Lawyer consulataion

[MomIcantFindmy]

Wheeewww...

I finally found a lawyer that I like. He is charging $2500, as opposed to the last one who wanted $6000. We have to file chapter 13 and my teen daughter gets to keep her car. He told us our monthly payment would only be slightly more than we are paying right now for our autos (and that includes the autos on the payment plan). I'm worried though because we have a substantial cash advance in late August as well as numerous charges for gas and groceries since then....up till Ocober 13th. (We didn't know any better) Now we are paying cash for gas and groceries instead of robbing Peter to pay Paul at the end of the month. So I am very worried what the trustee will say at the creditors meeting. Any advice?

One more thing..........he is checking to see if military retired pay can be excluded as income in the debt repayment plan....(it must be included in the means test).....anyone know?

October 25 Lawyer consultation......(Like going to the doctor when you know you are sick.....and being told...."WOW, you are sick!")

[SinkingFast]

Creditors are much less likely to Object to recent charges when the Debtor files a Ch 13. They get a chance to file a Claim and get back a portion of their money. As opposed to a Ch 7 where the Creditors generally get nothing. If the attny it as an issue, it probably won't be.

On the income thing,........... Income that is normally considered Exempt from taxes and garnishments is usually considered when it comes to your ability to repay your Creditors.

Your attny may find some Case Decision or Opinion to argue otherwise, but I wouldn't count on it. BK Code is pretty clear when it says "all disposable income" be devoted to repaying Creditors. There are people posting here who's pension, SSI, and SSDI payments are included in funding their Ch 13 Plans.

Just a personal recommendation,............ Consult with a couple more attnys. The fee this one is gonna charge is more in line with what I'd expect to see. If you visit with a couple more, you'll get a chance to meet more people. See if you're truly comfortable with this person handling your case. Plus you'll get a couple different perspectives on how other attnys might approach your case.

And, an FYI for you,............ Including your car payments in your Plan can be good and definitely is bad. Good for you that you're sure those payments will be made. Bad in that the Trustee is gonna take 7%, 8%, maybe 10% of what you pay. Would you pay Western Union $35 every month to make a $350 car payment for you??

[rrockinggramma]

I know that trustee's charge a fee. My trustee is only 4 percent. I included my car. It was a good decision. When you do that, all interest stops. The lein holder can only file a claim for the principal balance owed. The trustee will determine the interest rate the lein holder will receive. In my case, they got 6 percent. My car was paid off 3rd in line. (after attorney and IRS). As it was paid in full so early, my lein holder released the title to me and a paid in full statement. I even crammed it down (under old laws) In addition, I had no worries about the car payment being made. As the trustee was paying it off before any unsecured creditors, they received big hunks of money right at the start of the plan. No more hiding it in the garage. LOLOL I suppose some trustee's out there are greedy and charge that 8 percent monthly fee but my average monthly trustee fee runs about 25.00. To me it is a small price to pay for the peace of mind I have received in return.

[MomIcantFindmy]

Great advise. I really love this board. It has helped answer so many of my questions. Wish I could start sleeping better at night.