New to chapter 13

[dylancarly]

Hello. I recently(July) had a chapter 13 confirmed. I am paying $339 a week through payroll deductions for five years. It has been a difficult and humbling process. Unfortunately I was spending money (credit) way beyond my means. My unsecured debt is about 160,000 which includes a 69,000 dollar student loan a 40,000 dollar mbna unsecured loan and credit cards. My payback on my unsecured debt will be 49%. I lost complete financial control over the last 10 years and did everything I could to try to set up reasonable payment plans with my creditors without success. My student loan is being paid through the plan at 49% however I will still owe the remaining balance with interest aftert the plan is complete. Unfortunately I am finding that many of my living expenses were underestimated gas, heat, food etc. I am married with two small children and I am stressing out with recent unpaid dental expenses, having no money to buy xmas gifts etc. I also have a HELOC that has risen beyond the amt. I put when I filed the paper work in February becase of interest rate increases. Does anyone have a variable rate mortgage that has increased and if so how is it handled? I dont want to refile an ammended plan because what if it ends up going back down? I was left with a 100 dollar cushion so maybe they would expect that to be used. In addition It was strange that when I filed the paperwork and used the IRS family off four expenses my payments would have been alot less however the trustee used my actual living expenses on schedule J that were alot less than the IRS. So basically I probably screwed up a little when figuring expenditures. Its hard to figure real expenditures when you have been living on credit and buying what you want for the past ten years. Well sorry I am rambling I just needed to vent its hard to look into your kids eyes when I make over 80,000 a year and cant afford to save for them for the next five years because of my stupidity. Well I am going to make it through this, focus on what I do have ,pray that nothing breaks down or needs repair and get my life back in order.

[SinkingFast]

Welcome to the Forum Dylan!!

We've all been there, so don't feel one bit embarassed.

Expenses are one of the toughest parts of filing BK. Remembering to include school lunch money, and firewood money, and PTA money, and all those little things you just don't think about. Or the expenses that come only once a year.

You probably do need to file for an ammendment to your plan. Your rate increase on your mortgage gives you the perfect "legit" reason to ammend your plan. BUT, first, I would suggest you save every receipt. Get documentation of the unpaid dental bills. Call your utilities, if you haven't been saving every month's bills, and get a printout of your usage/billing history.

When you file to ammend your plan, include an adjustment for all your expenses, as necessary. The Trustee may allow some, and not others. But, nothing ventured, nothing gained.

Ch 13 is meant to be tough, but you should be able to live.

[dadof3]

Hi Dylan, IM a newbie too, your story sounds a like lot mine? in fact when i saw the person i was going to use for our attorney , he is also a trustee and he was using our actuall expenses too!, $100.00 is not much of a cushion at all, does that me you have to file amendments every time a utility bill increases or gas prices go up?

[lrprn]

Hi Dylan, IM a newbie too, your story sounds a like lot mine? in fact when i saw the person i was going to use for our attorney , he is also a trustee and he was using our actuall expenses too!, $100.00 is not much of a cushion at all, does that me you have to file amendments every time a utility bill increases or gas prices go up?

If increases in expenses or secured payments (no matter what the cause) threaten your ability to pay the trustee his/her monthly payment, then yes - the only way to deal with this after your plan is confirmed is for your lawyer to file a request with the court to modify your plan. The alternative if you miss payments is dismissal - that is to be avoided at all costs.