top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Update on our pre filing meeting with attorney(TX)

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

    Update on our pre filing meeting with attorney(TX)

    We had our pre-filing meeting with our attorney yesterday, so just wanted to provide some updates. (Not that anyone is following... but maybe I’ll look back on these posts later!)

    It’s looking like the trustee will pay the car and mortgage, and then our payment will be $1200 or so on top of that. Our attorney recommended we estimate our mortgage as $3200 even though it’s currently $3455, because we had an escrow shortage last year and once it’s adjusted this year it could be considerably lower. He said if we go in saying it’s $3455 and it’s lower than that, the trustee still gets the same overall payment and then disburses that to our debt, so it’s better to try and be realistic about the future payment.

    Some parts of the meeting were pretty much what I expected, the overall payment to the trustee is estimated at $5300 right now and I was expecting $5700. We’ll see what it actually ends up being. A lot of our budget expenses have already had to be slashed so that we are meeting some minimum percentage paid back of 5.8%? Does anyone know anything about that?

    One awesome surprise is that my two student loans WILL be paid during this and one of them may be able to be discharged at the end because it’s not technically a student loan but a private loan! That one is co-signed with my dad and our attorney said there’s no way to know if they’ll mark it on my dad’s credit report, so here’s hoping they don’t... I mean if it’s discharged I imagine it’s gonna have some type of mark!

    One bad surprise is my husband is an authorized user on his parent’s Kohl’s card and we need to remove him or risk that Capital One freezes their whole card account. Of course our families don’t know (yet).

    The parent plus loan payment that is entirely in my dad’s name will just have to be budgeted with what we end up having for expenses after all this.

    We love our attorney and have such a good feeling about him. He didn’t shame us or make us feel awkward at any point and he really just seemed invested in getting us the best deal possible. There were even some things he warned us the trustee could and would question, but said that legally we have the documentation to support it.

    We are preparing ourselves for a very different lifestyle but we will have some savings at least. COVID has us mostly home bound anyway (although we major overspend on groceries). But I’m told Texas is one of the better states to file bankruptcy in, so there’s that too. There’s a lot I can’t stand about my red state but I’m ok with the bankruptcy law ha!

    #2
    In my district, the minimum payback to unsecured is zero. But if you have non-exempt property, you will have to effectively buy it back from the unsecured creditors. Maybe that's where the 5.8% is from. But ask your attorney about that since I don't know for sure. If it's possible to surrender the non-exempt property, I would do that to put less pressure on your budget. All ch13 budgets are real tight at the beginning so it's a good idea to work it as much as possible to give yourself a small cushion. A budget that is too tight will make it very challenging to survive the 60 months.

    Comment


    • imtryingtho
      imtryingtho commented
      Editing a comment
      Could it be that we are keeping some cash?

    #3
    My husband and I were not aware of so many things when we went into Chapter 13 except we knew it was our only option at that point. Our payments are in the same ballpark as yours for our first 2.5 years. Now we no longer have the house payment so we have a little relief, but it's still a tight budget. Covid cut out my second job, husband gets some overtime, but it's still less than my second job paid and as of the New Year he won't have overtime. At least we have been able to maintain our budget through the craziness, but it's really and truly a new budget and a new way of living. Going to cash only budget has been something else!
    I am not an expert. I just share my experiences in the Wonderful Wacky World of Chapter 13! Filed 3-30-18 Confirmed 7-11-18 Discharged 6-8-22

    Comment


      #4
      Originally posted by Carmella View Post
      My husband and I were not aware of so many things when we went into Chapter 13 except we knew it was our only option at that point. Our payments are in the same ballpark as yours for our first 2.5 years. Now we no longer have the house payment so we have a little relief, but it's still a tight budget. Covid cut out my second job, husband gets some overtime, but it's still less than my second job paid and as of the New Year he won't have overtime. At least we have been able to maintain our budget through the craziness, but it's really and truly a new budget and a new way of living. Going to cash only budget has been something else!
      Luckily we haven’t been using credit for a while so we got over that adjustment phase but we are still majorly overspending. At the end of the five years my car will be paid off, so that will be nice. I’m hoping to leave my husband’s stock sitting so when we get out of this we have almost $2000 more a month in our budget and some savings in the form of the stocks. But who knows how realistic that will be. Emergencies happen as we all know! My husband got overtime last year and we were stressed at the idea of chapter 13 using his overtime paychecks. It would basically lock him into working himself to death during chapter 13. Thankfully they converted him to salary in March. Which was also the nail in the coffin of any chance of us paying this all off ourselves.

      Comment

      bottom Ad Widget

      Collapse
      Working...
      X