top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Chapter 13 Newbie

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Chapter 13 Newbie

    Hi everyone,
    I’m new here and wanted to introduce myself and share a bit of my story. Like many of you, I never imagined I’d be seriously considering bankruptcy, but life can change very quickly. Until about a year ago, I was managing my finances responsibly and staying afloat. Over the past year, I became the sole financial support for my household. I’ve been covering all household expenses, maintaining our home, and supporting my spouse, who has been dealing with an illness and has been unable to work. I also took on approximately $7,000 of his existing debt to prevent further financial strain. Between rising living costs, medical expenses, and carrying everything on one income, I began relying more on credit just to keep things stable. What started as short-term support gradually turned into balances I could no longer realistically pay down, despite having a solid income. Along the way, I made some poor financial decisions trying to stay afloat. I took out a high-interest personal loan with extremely aggressive bi-weekly payments, which quickly became unsustainable and led to borrowing from one source to cover another. I also fell into a debt-consolidation program that ultimately cost me several thousand dollars in fees while providing very little real relief. Recently, I was presented with a settlement offer that made it clear I would be paying almost the full balance once fees were included, which was a major wake-up call. (In my opinion debt settlement is a scam pictured nicely).
    Around the same time, I made an impulsive decision to gamble after an initial win, mistakenly thinking I could use it to help pay down debt. That did not work out, and losing that money forced me to finally stop avoiding reality and take responsibility for my situation.
    In December 2025, I made the decision to file Chapter 13 bankruptcy. My credit score has dropped to around 450 (it was in the mid-700s at one point), and while I know credit scores aren’t everything, watching it fall has been emotionally difficult. I’m scheduled to file in about four weeks once my attorney fees are fully paid. As far as my debt goes, I currently have about $112,000 in unsecured debt, much of it recently delinquent. I also have a $50,000 auto loan at 6% interest that I plan to keep, as I rely on the vehicle for work, and a co-signed auto loan for my elderly mother with a remaining balance of about $12,000 with a 4% interest, which she has been actively paying down. I also have about $95k in student loans but these are in forbearance until 2032 given that my school was found to be one of those UOPs shark practices so I was able to apply for the forgiveness for $60k of that amount, but it’s all on hold so I wait. (A few of my classmates got theirs totally erased, I hope my time comes).
    So, that’s the story in a “nutshell’ and
    I’m here to learn, ask questions, and hear from others who’ve been through similar situations, especially around Chapter 13. I’m grateful this community exists and appreciate any insight, shared experiences, or reassurance, particularly around the emotional side of watching your credit and finances unravel.

    PS: I won't rely on credit anymore so I can live, but when do scores start turning around? I mean, 450! Ouch!
    I also wonder, do the trustees leave you with some money to at least save? Or are they as terrible as they sound in some of these posts?

    Thank you for having me.
    Last edited by Jayden; Today, 03:59 AM.

    #2
    Welcome to BKForum.

    The biggest thing if you're going to file a Chapter 13 is having a great attorney that can fashion a plan for you that is feasible and won't be subject to failure. At the end of the day, a Chapter 13 will never work for someone who is unable or unwilling to budget.

    Will the Trustee leave you some money to save? Absolutely not. That's not their job.

    Can your attorney fashion a reasonable plan that allows you some savings? Absolutely yes.

    The United States Trustee Program follows the IRS Collection Financial Standards. Those standard are designed to give you the bare minimum to live. How those standards are applied in a Chapter 13 takes an attorney or firm that fashions a plan that truly represents the debtor's situation and passes muster when it comes to any Trustee objections. That is why you hear that many would rather not do a Chapter 13, but they are entirely doable. I've done one. shipo has also successfully done one. In fact, more people are making it through a Chapter 13 these days as opposed to 10-15 years ago.

    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment

    bottom Ad Widget

    Collapse
    Working...
    X