what do you wish you'd have known?

[brightfuture]

Hello,

We are in the early stages of filing chapter 13 due to a failed business and bad realestate decisions. Filling out lots of paperwork and getting stuff together for attorneys. Hoping you might share the pitfalls. What do I need to look out for? Any advise is welcome. We are filing in Michigan.

Thanks,

Hoping for a "Bright Future"

[rrockinggramma]

You are filing a chapter 13? Are you in the Eastern or Western district of Michigan? I am in the Eastern. Exemptions are low. Just make sure your attorney draws up a good budget for you that you can live with for the next 5 years, that your cars will make it through the plan. If you have a lease that ends while in the plan, you might want to talk to your attorney about doing something different etc. Decide ahead of time what you really want to keep and what sacrifices you are willing to make to keep it. But the key in a chapter 13 is your budget. Michigan is pretty straight forward I think, and my trustee percentage is only 4 percent, which isn't too bad compared to some.

[helpless]

I wish that I would have known to go out and purchase another car to get me through my CH 13. When we filed in 2005, we had 2000 car and a 1999. Am stuck now making $$$$ repairs that we can not afford, but have to because we both need to get to work. I just coughed up $800 in repairs over the last week. Don't ask me how I managed to do it financially because I am still trying to figure that one out. Only 8.5 more payments and I should be done.

[HeatherB]

hmm.... I guess what I wish I would have known was that the late payments I had before bankruptcy would still show on my credit report. (those three months).

I wish I would have known to check my credit report sooner. (waited 3 years) and to clean up all discrepencies.

I wish I would have known that I'd end up converting to a 7 anyway. LOL

That's about it for me.

Another thing to make sure to "know" before hand is that if you plan on filing bk on your utilites, they will require a large deposit to keep on. (only adviseable if the $$ you owe to utilities is a LOT higher than a regular bill - I owed over 800 - I need only pay 300 to get turned back on at the most)
Also, if you plan on including a CC through your bank, there could be a cross collateral clause. Make sure if you go this route, you have a different bank account opened before filing.

[brightfuture]

Thank you so much for your responses. We are in the Eastern District of Michigan. How are the trustees? Are they pretty understanding about the budget? Obviously that is my biggest worry. I did on your advise and the advise of my attorney go out and buy a new car, I have a five year note (got 0%) could not believe I was approved. My Husband has a car that is 5 years old but we just paid that one off. I don't have a lot left at the end of the month so I think another car payment might be a problem.

Are there any costs that you left off your budget that you wish you would have added?

Thanks for all your input.

[chpxiii]

That a credit card from Circuit City was NOT SECURED! I ended up paying on a stupid digital camera that was listed as secured but it really wasn't.

Ah well.. lessons learned in life.

[krielly]

Same thing could have happened to us. We had a line of credit on furniture (couch and love seat). At the time of filing, the paralegal was going to list it as secured, but my attorney looked at the contract and said "this isn't secured", show me where it says "secured". He was right!!!!!!!
I just assumed since we got the credit extended through the furniture store, that it was secured, but it technically wasn't, as it was just a line of credit.

Check those loan contracts!!!!!!!!!!
K

[rrockinggramma]

in Michigan my trustee is David Ruskin. He is fair and reasonable. At my 341, the only expense questioned was my cable, which included my internet. No problems at all. I do have to submit my tax refunds so if you get a big one, change your W2's NOW to break even. You don't want the trustee to take your money. My budget was reasonable but look ahead. If you have kids, you want to be sure those school extra's are included, like clothes and braces etc.

[emoney]

I learned the hard way that "reward miles and dollars" are lost on CC when you file. I should have used them before I filed.
After filing BK it is hard to open new bank checking accounts, if you are going to change banks do it before filing.
regards,
emoney