How much can you realistically save during a 13?

[flower04]

Just wondering if anyone who has been through or currently in a 13 has been able to save a substantial amount...and if so (if you wouldn't mind sharing) how much and how did you do it.

Seems like you can only save if you use less $ than you have alloted with teh trustee...and even though it is little. Although, anything little is better than nothing at all.

[chloe0724]

Flower,

It really is all about having the right attorney. The right attorney can make sure your plan has wiggle room. That wiggle room is where you can save.

[lrprn]

Chloe is right. Everything depends on two things - first and most important, how well your plan was put together by your lawyer to start with. Second, you have to avoid any major catastrophes that wipe out what little you are able to put aside.

Ch 13s are definitely not easy, but it is possible with consistent, strict budgeting and a lot of luck to put a decent sum of money aside for the inevitable rainy days when you won't have enough income to pay for something unexpected (medical, auto, house, kids, etc) that has to be paid for.

[HHM]

Strictly speaking, you are not supposed to be able to save during a chapter 13

Frankly, your ability to save during a chapter 13 is not up to your attorney, it is up to you and whether you have the fortitude to make the necessary sacrifices, (most people don't, hence, that is why more than 60% of chapter 13's fail).

Your attorney can make it a little bit easier to save, but really, this is not an issue you can blame or congratulate your attorney for, it's up to you.

[NowImDownInIt]

I am trying very hard to save money everywhere in my budget. I have a family of 3 at the moment with a food budget of about $400 a month. I am about to start using about half of that with Angel Food Ministries. So that's about $200. You have to be willing to make sacrifices. I never buy myself new clothes anymore. I just rework the old ones. I recently dyed a white button-up blouse that had some sort of soda stain or something on it a pretty mauve color. I'll buy clothes for my two year old at nice trift shops for 1/10th of what I'd pay at a normal store. I post things pretty regularly about saving money. I have also cut most of the cable I budgeted and got netflix saving me about $50 a month.... There are other things I've done that I can't really think of. You just have to be thrifty and then try not to spend the little you are able to save. I am going to have a baby in April, so I am doing most of this so that when the time comes, I'll have enought to get my son a toddler bed (probably second-hand), new baby a car seat (new), and a dual stroller (also new)... I'm going to wait until after any baby shower that might happen.

One thing I can say is that almost EVERYTHING in your budget is negotiable. You can cut costs in utilities, groceries, car costs (including gas), and almost everything else. BUT DO NOT, try to skimp and save by cutting insurance or 401k. You NEVER know when you are going to need that. I cut out short term disability a few years make. It saved me like $30 a month.... then I got pregnant with DS and had no maternity leave and no other income. That was step one on my path to Ch 13.

[NowImDownInIt]

Oh, and in answer to your question.. I think that anyone could REALISTICALLY save a few hundred a month if they really set out to do it.

[ansky0007]

We are in the middle of being between a 7 & 13, In a 13 we would have to pay back around 25% of the $300k we owe over 5 years. I expect my wife to go back to work after our child is born next year. But in a chapter 13 if she goes back to work they will just adjust the plan to make us pay more back and there would be no benefit to us. For these reasons and the risk of loosing our home we have opted to go for a chapter 7. In a 7 we would be in a much better place in the next years and would be back on our feet. If you have a chance to go with a 7 over a 13 I would highly suggest you look into it. From my understanding in a 13 if you make more income they will adjust your plan... I cant imagine dealing with this for 3 or 5 years.