Becoming fearful of filing a 13...

[dscurlock]

This tells me I need to ask him more questions. I don't even know what a zero payback plan is. (I thought the purpose of a 13 was so that some creditors did at least get something as opposed to a 7 where they get nothing). He didn't use the phrase zero payback at all. He did tell me that my unsecured creditors would get nothing, but he showed me on his worksheet that my (3) secured creditors (consisting of an auto, furniture & appliances) would get a portion even though the amount he showed was a lot less than what I actually owe them.
As to why the one vehicle (we want to surrender) is not being included is beyond me. He just said I could call them and tell them to pick it up. He insisted they could not get a judgement against me, which I really don't understand. I just don't have a warm feeling about this, but his office handles tons of BK's in our area here in Texas.

Ken

If your auto is not included on your BK plans, then I see no reason
why the auto could not come after you if it is not listed as
part of your BK....

how many atty's have you consulted?

[hearr]

Just this one, but as I said, they handle tons of BK's in our area. You would think they'd know what they were doing.

Ken

[dscurlock]

Just this one, but as I said, they handle tons of BK's in our area. You would think they'd know what they were doing.

Ken

did they give you a clear reason why the auto would not be included
in your BK...that would concern me, and if I was not satified with
their answers...

maybe you should start another topic on this..someone smarter then
me surely knows the answer..but common sense says if it is not
included in the plan, then it leaves it open for creditors to persure...

[BNKRPTinNC]

Met with attorney twice before filing. First to make sure that is what we wanted to do and the second time was to wrap things up. Nine months into plan and contacted attorney twice by phone for some clarification and have, as yet, not heard from trustee. Not required to give tax statements unless asked. Currently saving $500 bucks or more each month. Am on a 0% payback of $90K unsecured. The only monthly bills I pay outside of the plan are insurance, electric and phone. Property taxes and such are a once a year thing and those I also pay. Car, RV, house, and arrears are all in the plan. It's kinda funny that the only ones really making any money are the atty and the trustee. Nothing has changed for us financially since filing but we have cut things to the bone and watch every penny spent so that we are able to save as much as we do.

All in all this has been the best thing we could have done for ourselves from a financial standpoint and have not experienced any of the nightmares that some have posted. The most important thing is to have an atty that knows what he/she is doing. We had been all the way thru our 341 and had the plan in place before I even knew of this forum. Don't get me wrong, I wouldn't want to ever go thru this again but, so far, it has been smooth sailing.

[klandsb]

BNKRPTinNC.... Did I read it correct...You are paying 0% back in unsecured debt.. I am so scared that I will have to pay back the entire 30, 000 I have in cc debt. My house & car are paid up to date and never been late..I'm not bragging but I will pay those 2 things before and credit card pmt .I guess every case is different so who really knows until is done what you will be paying....

[klandsb]

woops..I meant to say I will pay my house & car pmt before "any" credit card debt..

[hearr]

The only monthly bills I pay outside of the plan are insurance, electric and phone. Property taxes and such are a once a year thing and those I also pay. Car, RV, house and arrears are also in the plan.

This is another thing that confuses me. He also told me that my mortgage would be paid outside the plan. And for me just to continue those payments as normal. Now I should say that I am not in arrears on my house and have always been current, so I don't know if that matters in my case, nor if this has anything to do with me living in Texas. But again he said my house payment would be paid outside the plan; and my mortgage payment includes my real estate taxes & homeowners insurance. Does this not sound right?

Ken

[$$only4ever]

I have 8 payments remaining on my Chapter 13. The best advice that I can give is that you have to change your mindset. Gone are the credit cards. You have to learn to live on a "cash only" basis. It is hard at first, but does become easier over time. You then have to decide the want to haves and the needs to have and save accordingly. Yes, you can save $$ during your bankruptcy.

It is hard to believe, but I am in the best shape financially now and it is because I filed a Chapter 13. Once my plan ends, I will be completely debt free.

Everyone, hang in there. I promise, it does get better.

[walkthaplank]

This is another thing that confuses me. He also told me that my mortgage would be paid outside the plan. And for me just to continue those payments as normal. Now I should say that I am not in arrears on my house and have always been current, so I don't know if that matters in my case, nor if this has anything to do with me living in Texas. But again he said my house payment would be paid outside the plan; and my mortgage payment includes my real estate taxes & homeowners insurance. Does this not sound right?

Ken

Different districts have different rules with regards to mortgage payments. Be glad that the mortgage payment is not included in your plan, the trustee fee is a percentage of the total amount of your payment. The higher the plan payment, the higher the trustee payment.

[BNKRPTinNC]

Different districts have different rules with regards to mortgage payments. Be glad that the mortgage payment is not included in your plan, the trustee fee is a percentage of the total amount of your payment. The higher the plan payment, the higher the trustee payment.

True enough but I would rather pay 5.5% to the trustee even with the added mortgage payment than pay 30%+ interest on cc debt. I am not certain but I wasn't offered an option of paying the mortgage outside the plan so it may be that this district requires it.

klandsb,
0% on unsecured is correct. As mentioned we had an atty that was on the ball. After reading some of the posts we have had an atypical experience with our bankruptcy. One thing I might add was we filed during the height of high gas prices and our expenses, at that time, were much greater than they are now.

[woeisme]

I think he said you don't have to worry about car and judgement because you are paying back 0% to unsecureds. So even if the car people come after you, they get 0% because once the car is returned, any deficiency balance is unsecured.

I also pay my house outside my plan. Nothing changed when I filed except they were notified. It's included in the paperwork (as I think your car will be) but not included in the trustee payment, if you know what I mean.

Seriously, if you live in a debtor friendly place (and I hear texas is, at least with wage garnishment) you might be worrying for nothing about all this. Certainly talk to some other lawyers to see if they agree on the situation, but don't drive yourself crazy sure that CH 13 is going to be a horrible experience for you. I am paying $400 a month now to my creditors, and I owed $100,000! That's less than 25 cents on the dollar, and my life is so much easier now than I had feared it would be!

[TooMuchCredit]

Ann

I filed last week as well and here is some of the things my attorney has put in my plan (Schedule J)

MTG - 3000
ELECTRIC/GAS - 345
WATER - 125
CBL/CELL/PHN/INTERNET - 185
HOME MAINT UPKEEP - 75
FOOD - 433
CLOTHING - 85
LAUNDRY - 20
MED/DENTAL -60
TRANSPORTATION - 245
RECREATION - 125
HM INS - 110
CAR INS - 107
REAL ESTATE TX - 400
STUDENT LOANS - 335
PERSONAL NECESSITIES - 50
CONTINGENT EXPENSES - 350

Because my income is high, on the means test it looked as if I had over $2500 a month in DMI. My attorney says that they are not going to use that for a basis of what I have left over but the they use the Schedule J and what is left over on that. Hope this help you get an idea.
Oh, I am a single filer no dependents, in SE Virginia.

Honestly, I would prepare myself for objections and a higher payout unless you are paying a substantial % to unsecured in your plan. I am a single filer too, but in GA. From what I gather here, they use Sched J as well, but the figures on B22C and Sched I/J must be close. Did you have to document contingent expenses as to what they are? The Food/Clothing/Recreation/Personal Necessities exceeds the B22C max allowance of $507, so that would likely gather an objection here. Also in many cases they make you defer the student loans. I got objections to my recreation expense because I was not paying enough into the plan (24% to unsecured) eventhough the amount B22C calculated and Sched. J matched.

It's been a roller coaster ride for sure. Hopefully, my plan will get confirmed this month. I won't rest easy until then. Hopefully SE VA is different and you'll breeze through it. I'll be interested to see how it turns out.

[sassiebaz]

Let me clarify...we don't have a "zero" payback. But, none of our creditors are getting anything. Our payments are $72 a month and that goes to the trustee and our attorney's fee's. Again, we had to do a ch13 as we did a ch7 nearly 6 years ago. Never ever thought we'd be in this situation again, but our debt load is 3 times what it was back then. Im thinking we'll learn this time!!!! It feels good to only buy when the cash is in the bank, ya know?

[zeezee]

Honestly, I would prepare myself for objections and a higher payout unless you are paying a substantial % to unsecured in your plan. I am a single filer too, but in GA. From what I gather here, they use Sched J as well, but the figures on B22C and Sched I/J must be close. Did you have to document contingent expenses as to what they are? The Food/Clothing/Recreation/Personal Necessities exceeds the B22C max allowance of $507, so that would likely gather an objection here. Also in many cases they make you defer the student loans. I got objections to my recreation expense because I was not paying enough into the plan (24% to unsecured) eventhough the amount B22C calculated and Sched. J matched.

It's been a roller coaster ride for sure. Hopefully, my plan will get confirmed this month. I won't rest easy until then. Hopefully SE VA is different and you'll breeze through it. I'll be interested to see how it turns out.

Yeah, I have receipts for everything but I spend on but those were my attorneys numbers that were put in the plan. So I'm thinking that he sees no problem in getting it confirmed. Also, I am paying my school loans outside of the plan even though the total cost is included in my unsecureds. My total payback works out to a little over 60% taking away $33k for school loans. To me, the total proposed payback will work out to $91k (plus fees) and then the $33k SL's, I feel like I'm paying back 100%!
We'll see, my attorney feels confident...I have my fingers crossed.

[indebt00]

I have made 3 payments, about to make my fourth. I haven't talked to my attorney in over a month. Other than to call and tell them I was surrendering vehicle, blah blah blah. I have never been contacted by the trustee. I haven't had any questions arise about our plan. Now, I am not suggesting that none of that couldn't happen down the road. BUt, so far so good. Our situation was a little easier than most. We only did a 13 as we filed a 7 in 2003. Income wise, we qualified for a seven and still may convert in two years. I feel ch13 is the "lesser of two evils" so to speak. I'd much rather deal with my lawyer and the trustee than our nasty creditors...ANYDAY!

Sassie....is your trustee's initials RB....there are only 2 in Maricopa County and we got RB....just curious...