Not sure what to do

[lsutton1974]

We are in desperate need of filind Chapter 13 and have been for far to long. 4 kids under the age of 12 adn way to many bills. We both make ok money and I am afraid we will have to pay more then we are able to. I did a worksheet I got about expenses and it doesn't seem they give you very much to spend on things, like haircuts, school expenses. And it's hard to figure medical, with 4 kids it is different every month. We have a lawsuit currently pending so this is something we need to do. Also we received our tax refund and have spent this, will that be included in our income? Any help would be appreciated.

[SinkingFast]

You need to start here:

http://www.usdoj.gov/ust/

In the box under Bankruptcy Reform.

You can run the Means Test to see how you'll come out on disposable income. You can also learn lots of other information there.

You should first call several attnys and schedule appointments for Consultations. Consults are free and you'll learn a lot of useful info from each visit.

If you are looking to receive money from a law suit, you might want to get that resolved before filing BK. If you get a Ch 13, any windfall you get while you're in the plan will be taken by the Trustee. If you get a 7, the Trustee can take any windfall you get for 180 days after your BK is closed.

On Medical, the first time we went to Consult with an attny, I had put down $75/mo. That was our deductible, one doctor's visit copay/month, and my script meds copay/month. After that, I remembered we'd had 2 eye doctor's visits with copays and $$$ that insurance didn't cover, oral surgery with out of pocket there, an emergency room visit with out of pocket there, everybody got flu shots so that was $75 there, etc, etc, etc. Next thing I knew, we were up to $200/month and we are basically healthy people. As long as you can justify it, and back it up, add it all up and take an average.

Haircuts, school expenses, etc. get added on by the attny in different categories. You just list your expenses and what you spend, the attny will take care of where to put them. And don't be a scrooge on your expenses. If you spend $75/month on haircuts then say so. If you spend $1000/month on groceries, say so. Your attny will also adjust your expenses according to what the Court is used to seeing. Your attny won't let you claim too much in one area and possibly too little in another area. Good attnys know people with little kids spend less than people who have teenagers in high school that drive cars.

One of the attnys we visited with had a note in his packet about tax refunds from the US Trustee. It's that time of the year and the US Trustee wanted all BK practitioners to inform their clients/BK filers that their tax refund checks would belong to the Court. If you wait later in the year, then you might have to give some portion of your tax refund to the Trustee next year.

Hope this all helps.

[Fedler]

A Chapter 13 bankruptcy gets rid of debt not bills.

You'll have to pay what the trustee thinks you're able to, not what you think you're able to. Not all your current expenses may be allowed. That's the point of a Chapter 13. You get put on a budget, and you pay the rest toward your debt.

No, you don't get to spend much on haircuts. They're not that important. You have to go cheap.

What kind of school expenses are you talking about? You can buy things like notebooks and pens.

You figure medical expenses by looking at the last 12 months, total the amount spent, and divide by 12. That's your monthly allowance. Unless your kids are erratically accident prone, I don't see a problem.

You have a lawsuit pending? Are you suing someone for something? If so, what? Is someone suing you for something? If so, what? "Lawsuit" is pretty darn vague.

Fix your tax refund issue by adjusting your withholdings so you get more in your paycheck. If you're getting a refund, you're not filling out your W-2's correctly.

[edwards2]

Fedler - on the tax refund some people WANT to get that check at the end of the year. We figured the difference during the year would not be as substantial TO US as getting a refund. We claim all we can on my husbands and on my W2 since I work part time if I zeroed out I would barely get a paycheck so it depends on your circumstances. I agree about consulting an attorney. Let him give you advice on what is allowable and how to proceed. We had thousands of dollars in medical bills from a medical catastrophe so the medical issue was a moot point for us. On the school expenses our son goes to a private school so we had major expenses for tuition. It is however, an expense you better be prepared to defend. Fortunately, we were able to do so. I also would like to know more about the lawsuit. I am confused about how much $ you are talking about and who is suing whom and for what?

[FilingOnMyOwn]

Either way, you are going to need to make some serious lifestyle changes. You have to evaluate every single penny you spend, from the ground up, inside and out. Then if you do file, you would still be wanting to claim near the maximum of what is allowable of course. But try not to spend that much, and even less as much as you can. Become a do-it-yourself family where everyone helps each other out, without spending money outside of the home on a day to day basis.

PS: Now is also the time to train your kids this way. Their really expensive years are coming soon, so now is the time to train them how to live frugally, not only for your own pocketbook, but for themselves once they are on their own.

[lsutton1974]

We are in desperate need of filind Chapter 13 and have been for far to long. 4 kids under the age of 12 adn way to many bills. We both make ok money and I am afraid we will have to pay more then we are able to. I did a worksheet I got about expenses and it doesn't seem they give you very much to spend on things, like haircuts, school expenses. And it's hard to figure medical, with 4 kids it is different every month. We have a lawsuit currently pending so this is something we need to do. Also we received our tax refund and have spent this, will that be included in our income? Any help would be appreciated.

Thanks so much for all the information. The lawsuit is against me from an old landlord from almost 3 years ago. We don't go to trial until the end of August so I wanted to start investigating this. We planned on filing anyway we got way over our heads. When talking of school supplies we are talking about general supplies, also clothing, sports, etc.

[lsutton1974]

Fedler - on the tax refund some people WANT to get that check at the end of the year. We figured the difference during the year would not be as substantial TO US as getting a refund. We claim all we can on my husbands and on my W2 since I work part time if I zeroed out I would barely get a paycheck so it depends on your circumstances. I agree about consulting an attorney. Let him give you advice on what is allowable and how to proceed. We had thousands of dollars in medical bills from a medical catastrophe so the medical issue was a moot point for us. On the school expenses our son goes to a private school so we had major expenses for tuition. It is however, an expense you better be prepared to defend. Fortunately, we were able to do so. I also would like to know more about the lawsuit. I am confused about how much $ you are talking about and who is suing whom and for what?

I have a son with a bone disorder and a daughter who is a severe asthmatic so medical varies, if he happens to break a bone of course expenses soar, the same with an asthma flare up. Luckily we haven't had to deal with a break in over a year and the my daughter has only been hospitalized once in the last 3 months. The lawsuit if for over $10,000 against us from an old landlord. Stupid to move but we felt like it was time to go. Guess it has come back to bite us. We need to file anyway our finances are a wreck.

[lsutton1974]

You need to start here:

http://www.usdoj.gov/ust/

In the box under Bankruptcy Reform.

You can run the Means Test to see how you'll come out on disposable income. You can also learn lots of other information there.

You should first call several attnys and schedule appointments for Consultations. Consults are free and you'll learn a lot of useful info from each visit.

If you are looking to receive money from a law suit, you might want to get that resolved before filing BK. If you get a Ch 13, any windfall you get while you're in the plan will be taken by the Trustee. If you get a 7, the Trustee can take any windfall you get for 180 days after your BK is closed.

On Medical, the first time we went to Consult with an attny, I had put down $75/mo. That was our deductible, one doctor's visit copay/month, and my script meds copay/month. After that, I remembered we'd had 2 eye doctor's visits with copays and $$$ that insurance didn't cover, oral surgery with out of pocket there, an emergency room visit with out of pocket there, everybody got flu shots so that was $75 there, etc, etc, etc. Next thing I knew, we were up to $200/month and we are basically healthy people. As long as you can justify it, and back it up, add it all up and take an average.

Haircuts, school expenses, etc. get added on by the attny in different categories. You just list your expenses and what you spend, the attny will take care of where to put them. And don't be a scrooge on your expenses. If you spend $75/month on haircuts then say so. If you spend $1000/month on groceries, say so. Your attny will also adjust your expenses according to what the Court is used to seeing. Your attny won't let you claim too much in one area and possibly too little in another area. Good attnys know people with little kids spend less than people who have teenagers in high school that drive cars.

One of the attnys we visited with had a note in his packet about tax refunds from the US Trustee. It's that time of the year and the US Trustee wanted all BK practitioners to inform their clients/BK filers that their tax refund checks would belong to the Court. If you wait later in the year, then you might have to give some portion of your tax refund to the Trustee next year.

Hope this all helps.

Thank you so much this is wonderful information. Exactly what I was looking for.

[Anj]

We have 3 kiddos 7 and under - so not quite as busy as you... LOL
BUT - we were given a very generous budget and "so far" we've been doing well with it. HOWEVER, we are only on month 2 of 48... So, a long road ahead of us.

Just wanted to encourage you and let you know that be realistic with your budget - if you get something wrong, I'd rather it be too high...

A

[StaciMM]

#1 Chapter 13's can be adjusted for life's unexpected surprises. If things come up, you can get in touch with your attorney regarding amending your payment plan.

#2 The apartment complex bill/lawsuit will be treated like any other unsecured debt in the plan. Try not to worry about it!

#3 For the next few weeks, track EVERYTHING you spend. Get an idea of where your money is going. This will do 2 things for you. It will help you to get a real idea of what you spend in different areas. It will also help you to see if there are any areas where you can cut back. In bankruptcy, you are expected to cut out or cut back on unnecessary things, but you're not expected to live like monks.

Other than that, try to figure out what works best for you regarding managing money. We allot money for grocery shopping, etc. on a weekly basis-since DH gets paid weekly (and my check pays the 'big' things, like rent, car payment, etc.). That might not be good for you, if you get paid monthly.

For the kids in school, sounds like they are at an age where there are lots of activities available to them. Perhaps limit them to 1-2 activities each. That way they'll learn something about commitment, in addition to you saving $$, since they can't drop it and move on to something else so easily. Depending on their age & the activity, find a comromise. My 7 year old came home from school last fall and asked if he could enroll in an afterschool chess club. It was $274 for 1 hour per week, and in addition to the $$ it would have been a problem for us since we cut back to 1 vehicle and I drive it to work during the day. (Kids come home on the school bus.) Instead, we bought a $10 chess set from Walmart, and I taught him - the basics at least - how to play chess. It was something he & I could do together. And, it was the kind of set that has a backgammon board on the back, so Dh taught him to play backgammon.

Edited to add: $274 was not a weekly charge, LOL, it was for 1/2 the school year I believe.

[lsutton1974]

That is what I have been doing

[lsutton1974]

The kids sports aren't to much Daughters are in gymnastics and that is $120 a month and the boys play ball but that is only about $200 a year plus equipment, I have just been thinking off all the little things, lunch money, movies, field trips, things I don't normally think about. Thanks for the advice though, I am just ready to get this moving and am a nervouse wreck.

[Jman30]

The kids sports aren't to much Daughters are in gymnastics and that is $120 a month and the boys play ball but that is only about $200 a year plus equipment, I have just been thinking off all the little things, lunch money, movies, field trips, things I don't normally think about. Thanks for the advice though, I am just ready to get this moving and am a nervouse wreck.

You know, this is really true. Before we filed, my wife and listed all our expenses and I mean ALL of them. I was shocked to see just how we spent each month on the little things - gas, McDonalds, little things for the house like painting and general house maintenance, trips to the pool in the summer, etc.

It really is the little things that add up. They are also the hardest to control because they are easy to justify. "We've been good this week so I'll take the kids to Burger King" or "We've tightened our belt, so we deserve to treat ourselves with XYZ."

[lsutton1974]

Things have taken a huge turn for the worse, I am having major marital problems and possibly divorce. Almost everything is in both of our names, I haven't filed 13 yet, but now I will have no choice. How does this work, two cars, the house, the bills they are all in both our names. This is driving me crazy, money just takes such control.

[jane taylor]

lsutton:

Although I am not in your exact same shoes, I know firsthand how tough this c@#p is on a marriage and family!! Please know that I am thinking about you and that my heart goes out to you!!!

The little things really do add up quickly. I have two teenagers, a husband who is facing major surgery, and my house needs some repairs. It does get to be quite a burden.

I'm really trying to take my own advice to my patients and that is "One day at a time." It is so hard.

Please keep me posted on how you are doing. God bless!!