Ch. 13 stress...watch out I'm in an awful mood!

[WhenThePawn]

Well, first let me start by saying I know I don't post often, but I read this forum daily. It has been a great source of information to me for quite some time.

I'm having an awful day and just really need to vent, bounce some ideas around, get some opinions, and get some overall general support from people who understand what BK can be like.

My husband and I are 19 months into a 36 month ch 13 plan. These months have been filled with a lot of stress and worry. A lot of times I feel like I'm haning on (barely!) by a thread and don't know how I'm going to handle another 17 months of this. My husband feels the same way.

Our monthly payments are quite high because we make a decent amount of money between the both of us and also have a heck of a lot of debt. I feel like if one thing rocks the boat we'll just sink and lose it all...our house, our possessions, our dignity. To add to the general stress and fear of BK, my job has become pretty unstable lately (3 great people got laid off today). Now I'm worrying about trying to find a new job (and quite honestly, not looking forward to facing another payroll department and letting them know my personal business and garnishment amount). I'm also worrying about possibly getting laid off before I can even find another job.

So a lot has been swirling around my brain, as you can imagine. I probably sound like I am freaking out and jumping the gun and well...I kind of am. Writing this out and getting responses will help me calm down and work through this, so please bear with me. What if I lose my job before the ch. 13 is over? Is it typical to work out some sort of postponement of the full payment amount until I find a new job? If so, what is an acceptable period to postpone for? Or, does everything slide downhill quickly and convert to ch 7? My biggest fear is losing my home. If ch. 7 happens, do we lose our home automatically even if we are current on all payments? If I get a new job is it a MUST that the trustee's office garnish my check like they do now, or can I somehow work out that I will send that portion of the money on my own?

Are there any upsides to taking out a loan to pay off a BK? The only thing I can think of is being out from under the trustee, but doesn't the trustee and bk also offer some sort of "protection," so to speak? I've been getting a ton of those "pay off your ch 13 with a home loan blah blah blah" things in the mail and they are beginning to tempt me, which is a little scary. But even if I did decide I wanted to pursue this idea of pay off, I know my credit is in shambles. Wouldn't it be really hard to get a huge loan for this purpose?

I've read some mixed answers about rules for paying out of ch 13. Some things I've read say that if you are only paying a percentage of all debt (which we are), if you try to get out before your time is up you'll end up having to pay 100%. Is this an absolute certainty? Is it unheard of for trustrees to allow someone to pay off debt at the percentage rate before 3 years is up?

Tomorrow I'll call my lawyer and find out about my payoff amount, paying off before 3 years, protocol if I become temporarily unemployed...and maybe anything else if I can think of it.

Your opinions on anything I posted would be much appreciated. I don't know what to do. I can't stop thinking about this...I'm a constant ball of nerves and fear. I never expected bk to be easy, but this possible job loss is pushing me over the edge. That three year mark til bk is over is so close, yet so far.

Thanks for listening.

[aa06a47]

There is what they call a hardship discharge. If you lose your job, you can apply for that. If you have already paid to the trustee what they would have gotten in a Chapter 7, your eligible to apply but not guaranteed to get it. To tell if you qualify to apply for a hardship discharge, you can look at your original exemptions and see how much non-exempt property you took into the chapter 13. Plus, you will need to prove circumstances beyond your control. Job layoff to me anyway sounds like a good excuse (as long as you don't quit your job)

But, at this time, your still employeed, so you need to hang tough. Has any expenses went up that you can modify your plan to lower the payments. If, for example, your health insurance out of pocket expenses went up, you should be able to modify your plan. From your flustration, sounds as if you have been living hanging on by your finger nails since the plan started.

Technically, chapter 13 shouldn't mean you have to live like a pauper to survive it. Many do live this way because there attorneys played it safe and didn't want to challenge the trustee. See your attorney about a possible plan modification.

[aa06a47]

As far as paying off prior to three years, my attorney said if I wanted to pay off before 3 years, I would absolutly have to pay back 100%. Early payback is probably not an option for you.

As far as borrowing money against your equity to pay off a chapter 13...here is my opinion. You have unsecured debt your paying off. Your paying that unsecured debt at zero percent interest (or 100%, it doesn't matter, the payment is the payment and after 36 months, the balance is zero). Why would you trade a dischargable debt for one that cannot be discharged? And on top of that, your probably going to be paying a high percentage rate. You were correct, the credit is shot right now. It will get better though.

[Minnymouth]

Since you are in a Chapter 13 and over half-way thru you DO NOT want to go for a buy-out.............. will change your percentage to 100% payback....
would be devasating in your case...............

Borrowing would be a mistake (more interest to pay) and would cost you 100% payback on all debts..... would not solve the problem..... would create more!!

Extremely hard to borrow money during bankruptcy.... have to have the approval of the trustee, and the equity to do it with....... (You don't want to use your equity, to pay back debts that will be paid in full in 15 months)... you may need that equity later on......

Just hang in there...........

Talk to your attorney, check all your expense (see if they have gone up)... tell attorney about circumstances, try to get your plan modified so your not struggling............. (they are aware of rising gas prices, etc......)

Check out your options with your attorney, then post back to us......

Stay, cool, calm, and relax....... bankruptcy is frustrating, especially the Chapter 13 kind, you just gotta roll with the punches and look for the light at the end of the tunnel....

Vent with us whenever you like....... we've been there also........

Just think, when month 36 comes - IT'S ALL OVER BUT THE CHEERING!!!! AND YOU WILL HAVE ACCOMPLISHED YOUR GOAL.................

Minny

[WhenThePawn]

I know pay off is bad for a case like mine, that's why seeing these tempting offers is scaring me. Thank you both for confirming my suspiscions and talking me down.

I was freaking out last night (obviously!) and still am, but I know I need to calm down and take things as they come. I'm at work feeling ho hum and wanting to cry and I shouldn't even really be posting. I just wanted to hop on and say thank you for listening to me vent and for giving me some comfort.

My hubby will call the lawyer this afternoon. Even if just to get a few general "what if" questions answered. I'm such a control freak so knowing options to things before I even encounter them(if at all) helps me deal a little better. I'll keep y'all posted.

Thank you again for the support!

[jane taylor]

I can so relate to everything you are saying!!! We are just 3 months into our 13, my job's funding may or may not play out, husband is having major surgery the end of the summer, I have a teenaged boy with ADHD, and I have fibromyalgia!!! Still, I manage to work full time, teach a class or two at night and make it to church and other activities. I only survive by trying to put all of this in God's hands. I figure He's big enough to handle everything. Some days I get so stressed out and tired that I want to cry. I am so glad I have this "forum family."

We will all make it!! Hang in there and God bless---

jane

[Jman30]

I feel everyone's pain on this board, especially us folks in a Chapter 13. I am 18 months into a 48 month Chapter 13. I plan to do a buy out after month 36 so really, I am exactly halfway through.

These last 18 months have been the hardest of my life. We found out my wife was pregnant a month before we filed so we have an extra mouth to feed. Daycare is so expensive for two kids that my wife went from full time to part time, so we lost her full time income. We modified the plan as low as we can go. Our attorney says there is not anything left to take into consideration when modifying.

Still, we struggle. There are times when I am willing to pay out now and get a loan for whatever ungodly rate, take out the equity in my home and pay back the 100% just to be done with all this. But I have to step back, relax...think how good things will be at 36 months when I am debt free, still have the equity in my house and have the pride and satisfaction of knowing that both myself personally and my marriage, were strong enough to make it through.

Jut hang in there. Some months are better than others...but each month is one month closer to that magic number of 36.

[WhenThePawn]

You're all so insightful. Thank you thank you thank you! You make me feel better. "One day at a time" needs to be tattooed on my forehead.

My hubby called the trustee's office directly to ask about our pay off amount (yes, it will be 100% if we take that route). There's a $15,000 difference between the 100% price and the price we will have paid after 36 months. It's nice to know this info even if I won't do anything with it...right now anyway.

I'm still anxious (and will be until this is over), but I'm not completely panicked and looking for any solution to get out now now now Thanks again.

[bkbiker]

I also can identify and feel your anxiety, frustrations, and moments of panic, 55 months into my plan now, first year was hard, next 3 years went by pretty fast with-out any problems, final year has just been a nightmare for me, but I am and will do everything possible to receive my proper and legal discharge. When the time is right I am planning on venting via the US mail to the appropriate people whom have misled, lied and neglected me and my case.

Hang in there,
Sending you many warm thoughts of health, happiness and prosperity,

bkbiker

[Jman30]

I also can identify and feel your anxiety, frustrations, and moments of panic, 55 months into my plan now, first year was hard, next 3 years went by pretty fast with-out any problems, final year has just been a nightmare for me, but I am and will do everything possible to receive my proper and legal discharge. When the time is right I am planning on venting via the US mail to the appropriate people whom have misled, lied and neglected me and my case.

Hang in there,
Sending you many warm thoughts of health, happiness and prosperity,

bkbiker

bkbiker, you in a 60 month plan?