OK, new user, getting ready to fill

[rjones04]

OK, Im new here and have many questions!!!! I have browsed almost the entire CH 13 threads religously to learn info!
1. Lawyer told me in free consulation today that I will pay for 36 months and im done right? (of course, I understand the trustee can change the plan to extend it, but assuming I pay 36 months then it is officially discharged?

2. A CH13 stays on credit report for 7 years right?

3. Once I file, fill out papers at the lawyers office is this the start of the official procedings. (in other words, will CH13 BK stay on my record from Sept.2005-September2012)

4. I have another family member that is thinking about filing, but might get a lump sum of lawsuit money in about 4-8 months. Should the individual report this to the lawyer and will this money from lawsuit be considered too much "disposable income" for the re-payment plan, to the effect of a ground of a dismissal?

5. Can I keep my checking and savings accounts still open to use during the 13? Can I have a rainy day account in savings, say about $4k without it being seized by trustee? The lawyer informed me, that it is okay for the savings amount to stay in account as long as my something like homestead limit isnt to high, which I dont understand.

6. I initially wanted a CH 7, but I informed the lawyer that I lied on CC applications for "household income" years ago when they were approved and he of course considered this fraud and would not go the "7" route with me. Also, he informed me that all money in savings for a 7 can be seized, but a 13 can be protected. Is he telling the truth?

Sorry for the long-winded questions, but Im getting ready to file next week and want all the information I can before I intially file. Is this lawyer telling me the correct information?

[hhou812hh]

OK, Im new here and have many questions!!!! I have browsed almost the entire CH 13 threads religously to learn info!
1. Lawyer told me in free consulation today that I will pay for 36 months and im done right? (of course, I understand the trustee can change the plan to extend it, but assuming I pay 36 months then it is officially discharged?

2. A CH13 stays on credit report for 7 years right?

3. Once I file, fill out papers at the lawyers office is this the start of the official procedings. (in other words, will CH13 BK stay on my record from Sept.2005-September2012)

4. I have another family member that is thinking about filing, but might get a lump sum of lawsuit money in about 4-8 months. Should the individual report this to the lawyer and will this money from lawsuit be considered too much "disposable income" for the re-payment plan, to the effect of a ground of a dismissal?

5. Can I keep my checking and savings accounts still open to use during the 13? Can I have a rainy day account in savings, say about $4k without it being seized by trustee? The lawyer informed me, that it is okay for the savings amount to stay in account as long as my something like homestead limit isnt to high, which I dont understand.

6. I initially wanted a CH 7, but I informed the lawyer that I lied on CC applications for "household income" years ago when they were approved and he of course considered this fraud and would not go the "7" route with me. Also, he informed me that all money in savings for a 7 can be seized, but a 13 can be protected. Is he telling the truth?

Sorry for the long-winded questions, but Im getting ready to file next week and want all the information I can before I intially file. Is this lawyer telling me the correct information?

I'm visiting mine next week for the same thing (ch13). It pretty much sounds like he's telling you the truth. He has to work in your best interest, so I wouldn't worry about anything. When did you lie about your household income? If it was years ago that probably won't even matter in a ch7. If you did it more recently like the past year, then that's probably why your lawyer told you to go into a 13 and he knows more then me.

Good luck!

[HHM]

1. Yes, that is correct, the minimum for a chapter 13 plan is 36 months unless you pay off your unsecured creditors 100% in a shorter period of time.

2. Bankruptcy can stay on your credit report for up to 10 years, but realistically, the negaitve effects of a bankruptcy only last about 1-3 years. (if your considering bankruptcy, your credit score should be the least of your concerns, you have bigger problems).

3. Once the chapter 13 petition is filed "with the court" does your bankruptcy start.

4. Yes, your friend should definately tell the lawyer. However, whether she will have to turn it over depends on the type of lawsuit. However, in a chapter 13, you generally don't have to turn such things over.

5. Yes,

6. although lieing on a credit app is cause to consider a debt non-dsicharable, its rarely invoked. The main reason it sounds like you need to do a chapter 13 is because you should protect certain assets (i.e. bank accounts). Just so you know, lawyers get paid more when they do a chapte 13, that doesn't mean they still don't have your best interest in mind (the must act in your best interests under their rules of professional responsibility). But if you did go chapte 7, your savings accounts would need to be turned over to the turstee.

The main factor in a chapter 13 is whether you have the disposable income to fund the plan. I.e. do you have more income than you living expenses.

[rjones04]

Thank you, hhou812hh for answering my questions. Have a couple more for you.
1. Can a friend of mine file a "13" or "7" with Social Security disability as a "disposable income."

2. If I was to get a pay increase dramatically/or heaven forbid lose my job/decrease in pay how does that affect my payment for a "13"

3. Can I mail the payments to the trustee instead of having it deducted from my payroll so that my employer knows my business.

4. I am reading on the forums that he/she should dump their bank account out except leave $100 or less on the day of filing?

5. Do I have to report the amount in my savings account on the petition, although I am informing the attorney of the balance in savings.

6. I understand that you can "re-affirm" an account where you want to pay the debt with in BK. But what about if I have a creditor paid in full at a $0 balance, do I have to list that account on the petition.

[hhou812hh]

Thank you, hhou812hh for answering my questions. Have a couple more for you.
1. Can a friend of mine file a "13" or "7" with Social Security disability as a "disposable income."

2. If I was to get a pay increase dramatically/or heaven forbid lose my job/decrease in pay how does that affect my payment for a "13"

3. Can I mail the payments to the trustee instead of having it deducted from my payroll so that my employer knows my business.

4. I am reading on the forums that he/she should dump their bank account out except leave $100 or less on the day of filing?

5. Do I have to report the amount in my savings account on the petition, although I am informing the attorney of the balance in savings.

6. I understand that you can "re-affirm" an account where you want to pay the debt with in BK. But what about if I have a creditor paid in full at a $0 balance, do I have to list that account on the petition.

Thank "HHM"! He's much smarter then me on this. He actully answered your questions.

[HHM]

Thank you, hhou812hh for answering my questions. Have a couple more for you.
1. Can a friend of mine file a "13" or "7" with Social Security disability as a "disposable income."

2. If I was to get a pay increase dramatically/or heaven forbid lose my job/decrease in pay how does that affect my payment for a "13"

3. Can I mail the payments to the trustee instead of having it deducted from my payroll so that my employer knows my business.

4. I am reading on the forums that he/she should dump their bank account out except leave $100 or less on the day of filing?

5. Do I have to report the amount in my savings account on the petition, although I am informing the attorney of the balance in savings.

6. I understand that you can "re-affirm" an account where you want to pay the debt with in BK. But what about if I have a creditor paid in full at a $0 balance, do I have to list that account on the petition.

1. Yes, for purposes of determining disposible income, SSDI does count.

2. Yes, increases and decreases in pay can effect the plan. If its a dramatic increase, the trustee may want to amend you plan to increase the payment. How does the trustee find out about your pay increase you ask?, your tax returns. If a significate decrease, then you can make a motion to decrease the payments. (any increase or decrease in the plan payments needs to be approved by the judge).

3. This depends on local custom, but generally, you should have the option to mail the payments.

4. If filing a chapter 7 then, yes; if a chatper 13, no. But the trustee will generally ask to see several months of bank statements, so you just can't empty it right before filing.

5. Yes, its an asset and you are required to list all assets.

6. No, you do not need to list accounts with zero balances. Also, in a chapter 13, you don't reaffirm debts.

[rjones04]

thanks a million hhm. This information has been extremely helpful to me! I am now ready to file next week. I have already set up an appointment to officially file, because I went to the consulation the other day. If I have anymore questions, I will let you know. I am a extremely nervous, because I have never filed before and have had excellent credit. I am including AMEX in my BK, so I guess that means I will never have one again But, thats okay, just a name of another bank to do service at.