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Signed on plan today and given payment amount.....

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    Signed on plan today and given payment amount.....

    My spouse and I met with our attorney's paralegal today to sign our plan and to go over our payment amount. We had expected a payment somewhere between $1,000-$1,400. We have about 54k in loan/credit debt and have two cars that we thought we were going to be paying outside of the bk.

    When we looked at the plan the paralegal noted that we would be paying back 86K over 60 months with a payment plan of $1,313. She also noted that the lawyer decided that it was in our best interest to pay one of the cars in the bk because we have had problems with the credit union that we financed it through wanting to take it back (even though we are up to date on payments) due to cross collateralization on loans and cc from them that we are including in the bk. He said the car will be safer that way and actually will be paid off through the bk faster than it would have been if we paid it outside of the bk.

    We were pleased with this payment (especially considering it included the car). I know things could change with the payment a little but right now this plan amount will allow us to pay our debt without going completely broke.

    One of the things that I did have a question about concerned my student loans (they cover a bachelor's and master's degree and several classes required for my job). The amount is pretty high and had been previously consolidated and were on a deferment which was due to end in August. She said that the secured student loans would be added into the plan but not pay on them. Does that mean they are going into deferment due to the bk during the plan or does that mean they are going to be added into the payment at a later time?

    Anyway, we will have our case number in the morning and she said we should have our 341 meeting date by the beginning of next week. She said not to stress out about it and to bring only a picture id and ss card with us.

    She also stressed that we should not contact any creditor with info. She said if they contact us we can answer and give them the case number but she said other than that not to contact anyone (she said the court would be doing that (thus starting our automatic stay). Does anyone know how long that takes?

    Sorry for all of the questions-I am just so ready to get this show on the road.
    Hopefully we are on our way. I will be sending payment #1 on 8/1/08.

    #2
    I don't have any answers for you, but I want to say congratulations, you are on your way.
    Disclaimer: Young, NOT Dumb.(._.) The plan: $480 monthly for 60 months at 100%. 07/12/08
    Motion to Discharge: FILED!! 08/07/13
    60 down/0 to go \m/(*.*)\m/ 100% complete!

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      #3
      the student loan lender will probably file a claim and some payments will be made on them in your BK. They are "suspended" once they are alerted of your filing. So you will not be making any payments on them while in your BK.

      I hope you have no issues with your credit union over the car. They will probably be the worst creditor to deal with. If they get too bad, ask your attorney about 722 redemption (chapter 13) and make sure they release your lien when you are done.

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        #4
        Thanks for your responses. I hope the car does not become too much of an issue because I desperately need it for work. It is very sad because we had a 20 year history with this credit union with no problems and great support and we went to them first when we started having problems and they basically told us they didn't care. When I spoke with one of the reps from our local branch (this is a nationwide credit union she said it was because so many had been defaulting that customer service at the main level had gone down the drain). Hope to find out something about the student loans soon because my derment ends in August.

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          #5
          My student loan company decided that I had "defaulted" on my loan after being notified of my CH 13 filing (I'd never missed a single payment, mind you!) so the federal guarrenteer agency took over the loan from that point. Luckily my trustee allowed me to include my student loan payment in my budget, so it continues to get paid outside the plan, so I still don't see how I'm "in default" but that's just the way it is since the student loan company said they couldn't "force" me to pay on it while in CH 13, all my payments are voluntary at this point. So anyhow, be prepared for the idea that your student loan company (Nelnet in my case) may decide you've defaulted and then you will just owe the money to the guarenteor agency instead.
          Filed CH 13 September 17, 2007
          Plan Modified July 8, 2009 from $1100/month to $400/month due to change in income, finally discharged in July of 2013!

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