Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

New to this...have some 13 Questions.

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • New to this...have some 13 Questions.

    My wife and I are considering Chapter 13. We both do well, income of 120K per year, but are overextended in CC debt, and house in under water. 1st with Chase 191K, 2nd with Green Tree, 24k. House is worth 160K maybe now...stinks! We also have two vehicles with payments, at higher interest loans.

    So a few questions, I hear we can have the 2nd mortgage stripped, what happens with the cars? Can we get a reduced rate on the notes? also I have read some horror stories, about trusties not letting people buy Christmas Gifts??? so how is the spending monitored? Does the payment to the trustee have to come out of a paycheck?

    Just a few questions...


    any help is appreciated

  • #2
    Chapter 13 is no picnic, but it is not the horror show that some people think it is. You will get a lot of good advice from the folks on this forum, but you will need to verify it with a bankruptcy attorney in Illinois. The fact is that some BK districts are tougher than others, not to mention the Chapter 13 trustees being all over the place with their own demands.

    Ongoing spending is not monitored during the length of a Chapter 13 plan. In some (but not all) cases, trustees keep track of debtor's incomes by requiring the submission of income tax returns, so that significant increases in income can be noted. This could trigger a motion to modify the confirmed Chapter 13 plan, usually to secure more disposable income for creditors.

    Lien-stripping is most always to the advantage of the debtor, and never to the advantage of the 2nd mortgage holder. The creditor will get something out of the deal, but at the end of the Chapter 13, they cannot take any action to recover the deficiency. Auto loans are treated according to a number of factors, so no general advice can be offered.

    You should have plenty of questions for a BK attorney after the forum picks up on your posting.

    Comment


    • #3
      We are 4 months into our 13 and have more "extra" money now than in amny many years. Our monthly payment does come out of the paycheck biweekly. Our 13 payment is cheaper than paying our 2 autos and the 2nd mtg was. Our autos were included in the plan and the interest rate went down to 5.25%. But, we have had them over 4 years, neither was recently bought.

      We had our 2nd mortgage stripped, judge signed it at confirmation. Our 2nd was also with Green Tree and they did not fight it at all. We were underwater about 20-30K on the first. I think that is why they did not contest at all. It was not even close to haveing equity. Our spending is not monitered, we had a very nice Christmas that we paid cash for!! It feels so good not to be worried about all our debt payments and we actually have a very good budget in place that allows for stuff we had to skimp on for years. We even have a good start on an emergency fund.

      We found a good attorney that specializes in 13's and knows what the Trustees and judges here will allow. We set up a good budget that was not too tight for us and had no issues getting confirmed. Now to hope it all keeps going smoothly. But I only regret not filing sooner. The peace we have now is priceless.

      Comment


      • #4
        8forme, where are you from?

        Comment


        • #5
          In the South.

          Comment


          • #6
            I was considering BK 13 a few years ago, but I never did it. Now I am worse off then ever! I have not one extra penny in case of an emergency! I hope nobody gets sick or breaks!

            I am seriously considering a Chap 13 now, but I too am afraid of what it will be like for 5 years!!!! My attorney that I spoke with a few years ago, said I can keep the condo, have the 2nd and 3rd stripped and end up better off in the end. But FIVE years?

            How doe it work? You send a payment to a trustee for the debt repayment that is set up? Do they monitor your spending on a monthly basis? Can you get your kids anything as a treat once in awhile or are you strapped worse then you are now?

            Do you have any cards for an emergency and for getting plane tickets? My elderly mom lives in another state?

            Are trustees awful people?
            Thanks so much!
            Discharge date: October 2017 (will it ever get here?)

            Comment


            • #7
              Chapter 13 isn't really so bad. Think of it this way, it provides a PLAN to get out of your debt. I'm in the hole about 500K between bad business debt and personal debt. My payments are 990/mo over five years, but in the end, i'll pay back 11 cents on the dollar for all of the unsecured debt I owe, and then it's done! Doesn't sound so bad, right? There's a light at the end of the tunnel!

              I was forced into BK because of a lawsuit. My personal finances were actually OK, but between my car pmt and credit card minimums, i was paying 800/mo. I could easily pay more than the minimums, so a payment of 990 might sound bad, but it's doable for me!

              We're surrendering our home too, so I've been saving my butt off since filing by not paying a mortgage payment. This savings is going to get me through the next five years of emergencies since credit cards aren't an option. I'm hoping the bank moves slow to foreclose, and our goal is to save up about 10K before we need to move.

              Anyways, I know my story is unique and not everyone is able to save like this... but the point is, that chapter 13 provides a solution to getting out of your debt. They don't monitor your spending... as long as you send your payment on time and don't acquire more debt, they pretty much leave you alone. I still buy my kids toys, We go out to eat occasionally, and I have a plan to save money through an FSA plan at my work (daycare Flex spending account), and cash it all in at the end of the year to use for Christmas. Chapter 13 forces you to plan ahead for those things! Spending it as fast as it comes in is no longer an option.

              Hope this helps!
              10/27/11 - Filed Ch13 ------ 2/27/12 - Conversion to Non-Consumer Ch7 ----6/11/12 - Discharged!

              Comment


              • #8
                I am in the same predicament as the OP. We make about $150,000 per year, with 2 car payments($1350) and about $80,000 in CC debt. House severely underwater water with 2 mortgages. We are barely making minimum payments. behind on 3 cards with BOA due to being unemployed for a couple of months. Does anyone know if you can just decide to file chapter 13 because you feel it is better than making minimum payments. Do you have to be behind? Or incapable of making minimum payments? I have not spoken with an attorney, but would like to file simply because i have no strategy for getting out of debt. i think we make enough money to make all payments, i am just frustrated b/c i think with minimum payments i will still owe out a lot after 5 years and still will not be able to save for emergency or 401k. can they reject you for making too much money? like i said, i can pay, i just can not make a significant dent. Also i really would like to strip the 2nd mortgage. I can't see a reason to spend 10 more years paying on it and the house is underwater. my credit score is already in the tank. i have nothing to lose there.

                Comment


                • #9
                  I wish I had answers, I too am looking for some.

                  So are you saying they close every single CC you have, including debit with Visa attached, or Department Stores? Gone?
                  Discharge date: October 2017 (will it ever get here?)

                  Comment


                  • #10
                    Every bk case is different, but yes you can expect to lose all of your cc and you are not allowed to take on any new debt without the trustees approval. Yes you should be able to retain your debit card with visa or mc attached since it is really a debit card and not a credit card, but it also depends on the bank and if you have any other debt with that bank. Read up on this forum as there is a lot of good information here and get several free consults with several attorneys.

                    I am starting year 3 of 5 years. I hear from the trustee once a year with the annual statement he sends out. He doesn't care what I buy as long as I make my monthly payments on time and don't take on any new debt. The key is having a good budget and saving money every month. I pay cash or use my debit card for all my purchases, things are a lot less stressful and I know in year 3 years I will be debt free.
                    Discharged 5/2015

                    Comment


                    • #11
                      That is wonderful!
                      I want to invite you to my brand new blog:

                      http://joyofdebt.wordpress.com/

                      I just created it today!
                      It will be a journey of my struggle and solution to my personal debt crisis.
                      I have not decided which route to take, but it would be wonderful if you can come and join me!
                      See you there,
                      DebtGirl
                      Discharge date: October 2017 (will it ever get here?)

                      Comment


                      • #12
                        Originally posted by Tonfee View Post
                        I am in the same predicament as the OP. We make about $150,000 per year, with 2 car payments($1350) and about $80,000 in CC debt. House severely underwater water with 2 mortgages. We are barely making minimum payments. behind on 3 cards with BOA due to being unemployed for a couple of months. Does anyone know if you can just decide to file chapter 13 because you feel it is better than making minimum payments. Do you have to be behind? Or incapable of making minimum payments? I have not spoken with an attorney, but would like to file simply because i have no strategy for getting out of debt. i think we make enough money to make all payments, i am just frustrated b/c i think with minimum payments i will still owe out a lot after 5 years and still will not be able to save for emergency or 401k. can they reject you for making too much money? like i said, i can pay, i just can not make a significant dent. Also i really would like to strip the 2nd mortgage. I can't see a reason to spend 10 more years paying on it and the house is underwater. my credit score is already in the tank. i have nothing to lose there.
                        Tonfee,

                        Ch13 provides some excellent tools to help you get rid of debt. Lein stripping is one of them. Especially if you love your house and want to keep it. Without the 2nd mortgage, how underwater are you? I owed 135 on my first and 66K on my 2nd. My house is worth 80K. Still way below the first mortgage. thats why I surrendered it...

                        I think of it this way, in 5 years going at the rate you are, where will you be? If you calculate how far you can pay down your debt on your own, it might open your eyes to the possibility that a Chapter 13 is a good solution. You dont have to be behind or incapable of making payments, but if your minimum payments make it extremely difficult to pay anything else, than Ch13 should provide some breathing room. I hear trustees can get finicky about saving for a 401K, when that money could be paid towards your creditors, but your age or employer contribution may help with that (each trustee is different).
                        10/27/11 - Filed Ch13 ------ 2/27/12 - Conversion to Non-Consumer Ch7 ----6/11/12 - Discharged!

                        Comment


                        • #13
                          We are now 9 months into our Chap 13 plan. We kept our home (owed $210k worth 190k) and did a lien strip for the 2nd which was $48k through Greentree. We pay for a car inside the plan and own 2 other vehicles outright - older models with high miles. I pay the Trustee directly each month via money order instead of payroll deduct. I work in a small company and it would have affected my job if my employer knew about the BK. So far for us it has been good. No more phone calls and we actually have a small savings weve been able to scrape together ( $2800 and counting) and i'm not thrilled about 5 years but I wouldnt have gotten myself out of debt in 50 years at the rate we were going.
                          This is the most difficult embarrassing thing in the world for us to go through. We have several reasons why we accumulated 90k in CC debt including our own irresponsiblity.
                          We have rented cars and been on flights since filing and we just use our Debit card. It is nice to be able to save money now though. For the first time ever we are living on a budget and truly within our means.
                          We have a long road to go but I am looking forward to finishing this thing out and having a nice savings built up ( I hope ) and being debt free in a litle over 4 years!

                          Comment


                          • #14
                            Deepinit
                            Looks like we have similar situations. I owe about 240,000 and worth 220,000 not counting 2nd at 55,000 and 3rd at 8000. Lots of school loan and unsecured debt as well. Those r rough numbers! Go to joyofdebt.wordpress for story and follow and let's support each other. I have not filed yet but think it will be only way to go. I only have 10 or so working years in me do there is that added stress! Wow this sucks!!!! Hope to get to know uitenhage there and learn this.
                            Discharge date: October 2017 (will it ever get here?)

                            Comment


                            • #15
                              We were behind 3 months are our mortgage (no second), had a car payment with high interest (which in now reduced to 5 %), back taxes, student loans, payday loans, just about everything you can imagine. We were sinking more and more each month. Chap 13 was the best thing we have ever done. Even though we are in a 100 percent payoff, we now have money in savings, planning a vacation this summer, have money for upgrades on our home, etc. Things we haven't been able to do and probably wouldn't have been able to do had we not filed. Having the debt collectors not calling constantly is an amazing feeling. We pay for things with cash and are able to use our debit card for reservations and things like that. We send a cashier's check or money order for our payment each month. Just make sure that when you're doing your paperwork that you do not underestimate your expenses! Our attorney actually said the majority of our numbers seemed to low, added expenses I would've never thought of, and the trustee never blinked an eye. Best of luck to you and your family. : )

                              Comment

                              Unconfigured Ad Widget

                              Collapse
                              Working...
                              X