Cutting back...

[jhy12]

Question for you all that have been through this...we currently have our cable/internet listed as 170/month. CRAZY! thinking about moving to the hulu, netflix way and that would bring our total bill to about 100 with internet. do we do that now? or wait until after confirmed? what is your experience? I'm worried that if we cut now (or even later) the trustee may see that is "working the system" and dismiss us because we saved ourselves $60/month (which we plan to put into savings for the what-ifs). How else do you cut back? How does this work without "working the system"? We will be officially filing next week...

[tissa]

I would do this after you are confirmed. Mainly because usually they don't check on this type of thing part way through a chapter 13 and unless the Trustee objects to your high cable bill in the beginning which he might it's better to do it after because now you have $70 a month to put into savings for a rainy day. Since I am already on a 100% plan it didn't really matter much the trustee doesn't have any reason to object cause the creditor's are already getting 100%. But I still reduced our cell phone bills and cable bill after confirmation to save a little more.

Honestly the biggest problem with Chapter 13 is they don't account for fluctuating expenses or unexpected expenses so you are better off saving money even if it's only a small amount every month. For the first time in ages I have money in the bank and I'm paying my chapter 13 payment and all other bills on time it's a good feeling.

[switch625]

I agree with Tissa. When you file your petition, list the living expenses that you want to live on as if you are not filing BK. If your cable bill is $250 pre-petition, then list it as such. Don't propose living the next three to five years in a manner you think will impress the Trustee and get your case confirmed. Let the Trustee object.

[LadyInTheRed]

I agree with Tissa and switch625.

[markinva]

I'm 4 1/2 years into my plan. It is critical that you budget for savings for unforseen expenses. Another thing to look closely at, post-confirmation, is your state and federal tax withholding situation. You may find that you have room to adjust your tax withholdings. You don't want to owe income taxes nor do you want to get a refund that, technically, the trustee can take.

[bobcat216]

Markinva that is most excellent advice. My trustee did not ask form my tax return nor wanted my refund. I do not know why but they did not. but if they did i would have altered my withholding post confirmation.

[lukesky]

Markinva that is most excellent advice. My trustee did not ask form my tax return nor wanted my refund. I do not know why but they did not. but if they did i would have altered my withholding post confirmation.

I was told by my attorney that I will be able to keep my tax refund. I hope he was telling me the truth. I filed in September of this year and my payment plan is not confirmed as yet. He told me because of the county I live in I will not have to give it to the truste.. I asked him about 8 times and he always told me the same answer. He better be right.

[LadyInTheRed]

Whether the trustee wants your refund varies by trustee and is also based on how your plan is drafted. If your confirmed plan requires that you turn over your refund, you can't just change our withholding. Your plan payment is based on the withholding reported on your petition. If you get a refund every year and it is not added back to your income to determine your disposible income and your plan payment, then the trustee very well may want your refunds. If you reduce your withholding, you aren't reducing your disposible income, you are just receiving the income with each paycheck instead of when you receive your tax refund. Reducing your withholding does not necessarily mean you get to keep that extra income you receive in your paycheck. You might get a letter from the trustee asking you to write a check for the increase.

When in Chap 13, don't change your withholding without first consulting with your attorney.