What are the average or What are yours

[tadbitconfused]

What is your payment arrangement on bankruptcy. We are filing on the following.
These items being surrendered
300,000.00 arm mortgage 1st
45000.00 arm second (house is worth about 280,000.)
27000.00 chevy pick up worth about 16000.00

30,000.00 credit cards

Rent in our area goes anywhere from 1500-2000 per month for a 3 bd house.

We are over the median but I lost 20,000 per year in income.
Also if you stay current on your payment plan. Are you allowed to buy "anything" I don't mean on credit I mean what do you have to get okayed

[CATCHMEIFYOUCAN]

Also if you stay current on your payment plan. Are you allowed to buy "anything" I don't mean on credit I mean what do you have to get okayed

i would think once you are set on a payment plan you can pretty much spend your "extra money," on what you want ??? IF you have "extra money."

Catchmeifyoucan

[SinkingFast]

If you do go into a Ch 13 Payment Plan, you can only get Credit for 2 things. Maybe 1 in your case.

After you're in the Plan for a year, with on time payments, you may be able to get permission from the Trustee to buy a house. Same goes for a car.

That's why I said maybe only 1 thing in your case. From your other post, you'll already have 2 newer cars so the Trustee may not approve for you to buy another car during your Plan. Unless you maybe have a Lease that will expire during the Plan, or you're gonna trade one of yours in on another one.

For a house,.......... Your mortgage payments will have to be $200-$300/mo less than what you're gonna pay in rent. If the average rental is $2K/mo, you'll have to get a house payment of $1700-$1800/mo, PITI. Principal, Interest, Taxes, and Insurance. The extra $$$'s will be to allow for maintenance and upkeep of your home.

With a car,.......... That's gonna be tough to purchase another car and stay within the same payment range. Because of the BK, interest rates are gonna eat into what you can spend significantly. As a rough example for you,........ Pre BK you woulda qualified for a $18K loan. In Ch 13, the same payment will only allow you to borrow $12K due to the higher interest rates.

Beyond that, you're not gonna have much leeway to save up to buy anything bigger. Like a plasma TV, or furniture, or other big ticket items. Many folks that post here, scrimp from various areas of their budget to set aside a bit of money each month so they can have an "Emergency Fund". Money to take care of house repairs, car repairs, medical bills that come up.

[tadbitconfused]

understand but yet confused

I understand that we won't be able to buy things on credit. What happens if we start making more money again will the dismiss the bk. I don't understand all that. This is our second attorney we are visiting I am sure he will give me direction, however, I am confused like how long once we file do we have to be out of our house. Rentals in our town are few and far between. My husband says I worry to much. The previous attorney said we would pay about 600.00 per month for 5 years at 100% pay back. Thats why I asked doing that we would have breathing room and I would be able to say money (hopefully) Also I have been putting money back since we have decided to file dumb me I put it in the bank most of it will be used to retain the attorney does it look bad if I take it out of the savings account? I have quit using all credit cards and paying cash so that is why it is depleting and fast. I was just wondering if you have to get all expenditures approved. I didn't mean on Credit I don't want credit ever again. I just want to be able to survive.

[Granny]

If you do go into a Ch 13 Payment Plan, you can only get Credit for 2 things. Maybe 1 in your case.

Here in Texas, air conditioning is a necessity. We have two central air/heat pump units that are 25 years old. One is totally shot and only works as a heater in the winter and the other one is on it's last leg. When we lose it, will we be able to "finance" a new system. Based on our experience when we were renting a house, the decrease in the utility bills should be enough to offset the cost to finance the unit. Is this a good reason to incur more debt?

[lrprn]

All Ch 13 filers need the prior permission of their trustee to incur any additional debt after filing while their case is active. Unfortunately what kinds of legitimate debts are acceptable varies from trustee to trustee and district to district . You won't be able to take out a loan for a Caribbean cruise, but a loan to pay for a new roof or central air in a state with summers over 100 degrees may be approved. This is a good question to ask your lawyers - they are familiar with what's acceptable to your trustee and bk district. Good luck -sure hope the air holds out another year, Granny!

[aa06a47]

Here in Texas, air conditioning is a necessity. We have two central air/heat pump units that are 25 years old. One is totally shot and only works as a heater in the winter and the other one is on it's last leg. When we lose it, will we be able to "finance" a new system. Based on our experience when we were renting a house, the decrease in the utility bills should be enough to offset the cost to finance the unit. Is this a good reason to incur more debt?

The problem with requesting a loan permission from the trustee is how are you going to pay it back? Remember, all disposible income is already in the plan. It is my understanding also that the plan payments must not be affected. You might be able to use the decrease in utility bills, but from my own experience, my new system helped, but not much in reducing my bills.

If you a/c goes out, my first thought is to ask the trustee for an emergency refund or to suspend payments for awhile to be able to pay cash....if that don't work, then ask for the loan permission request.

You can also call your utility company and ask about financing new systems through them. They generally have a low interest rate and add the cost to your utility bill each month...might require you to purchase a certain system though. (Credit check might not be an issue as long as you have a good payment history with them??)

I know this seems shady, but I also know it is sometimes a necessity to do pre-bankruptcy planning. If you feel your going to need to file bk in the next 6 months, get those big expenses out of the way. I know I'm setting here worried if my roof will last another 4 years....guess it will have to.