Budget Help

[earningslost]

which was an ave over the yr $150 + the alarm service $25 + medical $100 totals $1550 which means I'm still short to make the $2000 a month pmt to the trust??? I guess what I'm needing help with is we think the attorney plugged in our income wrong and we now have the new IRS bill plus our income is about to decrease because the way they will pay out commission- We're meeting with the attorney tomorrow...Generally speaking, what should our payment be for the re-payment plan in Chp. 13?

[earningslost]

What you are experiencing is the main reason Chapter 13 plans fail. I indicated in another recent posting I made to someone in a similar situation that the BIG lifestyle change that comes with a Chapter 13 jumps up and slaps you hard in the face unless you are willing to learn to live frugally, stay at home and give up a lot of things. Without doing that, your plan will fail. It's an eye opener to say the least and it's hard to explain to friends, family and coworkers that you can't go out to lunch anymore, take that vacation trip or take the kids out after school for ice cream. It all has to go if you want to get out of your financial situation. Look at it this way, if you want to keep your house and all that you have right now, you will figure out a way to make it all work. We wanted to keep our house so we cut things to the bare bones and just learned how to say "no, we can't...sorry...maybe when things are better for us." Believe me, people understand. Cut the cell phone, cut the food and a few other things you list and you will see things improve. We did it and others have done it. You just need to look at what is important to you in all of this. If the home is strapping you, talk to your attorney. You vehicle payments are unreal and they were probably newer vehicles when you financed them and therefore are paid outside your Plan and could not be crammed.

It's all up to you...you already have a confirmed plan in place and have to figure out whether or not you actually want to make it work or let it fail.

which was an ave over the yr $150 + the alarm service $25 + medical $100 totals $1550 which means I'm still short to make the $2000 a month pmt to the trust??? I guess what I'm needing help with is we think the attorney plugged in our income wrong and we now have the new IRS bill plus our income is about to decrease because the way they will pay out commission- We're meeting with the attorney tomorrow...Generally speaking, what should our payment be for the re-payment plan in Chp. 13?

[Flamingo]

The end result of the budget was a negative balance of -$178 so let’s say we cut back groceries by $400+ supplies $100+ clothing/dry cleaning $250 + cell phone $250 + car maint. $75 + $200 home maint + pet care which was an ave over the yr $150 + the alarm service $25 + medical $100 totals $1550 which means I'm still short to make the $2000 a month pmt to the trust??? I guess what I'm needing help with is we think the attorney plugged in our income wrong and we now have the new IRS bill plus our income is about to decrease because the way they will pay out commission- We're meeting with the attorney tomorrow...Generally speaking, what should our payment be for the re-payment plan in Chp. 13?

I am assuming you are trying to modify your Plan as you state in your initial posting that you are already in a Chapter 13 Plan. It would be impossible for anyone to advise you what your payment should be because you have already paid back some debt on your Plan and you now have an IRS payment and other issues. Working on commission is also an issue and I fully understand that cause my husband is in retail and is bringing home $400-$500 less per month due to sales being so far down. Everyone, in and out of BK, is getting hit by this economy and financial crisis. You need to discuss your situation in full with your attorney and know that you will need to do without some things when you get this all resolved and make a firm commitment to try to make it work if you want to keep your house.

Best of luck to you.

[earningslost]

Did you file Chapter 13 to keep your home? It's possible you just cannot afford it or afford the vehicles.

We did not file to keep our home- Texas is a Homestead Exempt State the house pmt includes escrow for Ins. and Taxes with a 5% interest rate. We asked if we should get rid of the house but our attorney said at the time we would not qualify for a better rate or be able to sell the home. The vehicles are outside the plan as well one is a lease and it was our understanding that we could not put a lease into the plan and the 2nd vehicle is @ a 1.2% interest rate. We have been in the plan since October 07. We made our first two payments Nov. and Dec. We work on commission and made less $$$ so in Jan. and Feb we could not make the plan payment where we were given a stay- then we made the March, April and May payment then fell behind again in June for a water leak repair, tire damage, and a towing vehicle exp., kids eye exams and lenses, then in July received a dismissal threat from the trustee. We then came up short in Aug. and September with emergency home damage repair, and emergency hospital vet bill and I think the biggest thing is when we have made the payment we've fallen behind on other bills making it just harder to pay back. We've missed three payments and just short on two of the payments now. Should we sell the House? And if so... will someone rent to us or even let us barrow now that we have filed?

[earningslost]

I am assuming you are trying to modify your Plan as you state in your initial posting that you are already in a Chapter 13 Plan. It would be impossible for anyone to advise you what your payment should be because you have already paid back some debt on your Plan and you now have an IRS payment and other issues. Working on commission is also an issue and I fully understand that cause my husband is in retail and is bringing home $400-$500 less per month due to sales being so far down. Everyone, in and out of BK, is getting hit by this economy and financial crisis. You need to discuss your situation in full with your attorney and know that you will need to do without some things when you get this all resolved and make a firm commitment to try to make it work if you want to keep your house.

Best of luck to you.

Thank you for help~ I posted the other day about maybe voluntarily dismissing the plan and starting over but the adv. we've read here maybe not a good idea. Looking at the paper work form 22C- It list us have only $1270 disposable income so we question why our payment is $2000? We'll take it up with our attorney tomorrow.

[woeisme]

That is a good point, that your disposable income and payments don't match. It could have something to do with having to pay secured debts in full, but if that is not your case, then definitely ask your attorney about it. I think you've done what you can at this point, listing your actual expenses in your budget, and take this to the lawyer meeting. Have you included everything? Insurance payments? License/registration fees, every possible expense that comes up periodically? There's a thread on here somewhere with a link to budget expenses, try a search and see if you can find it, might really help with those "never thought about that!" type of expenses.

[liz417]

Hi earningslost,
After looking at your expenses, they do seem high. For example, the cell phone bill...$250/month? Although, we have a cell phone, we have the basic plan that includeds free mobile to mobile calls (I'm sure that's available with your carrier too!) and we make sure our family/friends have the same carrier (we found out before we signed up with this carrier), so any talk would be free! Like all the previous posters have said, it's about getting creative and cutting were you can.
Before you go to your attorney tomorrow, double check the IRS standards/allowence for your area and their numbers with yours...that's how I think you are falling short everyone. Just because "you have x amount of expenses, doesn't mean that the Trustee will accept them! Look into it.

Good Luck!

[earningslost]

Hi earningslost,
After looking at your expenses, they do seem high. For example, the cell phone bill...$250/month? Although, we have a cell phone, we have the basic plan that includeds free mobile to mobile calls (I'm sure that's available with your carrier too!) and we make sure our family/friends have the same carrier (we found out before we signed up with this carrier), so any talk would be free! Like all the previous posters have said, it's about getting creative and cutting were you can.
Before you go to your attorney tomorrow, double check the IRS standards/allowence for your area and their numbers with yours...that's how I think you are falling short everyone. Just because "you have x amount of expenses, doesn't mean that the Trustee will accept them! Look into it.

Good Luck!

we've called the cell phone company every single month "it's like a part time job" our bills are usually over $881 for jacked with billing- I then argue the amounts charged and they then comply and make adjustments. this last billing cycle they ajusted our bill $629.43~ they promised me this past month my bill would be no larger than $179.00 and low and behold its $251.43- I'm about to throw the cell phones out the frecken window.

[earningslost]

That is a good point, that your disposable income and payments don't match. It could have something to do with having to pay secured debts in full, but if that is not your case, then definitely ask your attorney about it. I think you've done what you can at this point, listing your actual expenses in your budget, and take this to the lawyer meeting. Have you included everything? Insurance payments? License/registration fees, every possible expense that comes up periodically? There's a thread on here somewhere with a link to budget expenses, try a search and see if you can find it, might really help with those "never thought about that!" type of expenses.

THANK YOU- I just redid our projected exp. for October and here's what I have so far-
Income
$9451
Bills
IRS $350
House Pmt. $2859
Car#1 $772
Car#2 $558
INS. $380
Electric/GAS $530.43
WATER $61.29
Phone/Cable $160
CELL Family Shared / Business Line $250
HOA $83
Alarm $25
Ozarka $45
$6001.72
School $235
Groceries $515
Hm Supplies $100
Gas $500
Ortho $205.75
Medical $739 (bills from not meeting deductible, unexpected surgery)
Prescriptions $60
Clothing $0
Car Maintenance
$191.30 (oil chg, car reg. and inspection)
Home Maintenance
$0
Pet Care $100 (our vet bill that we need this week and next)
Available funds
$731.23
As you can see we still don't and won't have the $2000.00 UGH!!!

[earningslost]

ok we met w/our Attorney- and it looks like we will ask the courts for an adjustment to the plan. woo hoo; maybe this will work out after all :'/

[NowImDownInIt]

Good luck!! Let us know how it all turns out. I will probably have to make an adjustment to my plan next year, due to a new baby and a whole list of new expenses that come with...

[earningslost]

Good luck!! Let us know how it all turns out. I will probably have to make an adjustment to my plan next year, due to a new baby and a whole list of new expenses that come with...

I just went to simple planning dot com- love it! the attorney appt went well~ She agreed that its math not magic... (huh)