What happens if I can't make my first payment

[BrokeCND]

I'm filing a Chapter 13 which my lawyer was supposed to have filed in on 4/30. I told him several times that I could not make the payment and my house note (due on the 1st) in the same check. On top of that, I'm going on vacation May 12 - 21 (which I'm sure the trustee will love to hear, but it was paid for months ago and is non-refundable), and I have to take 4 days leave without pay, further reducing my paycheck. So what happens if that first payment isn't made on time?

Thanks.

[justbroke]

You had better make the first payment. This is the most important payment in the life of the Chapter 13. You really need to sit down with your attorney. If you are paying your house outside the plan, then that means you are current on your home payment. You may need to think about how to use any grace period and make the house payment differently (10-15 days using the grace period).

You already have some major issues with taking time off and losing pay thus making it even more difficult to maintain your Chapter 13. I know you can sense that this is a very bad way to start a Chapter 13. Paying on time is the most important thing and I think the vacation is causing more trouble than it may be worth. You're probably still going to spend money during the vacation, right?

You have many things to think about. Personally, I would not take the vacation and eat the loss, especially if it meant missing income. A Chapter 13 budget is tight and is not something you want to purposefully render impossible to manage.

[Dt3813]

I wholeheartedly agree with justbroke........Maybe someone can go in your shoes and actually give you a couple of bucks for the trip. I'm sure that is not what you want to hear.....

[dmc-2008]

You are gonna have a long 3 or 5 years ahead of you! Good luck,

[Pandora]

Agree with the others wholeheartedly. Sounds to me like priorities are not in order; Ch 13 isn't like paying a bill, there is no "grace period" when it comes to paying the trustee. if you haven't learned to prioritize and budget you will never make it through your plan.

[LadyInTheRed]

I told him several times that I could not make the payment and my house note (due on the 1st) in the same check.

This should not be a problem. If your BK was filed on April 30, your first plan payment should be due on either May 31 or June 1st. So, make your first plan payment on May 15th and continue to make plan payments on the 15th of each month so that you can pay your mortgage on the 1st. If your vacation makes you unable to do that, then you need to cancel your vacation or cut it short.

[BrokeCND]

Thank you everyone. You have convinced me of the importance of making that payment. I'm still taking the vacation however - I'd lose $4k otherwise. But I'll make it work!

[ABC]

No vacation is 100% pre paid. You need to think about that.

[dmc-2008]

I had a trip booked and paid for to cabo thru travel zoo where they say you never get your money back, I got every single cent! I know if I would have gone I would have spent too much anyway!

[Drazil65]

Hi, you have received some good advice for making that first payment and as far as the vacation goes, you really cannot afford it. It is what it is, try to get someone to go in your place if you can for say half the price. Give someone a deal so your losses are not as great, the extra money you will need for this trip will completely throw you off budget. I am sure you want this trip but it just is not in the plan right now no matter how you look at it, be realistic, responsible and honest with yourself. Good Luck!

[switch625]

Could you and your attorney have waited until after the vacation was completed to file the petition?

[LadyInTheRed]

Could you and your attorney have waited until after the vacation was completed to file the petition?

I thought about that too. Too late now. I wonder if the attorney even knows about the vacation.

[BrokeCND]

Of course my attorney knows. I'm not trying to be fraudulent. But I wanted to get it filed as quickly as possible.

[Sammie]

BrokeCND, everyone on this Forum have your best interests. Bankruptcy, especially 13 is not an easy journey. Unexpected things occur and you have to be prepared. Your unsecured creditors are just waiting for you to default. You have received very good advice here, we have all been through the process. Very few people actually finish Ch. 13. We actually were completed 9 mos. early this past November. Christmas, vacations and eating out were not options for us during the process. The only payment that should be a top priority now aside from your Mortgage is getting that payment to the Trustee on time. We made sure it was a week early every month.

If you haven't done so as yet, sit down and make out a monthly budget and stick to it. This is the only way your Bk. will be successful for you, that and keeping your priorities straight.

[DeepBreaths]

Totally agree with everyone. Make those payments on time every month. It's hard but it's supposed to be. Budget, budget, budget. We are 38% (24 payments) in and while it's been hard it hasn't been impossible. You learn that things that you used to do regularly (eating out, movies, etc.) are special and rare times. But that's what makes them more special. We've gone on one 3 day vacation. We visited friends and stayed at their house and only sent out one time (for ice cream) and I can tell you we truly enjoyed ourselves and made memories more than if we went to some hotel or expensive vacation. I found that it's fun to search recipes and make them. It's fun to use coupons and get the best deal. I enjoy hearing my friends tell me about how they saved much more than how much they paid for things. Honestly it feels like we just started our BK and these 2 years have gone by rather quickly. Good luck.