Auto insurance rate hikes during Chapter 13?

[Contemplating]

From what I gather, once you start missing payments your credit score starts to decline precipitously and then when your auto insurance comes up for renewal your rates can SKYROCKET.

Question ... if your Chapter 13 budget was put together with the older "lower" rates and you get a sudden increase do you file for a plan modification or how would you address this exactly?

[Flamingo]

Debt incurred after your filing date is not part of your Chapter 13 Plan and you are responsible for that debt/bill. So if your rates rise as to health, auto or house insurances after you file, you are responsible for the increases and will have to cut back somewhere to cover the increases. Everyone in a Chapter 13 goes through that experience. If the increase is very large and creates a problem for you to make other payments (i.e., Plan payment, mortgage, etc.), contact your attorney for a possible modification of your Plan.

[woeisme]

My auto insurance rate has actually decreased about $100 a year since filing, while the house insurance went up by about the same amount. So I wouldn't worry about things that haven't happened yet, they might never happen. Focus on the things you can control and that are in the here and now, or you'll drive yourself nuts.

[bpn2009]

From what I gather, once you start missing payments your credit score starts to decline precipitously and then when your auto insurance comes up for renewal your rates can SKYROCKET.

Question ... if your Chapter 13 budget was put together with the older "lower" rates and you get a sudden increase do you file for a plan modification or how would you address this exactly?

Our vehicle insurance has went down significantly since we filed in '05. The biggest budget buster was the $4.00 a gallon gas of which we had to suck it up as best as we could.

[Flamingo]

Our vehicle insurance has went down significantly since we filed in '05. The biggest budget buster was the $4.00 a gallon gas of which we had to suck it up as best as we could.

There will be insurance, food, gas, electric and all sorts of other fluctuations during a Chapter 13. That is why it is extremely critical to have a budget in place and to cut back/save wherever you can for the times when there is an increase or an unexpected bill like a huge car repair or house repair situation. Debts incurred after filing are the filer's responsibility. When/if they become burdonsome and increase to the point where it affects Plan or mortgage payments or one cannot make one of those payment, it is necessary to contact one's attorney.

Our attorney advised us that we would probably see increases in insurance and other items and to contact him if the situation became extreme where we could not make payments. Most plans include wiggle room to be able to adjust for those situations. Most can manage but others are bad with budgeting/spending and don't save/prepare for those things to occur and that is where the problems start. Our car and house insurances did not increase that much after filing or during our Plan but, as the other poster said above, even though we were already discharged the increase in gas over that one year period would hit anyone in any budget situation so planning/saving is critical during a Chapter 13 as anything can increase/decrease. If one is not used to budgeting, that can be a pretty scarey situation to deal with and learn how to handle.