Update: Schedules filed. Timeline filled in.

[NowImDownInIt]

I had a meeting with my attorney Saturday. Really it was a meeting with his paralegal, but same difference right. Heh. It seems that since my boyfriend lives with me, my income is higher than they estimated. The original payment they gave me of $400 monthly over the next five years has changed. My official plan now states that I will pay $700 monthly for 3 years. I am trying to focus on the positive here that the plan is shorter, but all I can think about is how difficult it already is for me to budget and in 8 months I will have another mouth to feed and I am so tired and frustrated. I am paying back 60% to unsecured and that is the lowest they can go. I am $20,000 BELOW the median income for a family my size. I just need to go a few days without thinking about this, but I have so much homework for it that I can't. And speaking of homework, I start school this Friday, so there's more for me to worry about. My attorney informed me that my 341 is going to be approximately 6 weeks from now.. So there is that to look forward to. I can't wait for this to get started, so it can be OVER.

[berrymom31]

If you are 20,000 below the median...why aren't you filing 7? Are you keeping some secured items? If you are, maybe you should think about giving those up?

[NowImDownInIt]

I am keeping my car. I would be unable to procure another one.. and I need a car. I am behind in my notes, trying to catch up. I wouldn't be so far below the median if it weren't for being laid off earlier this year. I am trying to do what I can to just get back on track. I am content with paying it all back, I just wish they'd have stuck with the earlier plan..

[liz417]

I had a meeting with my attorney Saturday. Really it was a meeting with his paralegal, but same difference right. Heh. It seems that since my boyfriend lives with me, my income is higher than they estimated. The original payment they gave me of $400 monthly over the next five years has changed. My official plan now states that I will pay $700 monthly for 3 years. I am trying to focus on the positive here that the plan is shorter, but all I can think about is how difficult it already is for me to budget and in 8 months I will have another mouth to feed and I am so tired and frustrated. I am paying back 60% to unsecured and that is the lowest they can go. I am $20,000 BELOW the median income for a family my size. I just need to go a few days without thinking about this, but I have so much homework for it that I can't. And speaking of homework, I start school this Friday, so there's more for me to worry about. My attorney informed me that my 341 is going to be approximately 6 weeks from now.. So there is that to look forward to. I can't wait for this to get started, so it can be OVER.

Hi there,
You state that you are at a 60% payback and only on a 3 year plan? I thought the "usual" for anything less than 100% payback was a 5 year plan?!?
I sure someone with more experience will chime in soon...
$700/month (for 3-5 years) is a large payment; is the car really worth it? Could you BF or family memeber find you a nice reliable car?

Good Luck!

[becky20]

You say that 60% payback to unsecured is the lowest they can go? I'm filing a 13, we qualified for a 7 but wanted to save the house and cars, so we're filing a 13. Our entire payment includes 2 crammed-down cars, arrears payments on house and cars, and trustee fees, and is $550 - over $200 less than we were paying just for our two car loans. Our unsecureds are getting 0%.

[BKParalegal]

First, since she passes the means test, her plan can be anywhere from 36 to 60 months. Lastly, the new laws make us do "Heads on a Bed" and anyone in the house (husband or boyfriend) that brings in an income has to be counted as contribution to the household. I hope your attorney factored in the new arrival in 8 months. I am a bit shocked that you are paying 60% to your unsecureds, unless your unsecured debt was relatively low. Based on $700 over 3 years, your base plan is $25,200 less 10% trustee fee it comes to $22,600, less atty fees (around $2500 in the plan) comes to $22,600. So either you are paying around $15,000 in unsecured debts or you put the whole vehicle in the plan and you had just a few thousand in unsecureds.

Good Luck

[NowImDownInIt]

You say that 60% payback to unsecured is the lowest they can go? I'm filing a 13, we qualified for a 7 but wanted to save the house and cars, so we're filing a 13. Our entire payment includes 2 crammed-down cars, arrears payments on house and cars, and trustee fees, and is $550 - over $200 less than we were paying just for our two car loans. Our unsecureds are getting 0%.

They couldn't go any lower in my case with my income. My car can't be crammed down because of the 910 rule.

[NowImDownInIt]

First, since she passes the means test, her plan can be anywhere from 36 to 60 months. Lastly, the new laws make us do "Heads on a Bed" and anyone in the house (husband or boyfriend) that brings in an income has to be counted as contribution to the household. I hope your attorney factored in the new arrival in 8 months. I am a bit shocked that you are paying 60% to your unsecureds, unless your unsecured debt was relatively low. Based on $700 over 3 years, your base plan is $25,200 less 10% trustee fee it comes to $22,600, less atty fees (around $2500 in the plan) comes to $22,600. So either you are paying around $15,000 in unsecured debts or you put the whole vehicle in the plan and you had just a few thousand in unsecureds.

Good Luck

Right, you are. I don't have much in the means of unsecured debt. I am taking this as an opportunity to save my car and fix the problems I DO have so I can start fresh early. I have about 15,000 in unsecured... but we see that number going down.

[krielly]

Maybe I am missing something here, but why on earth would you pay $700/mo for 36 mos (over 25K) just to save a car???????

If you can file a Chapt 7, you should, and dump the car. Save up the $700/mo and use it to purchase another inexpensive car until you get a discharge, and can get a loan.

There is NO car that is worth 25K and 36 mos of being under close scrutiny of the trustee....... especially when you have a baby on the way.

Please rethink this one....................

K

[NowImDownInIt]

Personally, I don't WANT to file a Ch 7. I WANT to save my car, and pay back my debt. I just wish they'd have stuck to the original 5 year plan... That's the part that kills. I'm paying back the same amount as I would have over 5 years and the way I look at it, it's not $700 a month for a car, although that is a lot of it. It's $700 a month for everything that has plagued me. My original car note was $393 a month at an 18 % interest rate. The plan is dropping that interest rate to 7% and it will be paid off a year earlier. I imagine an ammendment is in my future for the larger household, but as my paralegal informed me, we'll deal with that as it comes.

[krielly]

Well, that's what it will amount to. $700/mo, just to save your car. Not trying to be snotty or anything, but if that's the only reason you are filing a 13, it's not worth it, in my opinion.

Filing a 13 is not going to look better to creditors than filing a 7. If that's what you are thinking. Trust me. We've been in one for 3 years. They don't distinguish. In fact, in my experience, we would have been better off doing a 7, rather than the 13 in that we would have had a discharge almost 3 years ago, and could have been well on our way to rebuilding our credit by now. Instead, we're in this for another 2 years. Not fun..............trust me.

It's up to you, obviously. Just something you should really think long and hard about.

K