Question about chapter 13 payments

[tadbitconfused]

Once you have filed and payments are confirmed... What happens next... what if one month you get extra money(bonus) do they have to re-adjust the plan.. or what... the lawyer said that they will be doing a wage assignment which is fine, just didn't know how often the plan will or can change...

Also do you have to provide receipts for things like groceries or gas every month is it like being under "big brother"... If I budget 400.00 for groceries and spend 300 do the bk gods come and take it from me???? Just not sure how it all works

Do they audit your every dime... How does it work... I seem to be worrying so much yet don't quite know why

[MajorMike]

Once you are confirmed, that is the payment you will pay every month for 60 months or however long your plan is. No, they don't check your expenses every month, but you may have to send the trustee your taxes every year. It depends on him/her....
Ours doesn't ask for anything EVER ( thank God ) but say your payment is $500/mo...well, you'll only pay that and nothing more or less. If your income increases signifigantly by say 10% or more, then you are supposed to tell your attorney ( this is based on the year as an average, not a one time thing ) and no, if you budget $400 for groceries and you only spend $300, then use that $100 and sock it away for an emergency. They won't ask you for it.

Read the board here, and do a search for your topic. There is TONS of info here about BK13 that will probably answer most of your questions.

[ruggal]

Here's what we did

This all depends on the Trustee in your area. I know ours does not want tax returns, and allows debtors 10% increase in income before they want the return ammended.

Right after our confirmation, I went to work cutting every monthly bill that I could. We were allowed more for groceries (son away at college 9 mos of the year) than we actually used for example. I've been making alot of pasta hehe, cheapest meal around. I called the cable company, cut $50 (we'll be screwed in July when it readjusts, have to switch or do another let's make a deal), and went shopping for new auto and home insurance, saved about $75 per month. Cut a huge amount from our monthly gas allowance by replacing surrendered Avalanche with a four cylinder beater of a stick shift we paid $600 for from a relative.

My husband lost his job about 4 mos into the plan, and his new position pays quite a bit less. I took on a weekend part time job (I've been working 7 days a week since October) to make up the difference. I hate it, and I'm exhausted, BUT 10 payments (all on time, yeah!) down and 26 to go, so I am beginning to feel like we can get through this.

Good luck, it's not all bad ;)

Ruggal

[car67]

Ruggal awesome smart moves I am cutting fat out of our bills as well so we can swing it
in terms of making sure our payments are timely....... I look forward to finishing this ordeal