Saving Money while in Chapter 13

[aa06a47]

I realize there isn't much opportunity to save much money in a Chapter 13, but it is possible if things go right (utility bills are lower than average...you drop the cable tv...ect).

Lets say you save $1000 in 6 months, would it be better to have the money permetically sealed in a funk and wagonel jar buried under the porch...or would it be better in a savings account? I know the trustee can see it if it is in a bank account.

Thought or experience please.

Thanks

[13inOR]

As I have said before, we kept ours in the bank and for a time there was nearly 2k in there, we never had any troubles. But on the other hand, we were a 100% plan, so they didnt ever have much reason to pick on us.

[aa06a47]

As I have said before, we kept ours in the bank and for a time there was nearly 2k in there, we never had any troubles. But on the other hand, we were a 100% plan, so they didnt ever have much reason to pick on us.

Yes, you are probably correct, on 100% paybacks, why would they bother even looking.

I prefer the bank account, at least the money is safe (maybe not safe from the trustee???). The pickle jar isn't much of a security, especially when anything can happen to your house, blowed away by a tornado, fire, theft, ect.

Right now I feel naked. Nothing to fall back on. I never had anything except credit cards, but at least that was something to fall back on. I would like to do whatever sacrifice I need to make in the next 12 month period to get about 1200 in the bank. I can get about 1K of that from cancelling my cable tv. The other 200, don't know yet. Of course, right now, cable tv is my entertainment

What I don't want, is to do all the sacrifice, save the 1200 bucks and then have the trustee take it.

[jane taylor]

We are in the same boat unfortunately. No savings, no retirement, no CC, but we are managing to save a little bit. Our plan hasn't been confirmed--deadline is June 5, 2006. It's supposed to be a 0% to unsecured creditors, but we'll see. No way am I going to have a savings account. I'll just pinch the pennies and take my chances at stashing it away somewhere.

This is so hard and scary! I wouldn't wish it on my worst enemy even if I had one.

jane

[SinkingFast]

Safety deposit box??!!

Not the pickle jar at home, and not insured, but much safer than stashing cash in your mattress. And not traceable by the Trustee like a new savings acct could be.

Lots of people have a small safety deposit box to keep their important docs in anyway. So it wouldn't be out of the way for anyone to take out a safety deposit box. Take in your deed, your life insurance, all those papers the attnys had us collect together, and your pickle jar savings.

[13inOR]

The safe deposit box is a fine idea.
But, really, if you think about it, a chapter 13 debtor is only required to report windfalls of OVER $2500. Our
attorney said, and the NOLO book I read also said, that amounts less than that you are NOT required to report. So really, if you are able to skim a little here and there and accumulate it in the bank, as long as its UNDER 2500, I honestly dont think they would or could take it.
To tell you the truth, our attorney also said that the trustee is only concerned with the following:
1. regular payments to him
2. tax refunds
3. windfalls over $2500 and wage increases over 10%
She said what you do with whats left over is up to you.

[aa06a47]

The safe deposit box is a fine idea.
But, really, if you think about it, a chapter 13 debtor is only required to report windfalls of OVER $2500. Our
attorney said, and the NOLO book I read also said, that amounts less than that you are NOT required to report. So really, if you are able to skim a little here and there and accumulate it in the bank, as long as its UNDER 2500, I honestly dont think they would or could take it.
To tell you the truth, our attorney also said that the trustee is only concerned with the following:
1. regular payments to him
2. tax refunds
3. windfalls over $2500 and wage increases over 10%
She said what you do with whats left over is up to you.

What is the NOLO book? Can you provide a web address to order it? THanks,

What do they define as a "windfall"? I had not heard about the 2500 limit on reporting. Is that $2500/occurance or $2500/year?

[jane taylor]

Great ideas! Unfortunately today we have a very sick car!! Am trying very hard not to stress out over this. I told the guy our situation and he was very sympathetic--he had to file BK two years ago for medical bills! He talked to his manager and they knocked the price down a little to help us out.

This just really sucks!

[SinkingFast]

What is the NOLO book? Can you provide a web address to order it? THanks,

What do they define as a "windfall"? I had not heard about the 2500 limit on reporting. Is that $2500/occurance or $2500/year?

http://www.nolo.com

There's a whole section there devoted to BK.

http://www.nolo.com/resource.cfm/cat...51A79/213/161/

There's books for sale there. One is specifically written for Ch 13.

Just adding that I just learned both the Ch 7 and Ch 13 books are currently out of stock.

[anonymuse]

The Nolo Chapter 7 & 13 books are technically not "out of stock"--they have not yet been updated with the new laws.

The last time I asked (and the information keeps changing) the Ch7 book will be available mid May and the Ch13 book will not be available until early November.

I did get the previous versions of those books on eBay's half.com. I think I spent less than $10 for the two of them. Although the law is out-of-date, the information on filling out the forms is extremely thorough.

The book "The New Bankruptcy: Will it work for you?" is up-to-date and extremely informative. It's available as a paperback and as an ebook. Very good investment for under $20. To see if it fits your style, you can read the first chapter online at nolo.com

About where to keep your money, be careful having the cash on hand in case you're tempted to splurge. (Unless you want to freeze it in a block of ice and have to wait until it thaws to use it. )

[aa06a47]

About where to keep your money, be careful having the cash on hand in case you're tempted to splurge. (Unless you want to freeze it in a block of ice and have to wait until it thaws to use it. )

That is exactly the advice given in this program I purchased...."turning debt into wealth". They say if you must have a credit card, freeze it in a block of ice and when you want to use it, more than likely, by the time it takes the block of ice to thaw out, the impulse for the impulse purchase you were about to make with it will be gone. ( I BK'd my invoice on those dudes, the course obviously didn't work. )

Actually good advice, but since I'm a chapter 13 case, I won't have a credit card to worry about using the next 5 years.