help surviving 5 year ch 13

[Flamingo]

we have cut back everything, we have no cable, just basic. Our cell phone bill is low, it is our only phone and its less than $200 a month for myself , my husband and my son.
I think my attorney did not do her job properly. My best friend is a paralegal in a bankruptcy office and said it sounds like we got screwed. Anytime I have contacted my attorney with questions after the filing she gets annoyed with me...
And it looks like alot of money was going to the attorney in the beginning of the bk. The creditors are getting basically nothing...

See highlighted sentence above. That is totally normal. The attorney gets paid first along with any priority creditors, then secured then unsecured. The unsecured get paid when the others receive the amount due them as confirmed in your plan. Sometimes it takes a while before the unsecureds start to get paid.

It sounds to me that you are having a hard time adjusting to the lifestyle changes that need to be made to make it successfully through a Chapter 13. Cutting to the bare bone is necessary to make it through; not eating out or eating out less, buying discount, buying bulk, clipping coupons, all that good stuff you probably did not do prior to this time. It's hard and an eye opener but the reward comes in the end when it is all done. Most Chapter 13s fail due to the debtors not being able to change their lifestyle to get through a Chapter 13. It's not the plan (a plan will not be confirmed if the trustee thinks the parties cannot complete it successfuly).

[Flamingo]

even if trustee approves a car loan, who gives you a loan with a open bankruptcy?

Do you have any former paid off, paid on time car loans with, say, GMAC, Ford Credit, etc.? If so, that works to your benefit. Go to one of those dealerships (make sure you have trustee approval first) and ask for the finance manager and explain your situation. They are used to working with people in Chapter 13 and your former good credit as to a former car loan works for you. It worked for us and we were told why - because of our former paid off and paid on time car loan with the same lender (GMAC). We were still in Active Chapter 13 and got a brand new car at their advertised specials for good credit - 0% financing. We couldn't believe it but we are living proof it can be done - a lot depends on your credit prior to filing and how diligent you are in paying your Chapter 13 payments and other bills during your plan.

[bell22]

Improvisation is key in your situation.

My advice is to analyze what your current income is, based on a 6 month look back that is properly calculated into a monthly figure, to which you then multiply by 12.

Then you head to here,

http://www.justice.gov/ust/eo/bapcpa/20100315/bci_data/median_income_table.htm

Make sure you take a close look at the family size of 3, speaking hypothetically that you continue on with your plans of fulfilling yourself on this earth by procreating.

Are you still over the median income? Is so, skip the next paragraph.

Below median income level? Good for you, because when the child is born, you could then convert to a Chapter 7. Don't feel bad, the government will thank you later when your baby grows up to be a taxpayer, believe me, they will need a lot of them with all this spending they have been doing with China's money, the least they can do is give you a timely discharge, but I digress.


I would also start lowering your expectations, you are in a open Chapter 13 with 0% to your creditors, no one said it would be easy. Unfortunately when Congress made these changes to the BK laws to push people into Chapter 13's, they never thought how open bankruptcies that last five years could make it hard for someone to function.

I would not rent from major car rental companies and instead find a smaller, local store, yeah they aint gonna have some spiffy rental, but hey, its a rental.

Next, can anyone straw buy a car for you? Meaning, they sign for the loan, but you pay them, they simply add you as a rider on the insurance. Family would be the best option here.

If they cant, then when you try and go buy a car, don't go to the dealership, go to the smaller buy here pay here corner lots. Yes, they probably will rip you off like most dealerships, but your credit is trashed, what do you expect?

Try drivetime.com, I called their corporate office to ask them the policy for open Chapter 13's, they said they will approve it after the judge allows you to take on the new loan.



Worst case scenario,

Figure out how to get by and make it another three years to get your discharge.

thanks for your advice! I guess I need to get over it and start trying to be more positive. Your post made me feel better!

[bell22]

See highlighted sentence above. That is totally normal. The attorney gets paid first along with any priority creditors, then secured then unsecured. The unsecured get paid when the others receive the amount due them as confirmed in your plan. Sometimes it takes a while before the unsecureds start to get paid.

It sounds to me that you are having a hard time adjusting to the lifestyle changes that need to be made to make it successfully through a Chapter 13. Cutting to the bare bone is necessary to make it through; not eating out or eating out less, buying discount, buying bulk, clipping coupons, all that good stuff you probably did not do prior to this time. It's hard and an eye opener but the reward comes in the end when it is all done. Most Chapter 13s fail due to the debtors not being able to change their lifestyle to get through a Chapter 13. It's not the plan (a plan will not be confirmed if the trustee thinks the parties cannot complete it successfuly).

were you able to get out of your 5 year early?

[MOMof3]

Are you telling the rental car companys you are in a chapter 13? I have never had anyone ask and I've never had a hold put on my debit card when we've travelled but I've always used Expedia/Orbits to book it, so maybe that is why? Not sure? As for the car loan, we found a dealership willing to work with us. We had the motion from the court to assume the new debt. The financing was was horrible 29.5% and we opted to borrow money from a family member instead, BUT, I still have the approval document and it was "washingtonautocredit.com" which based on the name, appears to be local, but you could check it out!

As for the paycheck to paycheck living--definitely do that here too! It really sucks, but I do manage ok and feel like at this point I'm nearing the end of the road. Try to stay positive. If you aren't trying to save a house (that's why we did 13--and also because of our income), then I would maybe push to convert to a 7 if you can.

[netweaver]

Are you telling the rental car companys you are in a chapter 13? I have never had anyone ask and I've never had a hold put on my debit card when we've travelled but I've always used Expedia/Orbits to book it, so maybe that is why? Not sure? As for the car loan, we found a dealership willing to work with us. We had the motion from the court to assume the new debt. The financing was was horrible 29.5% and we opted to borrow money from a family member instead, BUT, I still have the approval document and it was "washingtonautocredit.com" which based on the name, appears to be local, but you could check it out!

As for the paycheck to paycheck living--definitely do that here too! It really sucks, but I do manage ok and feel like at this point I'm nearing the end of the road. Try to stay positive. If you aren't trying to save a house (that's why we did 13--and also because of our income), then I would maybe push to convert to a 7 if you can.

Car Rentals - I had the same experience. We live close to the airport in our city and tried to rent from 2 different agencies: Hertz and Budget - got the same result. I actually called the Budget location and was told that they will rent to me, but when the agent was finalizing the rental, he got a popup on the screen telling him not to rent to me. I was caught by surprise on this -- I had no idea that they would do a credit check for a car rental!

They run a credit check automatically when you don't use a credit card. From what I understand, you should avoid the rental agencies at the airport locations. I was also told that if you are renting in the town you live in, they have more rigid requirements because they figure you have credit issues if you have to rent a car and don't have a credit card.

The good news is that I found an Enterprise location away from the airport that took our reservation using a debit card with no problems. Give that a try. Ugly Duckling Car Rental (they may have changed their company name) is another one that I heard will take debit cards without credit checks.

For purchasing a vehicle, you can find "on the lot" financing everywhere. Do a google search for your area. You have to be careful, because you will usually be limited to higher-mileage vehicles. Also, you have to make your payments on time because the rope is a lot shorter on these types of loans.

[jkb]

to MOMof3, who did you get a car loan from? When I went looking everyone said that because of "open" status of bankruptcy we would not be given any credit, period. As for renting a car, I have called enterprise, hertz and budget who all say I can use my debit card with a $500 hold and a credit check?! They said I needed a score of 560 or higher. So I guess thats out! If you have had 2 more children I guess you guys do well for yourselves We live paycheck to paycheck at this point. We had to do ch 13 because my husband lost his job and we could not keep up with bills. We do not own a home, never have. We were just married, and looking to start our life (having a baby, buying a home) when he lost his job. He works again, but the income is not great.... and it is our combined income that it is based on. thanks for your post

We are 2 yrs into our 5 yrs and have rented cars several times through Enterprise using our debit card. Never have we been charged anything more than before we filed - no security deposits, etc. Not sure why they have told you this.

[netweaver]

We are 2 yrs into our 5 yrs and have rented cars several times through Enterprise using our debit card. Never have we been charged anything more than before we filed - no security deposits, etc. Not sure why they have told you this.

Again, it varies by rental agency. If you try to rent from an airport-based agency, more than likely they will do a credit check. It is the norm to put a $200 (or more) hold on your funds. Last year at this time, I was renting cars with a debit card without any issues...but that was before I filed a Ch. 13.

More recently (June 2010), I was refused at 2 airport agencies, but had no problems with Enterprise using a debit card at a non-airport location. I think they did a hold but I don't remember the amount (wasn't more than $200). This was in Charlotte, NC.

[sassiebaz]

I realize it's a tough situation. I understand paycheck to paycheck! What I worry about is if you are barely making it now, how will you afford a car payment? With an open BK and a high interest rate, you could be paying close to $400/mo for a car.