New- Can you help?

[bysrck]

We are thinking about filing Chpt 13....would we get to keep our home and cars? Just wondering how it works??

[AboutToBK13]

We are thinking about filing Chpt 13....would we get to keep our home and cars? Just wondering how it works??

Yes, a chapter 13 can save the house and cars.

The question you have to ask yourself, is it worth it? Can you maintain the payments on home/cars once you have made it through the ch 13 plan? Are you upside down in either the cars or home? Depending on the answer to those and other questions, it may be better for you to walk away from one of the vehicles or the home.

First things first, find yourself a very good lawyer if you are going to file a CH 13. The better the plan that the lawyer files for you, the better off you will be.

[bysrck]

Thanks so much....depending on how much the payment would be on the Chapt13 we would probably be able to make the payments.....if we have some equity in our home can they use that?? Thanks for all of your help

[isitreal]

I think you will find that all will tell you that each case is different. It really depends on what you have as "disposable income". I believe there are some links to tests somewhere in the forums.

Basically filing a chapter 13 allows you to protect assetts like a house and cars.

For some it works... for some it is not doable. An attorney is probably the best bet for advice. You can get a low-cost consultation pretty much anywhere (I think ours was $50.00).

Check out my post yesterday on how filing has changed me so far:

http://www.bkforum.com/showthread.php?t=20314

[bysrck]

How do they determine the payment and how much it will be?

[isitreal]

Well.. Like I said.. it's different for all. Here is my situation. It was determined that my disposable income was MORE than it would take to pay back 100% of the unsecured debt I have. They calculated how much unsecured debt I had... added attorney fees and interest for the trustee and divided by 60.

Others do not have the disposable income to pay back 100%, which can still be done and is more common (from what I've seen) in filing chapter 13. Some pay back a percentage, say 65%, of the total debt. It all depends on what your disposable income is versus what it would take to pay back your debt over 36 or 60 months.

Either way, after that 36 or 60 months, that debt is discharged. (gone!)

[bysrck]

Thanks...this whole process has me in shambles!! and STRESSED
I appreciate all of your help and stories

[AboutToBK13]

It depends on your allowable expenses, income, etc. Once you have those toghether, then you can determine what your "disposable" income is. Your "disposable" income determines how much your Ch 13 payments are.

Filling out the forms is like filing taxes. Only harder in my opinion. We have a decent lawyer helping us through the process. I would be lying if I said I could do it on my own.

[isitreal]

One thing to remember... Others are in the same boat.. you are not alone. I always heard such bad things about bankruptcy. I felt like a failure for considering it, but I had little choice. Now that I have researched it and went through with it I wonder what the heck took so long! My life has so much less stress (is that proper grammar?) now that I am almost like a new person.

And to think.. I'm actually going to be paying these people back what I owe them! I never wanted to run away from my debts, my whole goal was to be able to pay them back. I just wanted to be able to afford the standard of living in the process.

[isitreal]

I agree with AboutToBK13 100%. It's not something I would do on my own... Especially a Chapter 13. My attorneys fees were included in my payment plan, I'm not sure if all will/can do that.

[bysrck]

I am just racked with stress over this...I know there are many people in the same situation and I have a legal plan through my job so I can get a lawyer at a reduced fee..which is good....I just don't want to feel like I failed.....I know it is my fault for spending the money..and I don't want the payments to be charged off...I want to pay them it's just I can't do it now.....UGH!!

[isitreal]

Don't look at a chapter 13 as your debts charged off... They don't go away in Chapter 13. All a Chapter 13 does is allow you to pay for living expenses FIRST and pay what you have leftover to the debts. After the 36/60 months, whatever is left is discharged ("charged off").

Trust me.. I had little idea how much I was sacrificing my living expenses to pay debts first until I talked to my lawyer. To think.. I would make the kids wait for haircuts because I had to pay for a credit card! No more of that nonsense.. I'm back in charge now!