indygirl
01-31-2005, 02:55 PM
I just had an initial consultation with a BK attorney. My situation is as follows -- income $38K, unsecured debt $27K, auto loan $26K remaining payments / $22K payoff amount / $15K FMV. I am a renter, and have no non-exempt assets. My original intention was to file Ch7, and reaffirm the auto loan. Including the auto loan payment, my post BK monthly “surplus” would be about $300. My plan was to save approximately $200 per month, so that in 5-6 years, I would have a decent down payment amount for a condo.
The attorney, however, advised me that it would be best to file Ch13. We can do a “cramdown” on the auto loan, and my total Ch13 payment would be around $390/month – only $20/month more than I was planning to pay for the reaffirmed car loan in the Ch7. There is some concern about unsecured creditors filing an “objection” to my Ch7, because about $10K of that debt was accumulated in the last year (due to temporary job loss).
Here are my questions: will I be able to accumulate a savings account while I am in my Ch13 repayment period? Or will the trustee just see that as a sign that my repayment amount should be higher, and readjust accordingly? Similarly, if (after my current apartment lease expires) I want to move to a cheaper apartment to save more money each month, will that backfire the same way?
Also, he advised me not to bother paying any upcoming debt bills. I know that anything over $100 in my checking account on the day I file can be confiscated. Best-case scenario, if I can get all the paperwork done and the filing completed in the next month, that’s about $800 I won’t be sending out. Obviously, I know better than to try to hide that money from the court, but do I have to spend it? Or can I use it to open a savings account / emergency fund (which I will definitely need, since I won’t have any credit cards any more)?
These questions didn’t occur to me until after I left the attorney’s office, and frankly, I felt too stupid to immediately call him. Any advice you can give is greatly appreciated!!
The attorney, however, advised me that it would be best to file Ch13. We can do a “cramdown” on the auto loan, and my total Ch13 payment would be around $390/month – only $20/month more than I was planning to pay for the reaffirmed car loan in the Ch7. There is some concern about unsecured creditors filing an “objection” to my Ch7, because about $10K of that debt was accumulated in the last year (due to temporary job loss).
Here are my questions: will I be able to accumulate a savings account while I am in my Ch13 repayment period? Or will the trustee just see that as a sign that my repayment amount should be higher, and readjust accordingly? Similarly, if (after my current apartment lease expires) I want to move to a cheaper apartment to save more money each month, will that backfire the same way?
Also, he advised me not to bother paying any upcoming debt bills. I know that anything over $100 in my checking account on the day I file can be confiscated. Best-case scenario, if I can get all the paperwork done and the filing completed in the next month, that’s about $800 I won’t be sending out. Obviously, I know better than to try to hide that money from the court, but do I have to spend it? Or can I use it to open a savings account / emergency fund (which I will definitely need, since I won’t have any credit cards any more)?
These questions didn’t occur to me until after I left the attorney’s office, and frankly, I felt too stupid to immediately call him. Any advice you can give is greatly appreciated!!