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Why is it some people can't make it 60 months?

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    Why is it some people can't make it 60 months?

    I was just looking at my district's court docket and it really hurts that I see people who filed in 08 up for dismissal for failure to make plan payments. To get this close... This five years is killing me and I almost 3 yrs into it... But then I look and see I have paid over$34k into... It's sad to see that for others. I know some May be due to job loss but I wonder if others just said "F" it and stop paying.... I mean, there were so many of them!

    #2
    I highly doubt they just quit paying for the heck of it (though many do file ch13 just to delay a foreclosure). 5 years is a long time and things change. Between 66% and 75% of ch13 bk's fail. My guess is the majority are due to job loss, sickness and/or getting into a situation where you become judgement proof.

    My wife has lost her job 4 times in 5 years, so I am certain we would fail in a 13. Unfortunately, imho ch13s we're never designed for the reality most people face when considering bk. 13s were designed for people who wanted to protect assets at the trade off of paying for them over a period of time. After 2005, that all changed.

    Nonetheless, all is not lost and as many on here have proved over and over ch13s are manageable especially when you have a good lawyer. There is also the option to convert a 13 to a 7 if your income declines or apply for a hardship discharge, so not everyone that fails a 13 is doomed. Just my $.02.

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      #3
      Malazan is very good with his analysis.

      But it is also true that some people, simply do not have, or will cultivate, the self-discipline necessary to have in order to complete the plan.

      Or they have addiction problems that get in the way. This was true of my BIL when he filed a CH13 nearly 12 years ago. He could have made the payments easily on what he makes each month. But no, he defaulted because he was too busy pursuing his drug demons.

      To BIL's credit, I must say that he has been clean and sober for the last eight years. We are VERY proud of him.
      "To go bravely forward is to invite a miracle."

      "Worry is the darkroom where negatives are formed."

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        #4
        Angelina,

        Yes, I do think that some people just seem to drift through life and think that there is always a safety net or a soft place to land. Life will convince you that it's hard and sometimes you hit bottom. But the bottom is not the end, it's just the place you rise up from. In my own case, I had a great attorney and finally had the resolve to make this work. I checked out the alternatives and studiously avoided those 'solutions' that just sounded too good to be true. Filing for CH 13 just made sense because it reduced the interest rates on unsecured credit to ZERO, allowed me to fend off the IRS and keep my home and family together. Once you realize what's really important and what matters, the goal is already yours... you just have to travel the road and pay the price to get it!


        BTW... I am happy for your BIL and your family that he saw the light and left the darkness behind. That is AWESOME.

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