one is a lease and it was our understanding that we could not put a lease into the plan and the 2nd vehicle is @ a 1.2% interest rate. We have been in the plan since October 07. We made our first two payments Nov. and Dec. We work on commission and made less $$$ so in Jan. and Feb we could not make the plan payment where we were given a stay- then we made the March, April and May payment then fell behind again in June for a water leak repair, tire damage, and a towing vehicle exp., kids eye exams and lenses, then in July received a dismissal threat from the trustee. We then came up short in Aug. and September with emergency home damage repair, and emergency hospital vet bill and I think the biggest thing is when we have made the payment we've fallen behind on other bills making it just harder to pay back. We've missed three payments and just short on two of the payments now. Should we sell the House? And if so... will someone rent to us or even let us barrow now that we have filed?

[WoodSprite]

That is all harsh, but you seriously seriously SERIOUSLY need to step back and look at those numbers.

I have to say that was my first impression, too, but I thought it might just be me, since her car payments alone would eat up all but about $100 of my entire INCOME.

This is coming from someone who hasn't bought a new item of clothing - you know, from someplace other than Goodwill - in about five years, but I'd at least think about taking that $250 clothing allowance and using that for an emergency fund to cover the unexpected expenses. I see you're already budgeting $340 for medical, ortho, prescriptions, car maintenance, plus another $200 for home maintenance, so I would think that many of those expenses would be already provided for?

Everything is relative, I realize - but I'm afraid you're going to need to find a way to live more frugally if you're going to survive your ch13.

[earningslost]

And you have $100 for medical in your budget already.

[Flamingo]

What you are experiencing is the main reason Chapter 13 plans fail. I indicated in another recent posting I made to someone in a similar situation that the BIG lifestyle change that comes with a Chapter 13 jumps up and slaps you hard in the face unless you are willing to learn to live frugally, stay at home and give up a lot of things. Without doing that, your plan will fail. It's an eye opener to say the least and it's hard to explain to friends, family and coworkers that you can't go out to lunch anymore, take that vacation trip or take the kids out after school for ice cream. It all has to go if you want to get out of your financial situation. Look at it this way, if you want to keep your house and all that you have right now, you will figure out a way to make it all work. We wanted to keep our house so we cut things to the bare bones and just learned how to say "no, we can't...sorry...maybe when things are better for us." Believe me, people understand. Cut the cell phone, cut the food and a few other things you list and you will see things improve. We did it and others have done it. You just need to look at what is important to you in all of this. If the home is strapping you, talk to your attorney. You vehicle payments are unreal and they were probably newer vehicles when you financed them and therefore are paid outside your Plan and could not be crammed.

It's all up to you...you already have a confirmed plan in place and have to figure out whether or not you actually want to make it work or let it fail.

[WoodSprite]

We work on commission and made less $$$ so in Jan. and Feb we could not make the plan payment where we were given a stay- then we made the March, April and May payment then fell behind again in June for a water leak repair, tire damage, and a towing vehicle exp., kids eye exams and lenses, then in July received a dismissal threat from the trustee. We then came up short in Aug. and September...

Wow - I can't imagine the stress of trying to complete a ch 13 plan when you both work on commission. We managed to make a (meager) living as musicians for quite a few years, so I do have some idea what it's like not to know where the next nickel is coming from. It's got to take a hundred times the self-discipline to stick to a budget in that situation - how did you even come up with a plan?

I'm afraid Flamingo's tough love advice is your only hope, though. Good luck to you, earningslost.

[earningslost]

So I can't even imagine where you live that some of those expenses fly with anyone, let alone a BK trustee.

Income - take home pay
$8600
Savings
$0
Emergency Fund
$0
Expenses
IRS $350 " this is new"

House Pmt. $2900 This I say nothing, as ours is 2500$, and our
take home considerably less.

Car#1 $772 This is WAY too much. Sell them both and get 2 cars
Car#2 $558 that cost 500-600 per month TOTAL. "will somebody lend to us now?" ones a lease we can't sell it????



INS. $380


Utility $480-$670 Utilities to me include phone,cell,water,cable
gas, and electric. If this is your gas and
electric only, you need to move. " I agree"


WATER $125 For one month?! "Yes for three months, we had water leaks twice and a Drought" Our new bill this month is $65.29


Phone/TV $160 Too much. "It used to be way more until we combined the two"


CELL $250 WAY TOO MUCH " agree" I hate cell phones but they will charge us to break the contracts $200 a phone"


HOA $83 A month?! 996 a year. Hmmm $275 "no $825 a year but we've been late making the pmt so they tack on late fees"


School $235


Groceries $900 How many people you feeding? This family of 6
w/ 2 in diapers lives on 600$ a month, and I
am not a coupon queen. "We have one store chain here and they are expensive" what we used to spend has doubled just with increasing fuel cost which in turn has made everything go up" we don't go to the store only when we have to" the national average is only $514 so thats what we're given as ext.



Gas $500
Ortho $105.75
Medical $100


Supplies $100 Supplies for what.... "Pool/Spa, Cleaning, Lawn mower/edge, School pictures, school lunches, we have two teenagers, I also run a business!"


Prescriptions $60


Clothing $250 Getting no sympathy here. 250 a month for
clothes is ridiculous. "its what the law says we can have- we don't ever really have it to spend" and haven't- our children did not get back to school clothes this year... which they took in stride


CarMaintenance $75.00 " we don't have this either" i haven't had an oil chg on my car since we filed its a lease i can't sell it or i would

Home Maintenance $200 If your house costs you 200 a month in
repairs, there is seriously something
wrong. " YES" two water leaks, pest control for scorpions and termites , salt for the water softner, caulk and paint repairs if you take an average of the unexpected this is what we need to present to our attorney YES"


Pet Care average for the year $150
Alarm $25

Drinking Water $45 By a brita pitcher and re-usable water
bottles. Or better yet, that 125$ a
month tap water you are paying for. " we have rust in the water" not drinking it!"


That is all harsh, but you seriously seriously SERIOUSLY need to step back and look at those numbers.

after looking at this what should the payment plan be???? Not harsh at all- we just need help in figureing out- I'll do what whatever...

[earningslost]

Wow - I can't imagine the stress of trying to complete a ch 13 plan when you both work on commission. We managed to make a (meager) living as musicians for quite a few years, so I do have some idea what it's like not to know where the next nickel is coming from. It's got to take a hundred times the self-discipline to stick to a budget in that situation - how did you even come up with a plan?

I'm afraid Flamingo's tough love advice is your only hope, though. Good luck to you, earningslost.

i didn't the attorney did the plan???? im missing something here!!! i'm just now trying to figure out this plan and try and make this thing work. we meet withthe attorney tomorrow i need a budget to take to her... i guess this one won't work????