Is it too late to chg my mind?

[tobee43]

What is DMI? I meant to ask that! Thanks. I paid attorney already i hope they dont want more!

DMI= Disposable Monthly Income

[dmc-2008]

They want more. Naturally, LOTS more. OMG. Its not too late and I am going with it. It will be a TIGHT 5 years, but I guess this is one way to learn to live within means. 2nd and 3rd stripped, CC debt gone. But somehow, I feel scared instead of relieved. At least I have a roof over my head and I don't have to go out and try to find something. At the end of the 5 years I will be better off. Not under water, no CC debt, and having learned at my age finally to live within my means. But I am so scared. Universe help me and my kid get thru this unscathed!!!! At least not too bloody!

[LadyInTheRed]

I bet the fees are at least twice what the Chap 7 fees were. My attorneys fees were the best money I've ever spent! So far, I haven't heard of anyone paying more than me for a Chap 13. It's still a bargain compared to the amount of debt that will be discharged.

There really is nothing to be afraid of. Just make sure you understand the plan your attorney prepares and ask any questions you need to ask. When you go to sign the petition, if you are shocked by the plan payment, take the time to make sure you are really doing the right thing and that you can handle that payment. You are right that a Chap 13 is a great way to learn to live within your means. I just sent in payment 28 of 60. There have been some bumps along the way, but overall, things are getting better all the time. I'm almost half way there and the time has sped by.

[dmc-2008]

Congrats Lady almost half way!!! I feel like i have so far to go but will be in such better shape in 5 years! Such a long time but I have to look at it as the only way to save this investment and our home! I dont want to give up even if it is too small, you cant beat the neighborhood and the convenience. I have so many questions!!

[SMinGA2]

From LITR: Just make sure you understand the plan your attorney prepares and ask any questions you need to ask.

Best quote ever. This is the most important detail of a successful ch. 13. That you understand what you're paying, what the plan is paying, and why.

[dmc-2008]

I am already confused! He said they strip the second and third. So i assume that not getting paid? Then he said his fees get paid first thru trustie. Then who gets the balance? I assume ccards and that the trustie will go over all that? Its about 400.00 a month does that sound normal and when do you see it in writing? Also need to get place appraised first.

[LadyInTheRed]

I am already confused! He said they strip the second and third. So i assume that not getting paid? Then he said his fees get paid first thru trustie. Then who gets the balance? I assume ccards and that the trustie will go over all that? Its about 400.00 a month does that sound normal and when do you see it in writing? Also need to get place appraised first.

We can't tell whether $400 is normal. There really is no such thing as normal when it comes to a plan payment. No plan is the same. All of your disposible income (gross income, less required deductions and necessary and reasonable living exepnes), must go to your plan. The payment must be enough so that over the life of your plan, it can pay all of your attorney fees included in the plan, arrears on secured debt (but not your 2nd and 3rd mortgages if they are being stripped) and the trustee fees. If you have any non exempt assets, your unsecured creditors will also have to receive at least the value of your non exempt assets. If you can't show that you have enough disposible income to cover all of that, your plan will be rejected as not being feasible.

When you strip the 2nd and 3rd lien, they will be treated as unsecured debts, just like your credit cards. Unsecured creditors are the last to get paid. Your monthly payment will go to pay attorney fees, trustee fees, and any mortgage arrears on your first mortgage that exist on your date of filing. It might also include the regular monthly payment on your first mortgage, your car payment, if any, and any other ongoing secured debt payments you have. Whatever is left over after making those payments gets divided among your creditors who file valid unsecured claims. (Note that my list is not a complete list of what could be included in a plan payment).

Ask your attorney what is covered in your plan payment and what you will have to pay directly. It is very important you understand that. The plan will be an attachement to the petition that you will sign. Review it carefully before you sign it and ask about anything you don't understand. Don't be rushed into signing.

I assume ccards and that the trustie will go over all that?

Don't expect the trustee to go over anything with you. That is your attorney's job.

[dmc-2008]

Thank you so much Lady! I am waiting for an appraisal referral from my attorney and today when I asked about it he said, we will do it AFTER I file. I thought that was kind of weird. I mean. The market value to what I own on the first is pretty close. What if the appraisal is right on or very close, couldn't that kill my plan?

Again, thank you so much. I appreciate your replies!!!

DMC