In debt for years, robbing Peter to pay Paul, pay $80 to credit card A, withdrawing $40 cash from same credit card to pay credit card B to keep them both current for so long. Tried to do CCCS but it really was a joke. CC wouldn't participate until you are xx days behind. Then they start offering programs, etc. after you've endured hundreds in late & otl fees. Some of the payments on CCCS were actually going to go up. After their proposals I was showing -$400 still. I needed 6-7 years to pay off in payments I could afford, and they only work up to 5 years. But the proposals were for 4 & 4.5 years. Tried for mortgage freeze, my mtg company "wasn't participating in that." Tried for modification but would still be $-150. I wish we would have filed before that first last payment last February instead of trying to work things out and pay it all off eventually. Instead we drove our credit scores completely into the ground and have multiple charge-offs on CCs, multiple 30-day lates on cars & home, and some 90days on personal loans. If we would have filed in Feb. our credit score would probably be 100 points higher than it is now and we would have nearly one year of ch13 over. I haven't actually checked our scores, but I'm sure they must be down into the 300s or low 400s. The fico-simulator estimates them at 480-520 but I doubt they are that high, since they were only about 660 before the downfall.
My payment for 5 years to the Trustee is about $1800. This includes everything -- house, vehicles, attorney's fees, arrearages, trustee fee. Unsecured will get probably $0. This leaves us with about $1800 for gas, food, utilities, medical, clothing, etc. We spend $500 for gas, minimum $500 for food, $200 for insurance, $100 for co-pays/prescriptions, and $300 for utilities and phone. That leaves $200 for clothing, car repairs, and entertainment, or I could choose to pay my student loan to keep the balance from growing. I expect no raises this year or next for myself. My husband will probably get a small raise after the first of the year. (small= $50/month)
Our ARM will adjust for the 3rd time in February, and I'm sure it will go up, raising our plan payment. This is going to be really tight and tough, but our only other option would be to sell/lose the house, which we don't want to do. This payment is about $950. We could save $100-$150/month to rent a comparable home. (not fancy by any means; 3 bedroom, 1300sf home), but for that little savings, it's just not worth uprooting my daughter for. Plus actually anything I saved would probably end up going to the nonsecureds anyway. Maybe I can get an extra temporary job in the summer to put back in case my 1992-model refrigerator conks out.
My recommendations: If you are in a situation where you are considering filing BK and can't seem to work it out, quit putting it off. Money will not fall out of the sky. The stress, phone calls, multitude of mail, etc. is not worth it. You want to do what's right, but your family's well-being is the most important.
My payment for 5 years to the Trustee is about $1800. This includes everything -- house, vehicles, attorney's fees, arrearages, trustee fee. Unsecured will get probably $0. This leaves us with about $1800 for gas, food, utilities, medical, clothing, etc. We spend $500 for gas, minimum $500 for food, $200 for insurance, $100 for co-pays/prescriptions, and $300 for utilities and phone. That leaves $200 for clothing, car repairs, and entertainment, or I could choose to pay my student loan to keep the balance from growing. I expect no raises this year or next for myself. My husband will probably get a small raise after the first of the year. (small= $50/month)
Our ARM will adjust for the 3rd time in February, and I'm sure it will go up, raising our plan payment. This is going to be really tight and tough, but our only other option would be to sell/lose the house, which we don't want to do. This payment is about $950. We could save $100-$150/month to rent a comparable home. (not fancy by any means; 3 bedroom, 1300sf home), but for that little savings, it's just not worth uprooting my daughter for. Plus actually anything I saved would probably end up going to the nonsecureds anyway. Maybe I can get an extra temporary job in the summer to put back in case my 1992-model refrigerator conks out.
My recommendations: If you are in a situation where you are considering filing BK and can't seem to work it out, quit putting it off. Money will not fall out of the sky. The stress, phone calls, multitude of mail, etc. is not worth it. You want to do what's right, but your family's well-being is the most important.
Comment