I Finally Filed!

[MajorMike]

Hey Folks,
We filed Thursday and our lawyer said our payment will be $825.00 which is a huge relief since we were paying almost $2000 and that was just car and unsecureds. We just became late on some cards and gave 6 of them our lawyers name and number. He will have the case number by Tuesday. This is such a huge relief. He said we'll get notified of our 341 meeting next week and We'll be confirmed right after it. He said we will only be paying back 26% if 70% filed claims.

[CindyLou]

That great that you filed!! do you mean 26,000 out of 77,000 claims?? or 26% of 70,000 claims? What is you dollar amout toward your sercureds? I am very happy that are on the road to get this done!! Remember your unsercured percentages could go up if some don't file claims, but it won't affect your payment any unless it puts you at 100% in which case it could possible go down. We'll all keep our fingers crossed!!!!!

Nevermind..I get it he is estimatding that if 70% file claims then you pay back 26%. Ok that makes sense. but because you are not 100 your payment won't change even if your percentage changed so even if your are confirmed then you creditors just get the same amount to be dispursed between them. Keep us posted. I 'll be very much wanting to hear.
Cindy

[MajorMike]

Thank you Cindylynn,
Yes you are correct, I meant if 70% filed claims, we'd be at 26% payback. The payment amount is the amount we were so concerned with. You're a tremendous asset to this forum and I value your input on each and every post. I will let you know as this progresses on what happens from here on in.
Not looking at the total debt for awhile, it was brought to light when he said $96,000. I almost got sick! How did that happen? It's too easy and I know we've learned a valuable lesson. I'm going to take a bit of a break and let it all sink in.
Question to you, if you don't mind:
The car payment will be 30 days past due on October 19th but I'm sending in the payment to the trustee ( which includes the car ) on October 18th. Should I make that payment or just send the amount to the trustee? I know they won't get it on time and we'll show 30 days late. Even thought the BK is filed, will it matter that it's 30 days late? Should I send the payment in additon to the trustee's payment or just make that payment to the trustee?

[lrprn]

The car payment will be 30 days past due on October 19th but I'm sending in the payment to the trustee ( which includes the car ) on October 18th. Should I make that payment or just send the amount to the trustee?

The answer depends on how your plan is set up. Are you going to make your car payment to the lender directly "outside the plan" or is your trustee paying your car lender "inside the plan"?

If your trustee is paying your car lender, you don't send anything to the trustee - the payment will be made out of your Ch 13 payment eventually.

If you are paying the lender yourself, then you make your car payment as normal directly to the lender.

If you don't know which you are supposed to do, then talk to your lawyer before doing anything.

And congrats on filing! Must be a big relief!

[doglover]

That's great you are saving so much monthly. Both of our cars are in the plan. We were told by our attorney that as soon as we file stop paying everyone! I was very hesitant about this becuase both car payments are due 20th of the month and we filed on the 14th so they haven't received any money for September and our 1st payment to the trustee is not due untill the 14th of October. I talked to the car finance company and explained this to them and they told me as long as the car loans are considered "secured" in the Ch. 13 and the trustee receives their monthly payment then they'll get their money and it's ok. I was sooooo woriied about this same thing but after talking to the actual finance company I felt 100% better. If I hear something I will look out the window wondering if it's the repo man. We were current on our car payments up to this point but it just feels *weird* not paying our car payment.

I can't wait till our 341 meeting is over and we are confirmed.

[CindyLou]

I would certainly to talk to your lawyer but from what you have said it look like you are paying the car inside the plan which mean the automatic stay will go into effect and the car will be protected. All future payments will then be made by your trustee. Call you attorney first thing and monday and confirm, but once you file you shouldn't be making any payment on anything yourself. Congrats again on finally filing and beginning the first step to financial recovery. Looking over those BK papers can be such a shocker, especially the schedules that shows the creditors and the balances!!!

[jennordhavn]

Congrat on filing!

[$$only4ever]

Welcome to the Chapter 13 Club!

You know it is funny, but I have met and talked to some really great people on this forum that I would have never met had I not filed bankruptcy. Is that twisted or what?

[MajorMike]

Thank you everyone!