Positive Chapter 13 Stories?

[Lissy]

One piece of advice andysmom. When I got my draft petition in the mail from my atty, the proposed monthly payment was $1200. I couldn't believe that! There is no way I could cut my expenses enough to comfortably cover a payment that high and I was completely freaked out. The standard letter told me to review my schedules to ensure my income and expenses were all there and all of my creditors were listed. On the surface, everything looked good, it was all there except for 2 creditors, which I added. But that didn't make a difference to my payment amount.

So I started checking the math because I couldn't understand where that high number came from. I quickly realized that my atty (or more likely his paralegal) had understated the amount of payroll taxes deducted from my paychecks, to the tune of almost $400 per month! By the time I gave the draft back to him, it had colored flags and highlighted pages galore. LOL! So check everything they give you to make sure it's accurate.

[andysmom]

Well,
I just got a call back from our lawyer & he said we're under the median income by $503 and our disposable income shows a slight negative, so I guess this is good news- but with me, I won't believe it til it's done.
He's going to file it a chapter 7 ; I have to stop up tomorrow to pick up a packet of everything I need to get for him and the info on how to do the pre credit counseling.
He was really fast; I just dropped the stuff off he needed yesterday late afternoon & he called about an hour ago. He said not to worry that he wouldn't even consider this a boderline case / he seems to think that there won't be a problem.

[oops123]

CONGRATS ANDY'S MOM! and thanks everyone for your uplifting stories... I am a week away from confirmation and still a nervous wreck.

[andysmom]

I wish you the very best oops123.
I somehow think we will still end up as a chapter 13, too. It's in my nature to think this way; plus $500 isn't alot to be under by so.... I still do believe anything can happen and as long as we don't end up with a huge monthly payment it'll have to be okay.
I just can't wait til it's all done.

[Amadan]

Good for you! I was so hoping for a call today. When I got home there was an email, but they were asking for more information from me and some clarifications on my asset inventory. No word on the plan, although for sure it will be 13, I am just hoping its not a "destined to fail" amount.

[momofthree]

Congrats Andysmom! Keep us posted on your bk journey.

[andysmom]

Yeah, unfortunately the good news didn't last long- one of my husband's gain share checks wasn't included in the calculation so now we're about $400 over & have to have the means test done.
I'm seriously going to end up with a ulcer- probably by the end of the week.

[cjsgac]

Hi Andysmom and everyone else.....We are getting ready to file Chapter 13 and have our 2 hour meeting with our attorney tomorrow. I already feel a tremendous burden being lifted as March was the first month in my entire life where I havent paid the credit cards or 2nd mortgage. Our debt is about $116000 and we are keeping our house and 2 cars. I did cry a lot initially, but luckily I found this forum and it's nice to know I am not alone and that we can all help each other get through this tough time. Hopefully our payment will be reasonable and we will be able to manage it. Good luck to you.

[andysmom]

Hi cjsgac.

I completely understand what you're going through; we're in the same boat. I am so scared that if it is a chapter 13 now that we won't be able to afford whatever they figure the payment at. We're just at $400 over the median income and now waiting to see if we're going to qualify for a chapter 7 or if it's a 13/ I'm pretty sure we'll be a chapter 13 and I'm just wanting this done.

[MommyMc]

HI!!

We have completed 15 months of our CH.13. We have 4 kids and are doing quite well. 13 was the best thing that has happened to us!! I was scared going in, but learning to BUDGET has really helped. It took us about 4 months to get into the good budget habits. My kids are not deprived... they still play team sports, they go to birthday parties, and we even went on vacation for Christmas. My oldest is playing in a baseball tournament in Omaha Nebraska in June. It's going to be our summer vacation (we live in Texas). We PLAN and BUDGET EVERYTHING!! It's a must to make this work. I know where EVERY PENNEY is spent. The biggest money sucker is fast food! Before the 13 we bought fast food/pizza or eat out 3-4 times a week. Now it's 1-2 times per month. The money savings is incredible!! My kids (ages 1 1/2 to 12) had a hard time at first, but soon accepted it. We pack snacks for ball games instead of purchasing from the concession stand. I bring canned soda instead of running through Sonic for a jumbo Diet Coke. It's amazing how all those 1-2 dollar items really add up for a family of 6! I shop sales, I cut coupons. It works. You have to have the right frame of mind to make it work. If you tell yourself it's going to be hard and misserable, then it will be.
Look at some of my past posts, I've had nothing but good things to say about this. I wish we would have done it sooner.
Good luck to you!! Stay positive and learn to BUDGET!!! You can do it!

[cjsgac]

Hi MommyMc!!

Just read your post and I feel a lot better now. We are about to file Ch 13, have our 2 hr mtg w/attorney tomorrow. Have $116000 in cc debt, keeping cars and mortgage and stripping second.

I read some of your other posts, would you mind explaining how you budget? That's what I am having a hard time with right now...we would always use cc's to fill in the lack of income gap and now I feel unsure about how to budget....Thanks!!!

[MommyMc]

Hi cjsgac!

Learning to budget is just that, a learning process. It took us about 4 months to really get into the swing of things. I am happy to share some of the things I do for our household budget.
First off, accept the fact that you will not have a CC to "fill in the gaps". I did the same thing. You have to work with the money you have, there is no ifs ands or buts about it. Sit down with your monthly household bills, electric, cable, gas, water, cell phone, etc. Is there anything you can change about them? Call your utility companies to find out if there is any specials. I was able to 'bundle' my house phone and internet access into one package, saving me over $30 a month and it includes free long distance. Also, remove things you do not need. Don't pay for texting if you are not using it. Do you really need unlimited minutes on your cell phone? Downsize on your TV channels if you don't use all 500 channels you get with cable. Be honest with yourself, do you NEED these or WANT these things? Also, just by adjusting your daily electric habits can save you money each month on your electric bill. Turn off any lights not needed, unplug things when you are not using them. It may sound silly, but it will save you money and right now EVERY DOLLAR COUNTS!!
I pay all my bills as soon as I get the paycheck. No exceptions, I want nothing to be late! I pay everything online. I bank online. I see my bank statement every day!
I use a small expandafile to save money for all my needs, car repairs, house hold expenses, birthdays, Christmas, kids sports, medical... etc. I put cash in each assigned file, knowing I can not touch it for anything else other then what it is assigned for. That way when the car registration is due I will just pull the money from the car file.
I shop sales and use coupons. There are lots of coupon websites. Coupons can save you a lot of money each month.
Most importantly is knowing your WANTS vs your NEEDS. You can't just go out and do or buy the things you want anymore. You need to say to yourself is this a WANT or a NEED. This is harder on the kids then it is for the adults.
I keep my budget in a binder. It's divided by months. Each month lists out every bill. I know exactly where my money will be going each month.
I then find ways to earn money. I have a garage sale every spring. We save our aluminum cans all year (just crush them and store them in the garage) and then we turn them in in November to help pay for Christmas gifts. I take my kids out grown clothes to second hand stores for cash. I also look for all the 'free' stuff to do in our community. There is a lot out there. Also volunteering is a good way to do fun things for free.
Basically, you need to change the way you think about money. I would never think twice about going to Sonic and getting a $1.79 Coke on my way to pick the kids up from school. But now that seems outragious to me! I bring my own can of Coke along and save over $5 a week! That's over $20 a month! Every $1 counts now.... I'm not kidding!
Good luck to you!!

[Universal]

I wish I had that good attitude and spirit too. Still new at this and it is still hard to accept it all.

[andysmom]

mommymc
thank you so much for your story & advice. I too wish I could be as optimistic as you; I'm panicking every minute of the day & completely on edge just waiting to find out what this will be & how it will turn out. I can't sleep, eat, anything. I can not accept this is where we ended up & it completely terrifies me of what the next 5 years will be.
It's nice to hear that it's working out good for you & I hope the rest of us have similiar outcomes. I hope you post more cause your optimism helps brighten up the looooooong day!

[onthebrink]

mommyc. Thanks for the great advice on budgeting. We are trying to avoid BK and are going to try to do a debt settlement and loan mod. We have started to watch our daily expenses more than ever but there's still room. If I eat out for lunch, I only eat half and then have the other half for dinner. We have significantly reduced our grocery bill by eating mostly vegetables and salads for dinner. We buy a four-pack of veggie burgers and that's four dinners right there. I make a "hamburger salad" - veggie burger, lettuce, tomato, olive oil, balsamic vinegar and some ketchup. About $3 a serving and tasty. I like your idea about setting up a file system. Thanks for sharing!