Ch 13 doesn't seem feasible

[toomuchdet]

Because we have equity in our vehicles, we'd have to pay back 75% of our debt under Ch 13. I think that isn't too much to ask of us since we're the ones that incurred the debt in the first place but it really isn't feasible at about $1000.00 per month for 57 months. If we didn't have the equity, we'd be looking at paying back only 3% of the debt at like $45/mo. Is there any way to negotiate this figure with the lawyer in order to arrive at an amount that we can afford? Paying back 75% of the total unsecured debt isn't bk to me at all. Why risk being labeled bk when almost all is going to be repaid?

Also, why wouldn't I rather consider a non-profit debt settlement company to settle the debt for us? They can save us about 65-70% of our total debt.

Another question: how far behind does someone have to get with payments before unsecured creditors start garnishing wages?

Thank you!

[rrockinggramma]

chapter 13

I am curious if your lawyer told you about having to pay back 75 percent because of the creditors "receiving as much in a chapter 13 as they would have in a chapter 13"?? Some of your vehicles can be exempted by your state's exemption laws and the purpose of the 13 is to not have you lose property that you would otherwise forfeit in a chapter 7. In our situation, we were told that our payment would be based on how much disposable income we had after expenses each month. So I am just wondering if a lawyer told you this info. thanks

[toomuchdet]

It was the lawyer that figured out the payment. As the figures go, maybe the most disposable income we have is about $300.00/mo. The vehicles are all paid for and as a result, we have about $34,000 in equity which is why the payback is so high. How in the world would we come up with an additional $1,000 for the next 57 months?! Yes, we could sell the vehicles but then we'd have to find financing to buy a car(s) in order to travel to and from work, another for dr. appts. and a car for one of our children to commute to college. We're in SC and I find it curious that if I had sold anything of value 6 years before filing, it could be suspected fraud. Six years?! Who would have thought six years ago we'd be faced with this tremendous debt due to disability? Geez! To top it all off, the atty needs $1200.00 up front to file. If I could afford his terms, I wouldn't be in this mess! Is there any other way?

[rrockinggramma]

talk to another lawyer. What vehicles do you have that would be worth 34,000 used (even all three together?) are they all new cars? I would be getting another opinion or 2 or 3.

[toomuchdet]

The oldest is a '91, then we have an inherited '96, a '00, and a '02. All are paid for. The '00 alone is worth about $18,000. I'll check out another lawyer. I'm not getting any warm and fuzzy vibes from this one. Besides coming up with a plan that was suppose to help me, he came up with something completely out of our means with no other options presented. In the figures I just gave, I didn't back out allowable amounts for exemptions. Sure wish I knew more about this stuff! Stressed and scared is putting it pretty mildly!

[rrockinggramma]

I am not sure what state you are filing in so here is a link to state exemptions. But I would definitely check out other attorney's in your area since almost all give a free initial consult. The 91 and 96 would have limited value. Anyway, here is that link and good luck.

http://www.cyberstation.net/paralegal/states.htm

[Heightsman]

If tomuchdebt has $34K in equity why would he (she) have a Chapte 13 plan that calls for paying back $57K?