$2200 / mo payment hurts!

[zeezee]

It truly depends on which District you live. It also depends almost entirely on what's in the Order of Confirmation. I would not refer to the trustee's Website. I would refer to the individual debtor's Order Confirming Chapter 13 Plan in order to know what the requirements are.

In some Districts, you can incur up to $5,000 without permission. In other Districts, you cannot incur a single penny without permission.

I believe the Trustee's warning on the Website is to let you know that once you file, you can't incur a new debt the day after and expect it to be included in the Plan.

That is true. According to my plan I can incur up to $5k without having to get permission. (Of course I will never get credit again unless it's for a car!) And maybe not even then!

[lillymarlene]

I have been in my ch-13 since late 2010, and have not applied for any credit cards. However, according to my attorney small purchases put on account with my business vendors are O.K., that this is just considered "normal business."

[justbroke]

It truly depends on which District you live. It also depends almost entirely on what's in the Order of Confirmation. I would not refer to the trustee's Website. I would refer to the individual debtor's Order Confirming Chapter 13 Plan in order to know what the requirements are.

In some Districts, you can incur up to $5,000 without permission. In other Districts, you cannot incur a single penny without permission.

I believe the Trustee's warning on the Website is to let you know that once you file, you can't incur a new debt the day after and expect it to be included in the Plan.

[patieboy38]

I thought securing credit during a 13 was a huge no no and grounds for dismissal unless u got permission fm trustee! Maybe its just here or i am completely wrong!!!

My trustee's website says the following :
New debt
You should avoid incurring new debt after the filing of the petition. If you must incur a debt after the filing of the petition, you are responsible for repayment and that debt amount cannot, in most instances, be included in your Chapter 13 plan.

Doesn't sound like a hard no.

[berkeleygl]

So, I am almost 1.5 years into my ch13, and I just realized that an old AMEX card that I have had for about 5 years (but had never used) remained opened. I assume it slipped through the cracks since it was never used? Anyway, my question is, since this card is a carryover from pre-BK days, is it still a no-no to touch? I need to rent a car in May and was assuming I could use it (since rental car agencies give debit-users such grief). I of course don't plan to keep a balance on it. Thoughts? Sorry to derail the topic even further...

[159515951]

I have a pretty lenient trustee, but my attorney made it clear that getting a credit card while in a Chapter 13 is a huge no-no.

For me, it's just not worth the risk to have a piece of plastic in my wallet. I don't even want a car loan ever again, much less a revolving card.

[justbroke]

Justbroke, I cannot imagine someone paying over 7000$, but it is possible due to individual circumstances. My payments are close to 3000$ including Mortgage and Car payments. Good luck to all.

It is partially why I converted to a Chapter 7. The amount included my mortgage and arrears and 2 cars. My unsecured creditors hardly received anything (they were not scheduled to receive anything). It was just my individual circumstances.

I am in no way saying that a Chapter 13 can be... trying. I'm saying that the financial benefit of a Chapter 13, almost always FAR exceeds that of complaining about not being able to eat at Morton's once a week, or take a decent vacation every year. It is certainly a lifestyle change and was certainly an eye opener for me! I learned how to live on cash! I used a debit card for travel. I learned to budget. Secretly I wish I could budget today as I did in my Chapter 13; I could save tens of thousands a year!

[paulsk]

Justbroke, I cannot imagine someone paying over 7000$, but it is possible due to individual circumstances. My payments are close to 3000$ including Mortgage and Car payments. Good luck to all.

[justbroke]

Our payment is 1800/mo and we pay our mortgage (1800) outside the BK13. I'd love for Obama to overturn this BK13 crap. I am surprised no one has even talked about it in congress.

A Chapter 13 is a Reorganization of the debtor. There is nothing more powerful when it comes to keeping creditors at bay. It was designed for those that "can afford" to pay "something" to creditors to have the weight of the Bankruptcy court behind them to keep creditors at bay. It has the potential of allowing thousands of dollars, if not millions, to be discharged! People who actually want to Reorganize, do not want Chapter 9, 11, 12 or 13 abolished! It is a highly effective and useful tool.

Maybe there was some sarcasm there. My payment was over $7,000/month.

[LadyInTheRed]

As long as you pay it in full every month you could also claim you did not think you were incurring debt as you always paid in full.
You were incurring debt, but it is a reasonable argument to claim stupidity and plea for mercy.

I wouldn't count on it.

[minan]

$3150 and it's tough but we're half way through.

[andy158]

Our payment is 1800/mo and we pay our mortgage (1800) outside the BK13. I'd love for Obama to overturn this BK13 crap. I am surprised no one has even talked about it in congress.

No offense, but that makes me laugh. I'm surprised they haven't reinstuted debtors prision!

[Redsox]

Our payment is 1800/mo and we pay our mortgage (1800) outside the BK13. I'd love for Obama to overturn this BK13 crap. I am surprised no one has even talked about it in congress.

[forgotten]

As long as you pay it in full every month you could also claim you did not think you were incurring debt as you always paid in full.
You were incurring debt, but it is a reasonable argument to claim stupidity and plea for mercy.

[dmc-2008]

Ahh! Wow the intricacies!! Thank you LITR!