asset question

[inajam37]

Hoping with fingers crossed to get filed by the end of the month...wish me luck.

Couple of questions: we have to file Chapter 13...do we have to give up certain assets? For example: tv, furniture, stereo, etc.. I understand having to give up boat, camper, and others but wondered if my household items were included. There's some checklist that we have to complete for the attorney that lists various assets. Has anyone else had to give up these things?

Also, my husband works a second job. He hasn't quit yet but our attorney is encouraging him to do so. She said that the courts can't force him to work a second job just to pay back what we owe. All of our debt is unsecured credit cards...roughly $92,000. They are suggesting a repayment of $525 a month for 60 months and we would be paying back about 25% of our debt. Just wondering if this sounds about right to all of you that have filed.

One last thing, it mentions voluntary pension funds. My husband voluntarily contributes to his 401K plan...will he have to quit doing so? The attorney hasn't said anything to that affect...just wondering.

Thanks so much.

[nc73]

There are exemptions for furniture, household goods, tv, etc so no need to worry about that stuff. Yes your husband needs to quit his 2nd job, at least temporarily. 401k can continue and they can't take the money out of the account either. Payments depend on what you make, expenses, etc. It differs from person to person.

[coma]

Actually, in reference to the 401k, that depends on the district. Some places allow contributions up to a certain percentage, and some do not. your attorney will be able to advise you on that. The money in the account cannot be taken, though. As far as the payment, it depends on your disposable income, which is what is left over after all of your secured payments and allowable expenses are paid.

[inajam37]

Another question, we are not sure if we need to change banks or not. One of our credit cards is also where our checking account is through. It's not a credit union...should we still change banks? Also, if he does quit his 2nd job before we file, will they still use that income to figure our payment since we obviously will not be getting that income anymore? Our attorney talks like it won't be included but from everything I've read it says that it's your last 6 months income. Thanks for the answers.

[wayne-o]

the last six months most often applies to chapter 7. The attorney is encouraging your husband to quit because basically everything he makes will go to the trustee. I used wo work lots of overtime, my attorney advised me to take a break since EVERYTHING after my allowable expenses would be going to the trustee.

[coma]

the last six months most often applies to chapter 7. The attorney is encouraging your husband to quit because basically everything he makes will go to the trustee. I used wo work lots of overtime, my attorney advised me to take a break since EVERYTHING after my allowable expenses would be going to the trustee.

Yup...search for CATCHMEIFYOUCAN's posts. That poster was in a 13 with 2 jobs, quit one, converted, and is discharged. The judge just about told him to quit, as no one is required to work 2 jobs.

[EndInSight]

I think it is very advisible to change banks, no savings account right now (get a "piggy bank) and have no more than $25 in your your checking account. I'm sure your attorney will agree but do ask him/her to make sure.

Your assets should be fine as that is why C13 is good as it protects assets/house etc.

Your payment, while high, is not out of line for paying 25% back on what you owe but by all means.....drop the 2nd job!

You can do this...yes it's 60 months but everyone here is "here for you!" So keep in touch, ok?

Miss Posh aka "endinisght"

[inajam37]

thanks for the words of encouragement...i know that we're gonna need them. I'm working through the "shame" factor and just praying that friends and family don't find out. I know it sounds awful but it's our lives so it should remain our little secret. We'll definitely work on changing banks...it's a lot to get finished by the end of the month but hubby just got a bonus that our attorney doesn't want to include in the filing. Our attorney told us that as long as we didn't have more than $600 in our bank accounts that we would be okay? Does that sound right??? We're in Indiana by the way. What are the odds that our plan will be confirmed on the first try? Does that happen very often or is there usually a lot of going back and forth? Just trying to get our ducks in a row. Thanks so much...you are all the best...glad I found the site!!

[rrockinggramma]

in my humble opinion, confirmation is all about having enough funds to make the plan work. If your budget is within the allowable guidelines and you have enough to fund your plan per the plan submitted, confirmation is a not usually a problem. Sometimes creditors like to file objections but chapter 13's are all about negotiating with those that do object.