100% repayment

[Carrie C]

If my chapter 13 plan ends up being a 100% repayment does it really matter how much I make or what I do with my money? I understand I can't develope any more debt during the five years. My vehicles and mortgage are auto deducted and will not have to go to the trustee.

My husband has a decent salary and I work on commission which sometimes can be good (sometimes not....)

Although there will be tough months won't the 100% repayment plan be better so I don't have to worry about the trustee's eagle eye??

[treehugger1]

Technically, all 'disposable" income must go to the plan. "Does it make any difference what you do with your money?" I would say you want to make sure all money not going to the plan should be accounted for as an expense. A good attorney will certainly help you through this. I'm also looking at a 100% plan, initially. In my district, it does appear that the trustee has little problem with 90 - 100% payback plans. What I do need to show is that under my current situation, I really have no other option (otherwise, why would I need to petition for 13). Since my current monthly debts will soon outstrip my income after accountnig for living costs, I will be "bankrupt." The reason for the 100% plan is not because I can't afford the principle payments, but the reason is due to out-of-sight fees and increasing interest. My unsecured debt interest is doing me in. The trustee will clearly see my predicament, and I see very few problems with my 13. And, I'm someone who questions and worries about everything. But, why would a trustee find an issue with a plan that is attempting to pay everyone? Others may have more to add here.

[treehugger1]

I want to add that when I went to speak with debt counselors for a pre-screening, they said they could see no other way out for me other than bankruptcy. I was amused considering that I thought the required debt counseling under the new law was to first help me find another way. I had to pay $50.00 to hear something I already knew. Chuckle.

[Carrie C]

I also will never get out of debt unless I file 13. Our unsecured debt is 100k, yeikes...I am pulling out whatever possible to stay current but that is coming to an end. My working on commission in our hard hit real estate market has taken its toll. We are struggling yet planning to go into a hard five years. buying a cheaper home, setting up vehicles, etc.

I am sure our attorney (not sure if he will be the one yet but meet with him twice) will help us with applying our income to the appropriate expenses for repayment.

Although it will be tuff I was starting to figure out that it may be a relief to do 100% in its own way.

Our season in Florida will be kicking in soon and I hope to make a small extra chunk of money out of it. If I am already set in 13 at 100% and I make some extra sales how would that affect my BR. Should not I was thinking because of being at a 100% payback??? Am I wrong??

[CAB_44]

Hey Carrie~
We too are looking at a 100% payback~
It is my understanding that if you're paying 100% back and you make a little extra (I too have ups and downs in income, self employed but do not "own" the business) they won't take it...it's just a little extra that you get to keep....paying a 5 yr. payback, why would the trustee care~
We had to do the same thing~ we were paying 2300.00+ monthly, but was not getting anywhere on 96K debt. so chap 13 was the only way out~
Extra sales/extra income should not affect your BK plan...unless of course you get the trustee from hell....it's possible...hahahaha
At least that's what I understand......if anyone else knows different...by all means~ Speak up!!!!
We stopped paying on our CC about 3 months ago....am trying to get prepared for the next 5 yrs. stocking up..... we probably will file in Dec.~
unless we have law suits~ nothing as of yet....it just sucks~ but at least in 5yrs, we will be out of DEBT!!! Only a mortgage payment~ both cars will be payed off, and they'll still be fairly good shape..hopefully!
I have learned LOTS from this whole ordeal!!
Good luck to you!!
CAB

[treehugger1]

Hello Carrie and Cab,

I feel much better knowing there are several more out there paying 100%. I don't own my own home and hold $150K+ of usecured loans, much of which is student loans of my own and childrens. The other is due to my own stupidity and financial recklessness. I keep thinking that the trustee will look at my debt and income and think I should figure it out on my own, but the attorney I'm speaking with says the trustee won't give a d**n about how I got in this situation. I can afford a 100% payback plan until my paycheck becomes smaller, and if I have to I can ask to have the plan modified later. It appears that I'll be joining the December club with Cab. I have no judgements, garnishments, etc. and it is highly unlikely anyone will get a court order in the next six weeks and have time to process a wage garnishment. In fact, as we head into the holidays (Thanksgiving and Christmas) I believe my bankruptcy will be very straight forward and clean. No garnishments to put an additional load on my attorney. I do have some potentially nasty creditors out there, but I am learning to deal with them. I could potentially work with the majority of creditors, but I will get nowhere in terms of financial relief. Keep posting to this board, and perhaps we cna help each other survive the next five years! This board has already been of great service to me in terms of getting my mental act together. I now realize that I should have done this several years ago, but you probably know how that goes; fear, "stigma," etc. When you do get information about the process of your petition, keep posting here, Carrie. The information record on this board is extraordinary. I have learned to ask some very good questions of legal counsel. Cheers!

[CAB_44]

Hello Carrie and Cab,

I feel much better knowing there are several more out there paying 100%. I don't own my own home and hold $150K+ of usecured loans, much of which is student loans of my own and childrens. The other is due to my own stupidity and financial recklessness. I keep thinking that the trustee will look at my debt and income and think I should figure it out on my own, but the attorney I'm speaking with says the trustee won't give a d**n about how I got in this situation. I can afford a 100% payback plan until my paycheck becomes smaller, and if I have to I can ask to have the plan modified later. It appears that I'll be joining the December club with Cab. I have no judgements, garnishments, etc. and it is highly unlikely anyone will get a court order in the next six weeks and have time to process a wage garnishment. In fact, as we head into the holidays (Thanksgiving and Christmas) I believe my bankruptcy will be very straight forward and clean. No garnishments to put an additional load on my attorney. I do have some potentially nasty creditors out there, but I am learning to deal with them. I could potentially work with the majority of creditors, but I will get nowhere in terms of financial relief. Keep posting to this board, and perhaps we cna help each other survive the next five years! This board has already been of great service to me in terms of getting my mental act together. I now realize that I should have done this several years ago, but you probably know how that goes; fear, "stigma," etc. When you do get information about the process of your petition, keep posting here, Carrie. The information record on this board is extraordinary. I have learned to ask some very good questions of legal counsel. Cheers!

Hi Treehugger~
Yes, your situation sounds a lot like mine~
My husband is and has worked two jobs for over five yrs now because we thought we could get this debt paid for on our own....however, it just didn't come to that~ every month we sunk every bit of our "so called extra" income to these CC's, and when something happened....I had to resort using the CC all over again to cover the emergency....that's how I know that Chapter 13's aren't really going to work either...because that's basically what we have been doing for the last decade or more...., but at least the interest will stop. That's really the only UP side to this whole mess for us~
I was shocked that the attorney told us our payments would be 2300. x 60, because the first attorney that I spoke with said "nah~you probably won't pay more than 36K back" ....we will pay 96K + ...one car is included in the BK so that makes it about 22K more, and then of course the attorneys fees and the trustee fees.....just makes you want to barf~ but oh well, as I said...it will be paid off FOR SURE!!! We will only have our mortgage left when it all is said and done!! WOO-HOO~
My husband ~ I feel~ should have quit the second job, but he loves what he does, so he said he thought he could stick it out another 5 yrs. Our attorney said, "well, if you can't then let me know and we'll ammend the payment schedule~ but we figure it all comes out the same whether he quits the job or not...yeah, he would make less, but we would still have to pay a high amount equal in essence~ so we're just going to tough it out~
Yeah~ those Creditors can be nasty "eh?! They call about 20 times a day here~ but I don't dare answer because I don't want them to know my decision until I am filed ... can't wait for that day!!!!
Absolutely~ I am comforted by the fact that there are those in the same 100% club...that sounds kind of crude...LOL... but hey, it's what gets you through, others in the same row boat as you!!
Since Dec. has 3 paydays for us, that's when we felt it would be the best time for us to file~ we can stock up now, and get some things done around the house that have needed it, before this all kicks in ....hope to have some rat hole money~ who knows~ it never seems to last long!!!!!
Again~ I am glad to have found "similar" friends in this forum.....but EVERYONE here is great!!! I have truly considered this a blessing to have found this space!!!!!!!
Let's all try to keep our chins up!!
CAB

[treehugger1]

By my figures, I'm looking at $2650 per month, but my attorney swears it will be less than $2500. He also stated, after looking at my creditors, that there will be many who will not file a claim. I don't think he wants to say "who," but he seems very convinced. I asked him about the disposable income that would be "saved," and he stated, "The petition is based on the circumstances when you file. It's not your fault if creditors don't claim what is coming to them." I guess I'll find out in a few months if he knows what he is talking about. Cheers

[CAB_44]

Hi TH~
Yes, my attorney says the same about the creditors~
I'm hoping some will skip out, but you know, I never seem to get that lucky!! LOL
Ours is trying to "refigure" our scedules, but she says it could be anywhere from 1900.00 - 2300.00 at first she said 2300.00, but it will most likely be somewhere in between......
Who knows~ oh well...Dec. will come soon enough~ right?!

[Carrie C]

Reading through our comments is kind of scary to think how high our repayment will really be for five years! One bad month and oh boy....it is quite a large chunk of change. We need to keep our eyes on the prize of financial freedom and that new start. And for me certainly making better choices.

I have not missed any cc payments yet but have decided that the filing is going to be for sure, twice to an attorney, getting out of my lease into a purchase, just preparing and close to done. Even though I won't be too deliquent I don't want to wait to file. The middle of November is the plan. I need to start getting it over with. I read a comment in the forum that the length was horrible. Up to one year or more to contemplate and actually file, and five years to follow including paper work and down time. I just want to start the five years.

I am sure I will be searching for and asking questions in the forum during the upcoming process. If I can share any knowledge from the experience I certainly will.

Look forward to the encouragement from this site! I am so grateful for that!

[aa06a47]

The trustee might care about "extra" income in order to get you through the bk sooner. If your in a 100% plan, they will not ask you for more than the "POT" amount. If you could pay it off in a year it wouldn't matter to the trustee. If your a 100% plan, you can buy out at anytime. If your a 10-15% plan like mine, I'm in for 5 years unless they allow me to pay the pot in 3 years.