Savings pre-13?

[flower04]

So, we are in teh 13 boat now and are living our budget..having anticipated to be starting our payment plan this month. We have to wait 90 days to file. I would like to take the money that we would be paying the trustee and put it in savings or something...but I know we'd have to give most of it to the trustee when we file anyway.

Is it a good idea to get cash and keep it in a safe or something like that? Will it look weird for $450 worth of CASH withdrawals to come out of our account? Will we have to supply receipts to that $450?

Just wondering. Trying to get this down.

[earningslost]

im wondering the same thing~ we may have to re-file our Chp.13 the payment is extremely high! we need an "Emergency Fund" for the unexpecteds which seems to get us every month.

[chloe0724]

Flower,

Look at your states exemption amounts for when you file. See what the dollar amount is, and keep your savings to that. Also, it's always a good idea to check with your attorney for advice and clarification. The last thing you want to do is throw a wrench into your 13.

[chloe0724]

im wondering the same thing~ we may have to re-file our Chp.13 the payment is extremely high! we need an "Emergency Fund" for the unexpecteds which seems to get us every month.

Have your expenses changes a lot since you filed? If not, you're going to find id hard to amend your payment plan. You have to have legit proof that you can no longer afford the payment as it is.

[flower04]

Our state can take up to 25% of wage earned income and all of non-wage earned income at filing.

Ex. If we had 100$ in our checking account on day of filing, we would only have $75 after we file. If we had $100 in a savings account, if we could document where it all came from (gifts, income, etc.), 25% of the earned wage income would be taken and 100% of everythign else.

[chloe0724]

FLower,

I think you misunderstood me. I meant exemptions regarding BK. Each state has laws allowing a certain amount of cash that can be kept when you file. See what that amount is. 25% seems like a garnishment amount, not an exemptable amount.

[brokeNconfused]

i dont give my wife access to the money, long story. I take out cash for her to grocery shop and etc. told my attorney and they said keep receipt. At 341 it was never mentioned. I think becasue the same withdrawls were going on before we filed.

[earningslost]

Have your expenses changes a lot since you filed? If not, you're going to find id hard to amend your payment plan. You have to have legit proof that you can no longer afford the payment as it is.

it seems as though we've just been hit every single month with unexpected, i.e. medical bills, orthodontic, tires, water leaks and repairs, pet hospital bills, higher gas, utilities and i think our attorney put our pretax income as our real income not after tax which made it look like we have a lot of disposable income. we met with them tomorrow- i have all my bills and receipts for everything that we've had to pay for extra. What is legit? can we go to the doctor or not???

[Flamingo]

it seems as though we've just been hit every single month with unexpected, i.e. medical bills, orthodontic, tires, water leaks and repairs, pet hospital bills, higher gas, utilities and i think our attorney put our pretax income as our real income not after tax which made it look like we have a lot of disposable income. we met with them tomorrow- i have all my bills and receipts for everything that we've had to pay for extra. What is legit? can we go to the doctor or not???

What a lot of folks do not get that file a Chapter 13 is that there is going to be a HUGE lifestyle change; that means you have to learn to do without, stay home and change all your ways to adopt to what you have to live on. Yes, that is extremely difficult for many and many find themselves after several months unable to make that Plan payment cause they just cannot cope or learn to budget. It is the biggest reason for Plan failure. You now have to take what money you have and budget it out - sometimes you have to get by on hot dogs and beans or mac and cheese for a few weeks to cover another bill. You have to save what you can on the side to cover the "unexpected" bills (which we all know are not really unexpected as anything can go during a 13 from a flat tire to a roof leak).

If it is just impossible to get through on what you have, you may have to consider if you really can afford the house you are in. If it is a constant struggle, discuss everything in full with your attorney and bring it all out - do not guess about anything.