Question about budget

[sophie]

We're going into a 13 and my question is does the trustee set up a budget for you to follow? How do they control it? Do you need to give them your paycheck every week? And what if you go over your budget, what happens? I'm VERY VERY scared!!! Also, what if they repayment they set up for you is too high and you can't pay it each month?

Thanks for your help!!!

[bkdone]

In Arizona, where we filed, the attorney does a worksheet with you to determine how much your payments will be. They will not set your payments so high that they are not reasonable. The payments are either deducted from your paycheck or you get the money order and mail them in yourself. The trustee doesnt come to your house or breathe down your neck. Frankly, you never see the trustee except for at the 341 meeting. And, good luck trying to speak to them directly ever again. But, then again...why would you want to?

Relax. Its not as scary as you think it is. Just make your payments and keep track that your payments have been appropriately rec'd and posted to your account. Relax!!

[Fedler]

Time to play grown-up. You get to keep your paycheck, pay your Chapter 13 payment, and BUDGET the rest of the money

ALL

ON

YOUR

OWN

You are now solely responsible for your finances. Obviously this scares the crap out of you 'cause you haven't ever done it before. Well now you learn. If you spend too much on food, you don't get to spend as much on clothes. This is how people live in the REAL WORLD. You've been living in the credit fantasy world where you can spend whatever you want on whatever you want.

The court ain't gonna take any less than the full payment you have to make. If you screw up and blow your paycheck on crap, you're gonna have to eat beans from a can and walk to work to make up for it.

The court isn't going to set a payment that's too high. They're going to set one you don't like because you won't get to buy all the toys you like, go on vacations all the time, and eat out every day.

Congratulations on joining the real world as an adult.

[sophie]

Obviously you are not familiar with the verse that talks about he who is without sin should cast the first stone.

I'm very grateful that the other people on this board are more understanding and helpful then you. I don't need you to talk down to me or to make assumptions about me and my lifestyle. I am what some consider a senior citizen whose husband lost his business. Although no business of yours I will tell you that the cc's are not due to buying "toys and things" but the need to pay my mortgage, food, taxes, etc.

Another verse you might want to read says before you take the speck out of your brothers eye, you may want to take the plank out of your own. I'll pray for you.

To BKDONE, thank you !

[SinkingFast]

Just ignore Fedler. Why he bothers coming here is beyond many of us.

If you use an attny to file your BK, the attny will go thru your Budget with and for you. Some things will be based on what you actually spend. Some things will be based on what the attny knows the Court is used to seeing in the way of expenses.

Your attny will have a pretty close "guesstimate" of what your Ch 13 plan payments will be before you ever decide to file.

[sophie]

Thanks so much sinkingfast. I appreciate all the advise and knowledge you and others have offered. The "not knowing" is very stressful and people like you really help relieve some of that stress.

Thanks again.

[Jman30]

Time to play grown-up. You get to keep your paycheck, pay your Chapter 13 payment, and BUDGET the rest of the money

ALL

ON

YOUR

OWN

You are now solely responsible for your finances. Obviously this scares the crap out of you 'cause you haven't ever done it before. Well now you learn. If you spend too much on food, you don't get to spend as much on clothes. This is how people live in the REAL WORLD. You've been living in the credit fantasy world where you can spend whatever you want on whatever you want.

The court ain't gonna take any less than the full payment you have to make. If you screw up and blow your paycheck on crap, you're gonna have to eat beans from a can and walk to work to make up for it.

The court isn't going to set a payment that's too high. They're going to set one you don't like because you won't get to buy all the toys you like, go on vacations all the time, and eat out every day.

Congratulations on joining the real world as an adult.

Seriously, what is wrong with you?? Don't come here talking down to anyone like that. If you can't say anything decent, then don't say anything.

You don't know that posters situation. When I first came to this board, I had questions and people here were just great to talk and I would like to think I return the favor here every chance I get.

You can offer constructive advice all day. But at least have the common courtesy to be a decent human being or don't bother posting here.

Sophie, don't listen to him. There are so many great people here like Sinkingfast, Bkbiker, 13inOR, Lprn and Minnymouth. Welcome to the board and feel free to ask any questions!

[brokentampa]

I don't think your tone is helpful to anyone.

Time to play grown-up. You get to keep your paycheck, pay your Chapter 13 payment, and BUDGET the rest of the money

ALL

ON

YOUR

OWN

You are now solely responsible for your finances. Obviously this scares the crap out of you 'cause you haven't ever done it before. Well now you learn. If you spend too much on food, you don't get to spend as much on clothes. This is how people live in the REAL WORLD. You've been living in the credit fantasy world where you can spend whatever you want on whatever you want.

The court ain't gonna take any less than the full payment you have to make. If you screw up and blow your paycheck on crap, you're gonna have to eat beans from a can and walk to work to make up for it.

The court isn't going to set a payment that's too high. They're going to set one you don't like because you won't get to buy all the toys you like, go on vacations all the time, and eat out every day.

Congratulations on joining the real world as an adult.

Give us a break. We're here to learn. Please take your anger somewhere else.

[aa06a47]

Fedler sounds like a 1) credit card lobiest, 2) Congressman (same thing), or 3) The President.

Fedler, you need to grow up and realize real americans have real problems.

[sophie]

Thanks everyone. Like I said not knowing what's going to happen is the worst thing for me. I could use all the advise I can get. It's too bad that Fedler is so rude because he did answer my question. I honestly didn't know how the whole budget/check writing works once you file.

Another question I have is about the payback program. I thought I read somewhere on here that they can make you payback 100% of the debt. Is that true? How could I do that? If I could I wouldn't need to file bk? Can someone explain to me how that works?

Thanks again for your support

[bkdone]

Thanks everyone. Like I said not knowing what's going to happen is the worst thing for me. I could use all the advise I can get. It's too bad that Fedler is so rude because he did answer my question. I honestly didn't know how the whole budget/check writing works once you file.

Another question I have is about the payback program. I thought I read somewhere on here that they can make you payback 100% of the debt. Is that true? How could I do that? If I could I wouldn't need to file bk? Can someone explain to me how that works?

Thanks again for your support

I am actually kinda new here too. I jumped into the forum at the end of my BK. Although Mr. Felder was rude...geez!!!... but what he is saying is true. The big picture of BK is that once you file and you are in the plan, you have to make your payments to the court a priority.

* Dont be late with your payments!
* Make sure you send them with Delivery Confirmation or something, so you can ensure that they got the payment. This will cost you $3-$5 extra, but its peace of mind.
* No matter how much you think you are bugging the attorney (his assistant) call them if you have a question or if you dont understand them. Call them everyday if you have to ... You are paying them.
* SAVE, SAVE, SAVE!!! You might actually find that once the payment plan kicks in, the payment to the court is alto less than what you were paying out before. Sometimes life under BK feels a bit cushy because you have a bit of breathing room now...all the bills are paid with one payment. DONT SPEND THE EXTRA.

Since BK rules only allow you to have less than $1000 in the bank, get yourself a small safe or a hiding spot at home. SAVE,SAVE, SAVE. I say this because, inevitably the car will break down 9 months into the plan or the kid will need braces. The roof will leak or something significant will happen, and you will need a way to pay for it. AND, guess what...? You wont have a credit card. I gave all my extra cash to my mom, who put it all in her savings account. When I needed it, the money was there.


* Lastly, I'd just say, relax, and realize that it isnt the end of the world. Its very scary at first, but after the first meeting 341, you wont have to see the scary trustee or your lawyer anymore. The lawyer calls me when they need something or have some info for me, or I get letter in the mail. But, everything goes very smoothly as long as you make your payments on time.

[Jman30]

Thanks everyone. Like I said not knowing what's going to happen is the worst thing for me. I could use all the advise I can get. It's too bad that Fedler is so rude because he did answer my question. I honestly didn't know how the whole budget/check writing works once you file.

Another question I have is about the payback program. I thought I read somewhere on here that they can make you payback 100% of the debt. Is that true? How could I do that? If I could I wouldn't need to file bk? Can someone explain to me how that works?

Thanks again for your support

I filed under the old law, so I am not as well versed on the new law as some people here. Basically, as far as I understand, you have to pass back at least as much in a 13 as a 7. They will look at the value of your assets versus how much you owe versus how much money you make and how much is secured versus unsecured and come up with a percentage.

[anonymuse]

We're going into a 13 and my question is does the trustee set up a budget for you to follow? How do they control it? Do you need to give them your paycheck every week? And what if you go over your budget, what happens? I'm VERY VERY scared!!! Also, what if they repayment they set up for you is too high and you can't pay it each month?

Thanks for your help!!!

You need to work with your attorney to show where you have been spending money. Then, unnecessary expenses will be trimmed by the attorney and the trustee will do the final review.

Just remember, it is the unknown that makes this scary. Knowledge is your power so read up on how the budget is developed. Look at your receipts, checking account, and credit card statements for the last 3-6 months are write down everything you spent on to come up with your budget. Don't forget payments that occur infrequently since they need to be accounted for also.

The trustee will be looking for reasonable, necessary expenses.

[anonymuse]

Another question I have is about the payback program. I thought I read somewhere on here that they can make you payback 100% of the debt. Is that true? How could I do that? If I could I wouldn't need to file bk? Can someone explain to me how that works?

After you determine your budget, it is subtracted from your income to get your disposable income. Then you pay that amount of disposable income every month for 3-5 years depending upon your median income.

The court does not determine payment based on some percentage. Here's an example how two people could pay the same amount, but their payoff percentage would be entirely different.

Both people have $500 disposable income x 60 months = $30,000

Person A owes $30,000 so that is a 100% payback (this is slightly untrue due to what the trustee gets, but I'm keeping it simple to make a point)

Person B owes $100,000 so theirs is a 30% payback

[miss puff]

In addition, you will not be paying any interest with the payback.