5 year vs 3 year Chapter 13 Pros and Cons?

[Sammie]

We have 2 1/2 yrs. left in our 3 yr. plan. Our bk was strictly cc's. Never again. I wonder now how we made those monthly payments--oh wait! We didn't, we made min. payments.

[sophieanne]

Well said andy158..i couldn't agree more!

[andy158]

We are in a 5 year plan with no choice. Keeping assets like two cars, house , rental property landed us a 60 month plan. It seems like it will never end, but I can tell you it has been nice living on a cash only basis. A real eye opener. You can easily see where every cent goes and we are more in tune with our adjusted lifestyle. It is a strict teacher , but valuable lessons have been learned. The needs and want list is very cut and dry now. I can tell you I will never have another credit card or car financed, EVER! The money we pay into our plan every month will go into a savings account when our bk is done. About $15,000/yr. We will draw on that reserve for car replacement, major purchases, emergencies, etc. We live well making the bi monthly payment and will not miss the money going into a savings when discharged.

[dmc-2008]

Yes keeping taxes does make a huge difference! I forgot about that, I guess I am just resigned to haned them over,

[spidge]

If you can find a way go for the shortest period possible. As mentioned before, many things can put the BK at risk so reducing the time may help. Also it would free up the taxes for you to manage and keep any refunds you would otherwise have to send to the trustee. That's just my opinion though.
I was below median and selected the 60 month plan as the payment was way to high for us at 36 or 48 months. We have mortgage arrears and taxes included along with a lien strip. The taxes look like they will be paid in full at about the 30th month where the mortgage will likely take until the 36th month. I am in a 3% payback and the 2nd did not make a claim and only one non secured creditor claimed. I don't know how it will work, but I hope that gives me a chance of finishing early.

Signed,

Frustrated, but clogging along.

[dmc-2008]

Ccmisery, i think this part, the beginning might be the hardest. I hope!

[dmc-2008]

Thank you Sophie, there is nothing straight forward bout mine :-( i have mortgage, a lien strip, and unsecured debt! I am not 100 % payback so i am def looking at five years! Well four and a half almost! I am not even confirmed yet! Lol

[ccmisery]

I am in limbo, I won't know if I even can get a 13 yet? I think a 3 year plan would be ideal for me.

[sophieanne]

Hi DMC,
My case was very straight forward. One secured debt (a car) and lots of unsecured credit card debt. It was a very simple case. My attorney was even surprised how quickly it was confirmed. And since it was a 100% plan, there was nothing to have problems about. Good luck to you!

[dmc-2008]

Wow you got confirmed fast! I filed in Oct, 341 in Dec., and because of screw ups, I am now waiting till April!

[sophieanne]

I'm in a 5 year plan (will be closer to 4 since a large creditor didn't file)...and it's fine with me. The reason it's fine is is that if i hadn't filed BK, i would be paying even more monthly than I am now (it just feels harder because I'm seeing 1 large payment rather than a number of smaller ones). and instead of being done in the 5 year period, it would take 30+ years in some cases. Of course, it would be nice to be done in 3 years, but it is what I created and for now it's easier to live/work with.

[dmc-2008]

Its only actually 24 more months, once i reach the 3 year mark i will considee it over anyway, then its only 24 more months and its off credit report! 3 year plans have to wait the same time for credit report too. Naner naner :-)

[TheBajan]

We were able to go with the three year plan. We actually had to create DMI by exempting some of our tax refund. I would be so depressed if we had to be in a 5 year plan. So much can happen in 5 years that could mess things up. I guess that's true for 3 years too but the longer you're under the scrutiny of the trustee, the greater the potential of "life" happening.

[Slingerland]

Same as DMC, I have to go 5 year to keep some assets.

[dmc-2008]

I had to go with 5 year, I had no choice.