How Hard is a Chapter 13?

[cborn]

I have scheduled a consultation with the first one so far. I am thinking chapter 13 because I hav a home and vehicles that I need to keep. I also have been on my job for a while and I do make enough money to cover all of my bills. It's just that there is nothing ever left over and it's been that way for years. I can never concentrate on getting any one of my CC paid off because something always comes up. Now with my property taxes delinquent and I fear I am going to owe the IRS at tax time because my oldest son is 17 and I no longer get the child tax credit for him. So that's why I think I need to go chapter 13 if I do this.

[keepsmiling]

You may be able to keep your home and cars in a 7. It all depends on you equity in both and your disposable income. It is not solely based on your income so run away quickly from any Atty who tells you it is.

Congrats on taking the first step!

[keepsmiling]

Also... This is important. Your state is the only one with a special plan. Its called a 128. Check it out! You may have just gotten very lucky.

[cborn]

Also... This is important. Your state is the only one with a special plan. Its called a 128. Check it out! You may have just gotten very lucky.

Hey thanks for the information. I had no idea this existed and although it doesn't do much for monthly relief, I could be consumer debt free in 3 years. It's a pretty cool deal provided you can make the payments.

[angel2002]

Hi cborn. I agree with everything everyone else has posted. Ch 13 100% transforms your every financial decision from the moment you consider filing. Our plan is for 3 years. We had exhausted our savings and were behind in mortgage payments, car payments and could barely keep the lights on in our house. When we got the letter in the mail stating we were in foreclosure we knew that this was a hole we weren't going to be able to dig ourselves out of. At the time we had to literally scrap every penny we could find just to retain our lawyer.

Although we weren't foolish with our money before we filed we still learned a valuable lesson. We've learned the difference between needs and desires. For instance I needed a new shower curtain for our bathroom and could not talk myself into buying the $20 one at Target. Instead I went to the Goodwill and found a nearly new one on sale for $4. I also turned to clipping coupons. Just couponing alone I have shaved our $500/month food and personal care budget down to $200 total! Oddly enough I started doing the coupon clipping thing because of the financial management course we had to take that is required by the court. BEST SUGGESTION EVER! I am not embarrassed one bit about our new shopping habits and I'll continue this long after discharge.


Today we are 2 months from finishing our plan and are planning aggressively for our future. I for one am thankful for the experience and do not regret it. Sure our credit is in shambles but it won't be forever.

[Nursemikki]

Hi, I am brand new here and have been reading all the posts and have gotten very confused. I am considering filing for a chapter 13. I am noticing that everyone is speaking on how difficult and hard it is? I was under the impression that the payout while under a chapter 13 is less than what was being payed out before? Doesn't this leave more money every month? Why would that be more difficult? And answers would be greatly appreciated.

It certainly hasn't been a walk in the park. I had stopped paying my credit cards, attempting settlements long before actually filing. The idea that I'd have more available $ during my plan was a joke. While their were some old credit cards, a repo'd vehicle, etc the majority of my debt is back taxes & school loans.

Another thing I've noticed is most people here seem to be married, which (I'm guessing) alleviates some stress as they have someone to talk to thru this process and there is not just one person responsible for all the income. I can only work so much.

My 2 biggest problems through this process is 1)I NEED to move. My travel costs have increased since my plan started and to say I am not in a safe area is an understatement. 2) I have incurred some medical bills due to a surgical procedure which caused a short hospital stay.

[AngelinaCat]

Hi Nursemikki.

I don't know that it is true that many or most people posting here are married, or in some type of committed relationship, and that they can talk to each other. I wish that was true, and it certainly may be true, but it seems to me from what I read, is that one party is wanting/needing to file BK and get control of the finances, and the other party is somewhere between total denial and non-cooperation, to just too scared to do it.

When 'Hub and I married in my Church, we had to take a mandatory weekend course that covered several different topics involving communication and relationships. But the overriding theme of all of the courses, was 'Money and How the Couple Handles It'.

The main point being is that it isn't infidelity, or work, or other things that contribute to the breakup of a marriage or relationship--it is the way that the couple handles their finances.

And the underlying theme of all is TRUST!!

I have had to step away from a couple of threads recently, where I can see what's going on in the relationship from the way the post is worded, but the poster is not ready for a 'tough-love' type of post.

Hopefully, as the poster learns more by reading through here, he/she will get a better perspective....

[dmc-2008]

I am not married or in a relationship of any kind. I am a single mom doing this 100% alone. Nobody knows in my family and I certainly don't shout it on the rooftops to my workmates or my kid.

It's very hard, it's a huge burden. If it doesn't work I only have myself to blame as I am to blame for this whole mess anyway.


I just get up everyday, put on my big girl panties and do the best I can.

You're not alone in being alone!

[woeisme]

I'm married, but I'm the "saver" and my husband is the "spender" and it made my CH 13 way harder than it needed to be, and the emotional upheavals of having someone who is supposed to be working with you seeming to thwart your best efforts to makes things work and save $, so I definitely wouldn't say being married makes a BK easier, it made things much harder in my case. But we managed anyway (although at times there is still resentment, unfortunately.) Best of luck, it can be done!

[karm43]

One thing for certain I do not miss the constant calls letters and magistrate letters! However, its far from easy. Start saving for emergency. We just had a streak of bad luck our 2nd car died and my 19 year old cat got sick and I had to put her to sleep wiped totally out! I am so glad I was able to buy another cheap car. Plus I noticed our income went down and we have to pay another 130 month for health insurance. Knowing that I will be debt free at the end is what keeps me going. I am cheap buy all my clothes at the sally, I go nowhere and I never eat out. Everyone different, some breeze through, save!

[karm43]

Too bad they don't consider inflation and cost of living going up.