What to expect?

[gvp559]

Hello everyone. My wife and I have gotten ourselves into a financial pickle and are starting to wonder if bk is going to be the only way out.

We currently have a 1st and 2nd on our house that has been paid on time every month. We each have a car that we have made every payment on time, as well as a 3rd loan we co-signed for our daughter that she makes the payments on, and has made them all on time.

We have racked up over 47k in cc debt and are now drowning from the bills. We have managed to make all our payments on time, but the end is fast approaching.

Our initial questions are:

1. Will we be able to keep our home? We owe 170k on it, but it is worth at best 190.

2. Will we be able to keep our cars? There is no equity to speak of and all have reasonable payments. 2 of the cars are financed through my wife's employer, so if we are able to keep them out of the filing, is there any way they would still find out about it?

3. If we file for 13, how does the payment plan work? Do we pay off the 47k over 60 monthly payments? Or is there a formula that determines how much we are to pay each month and for a set amount of time?

And what types of things are allowed and not allowed, such as cell phones, internet service, directv, home alarm system, etc?

Just kind of curious what we are in for, thanks in advance for any help you guys might be able to lend. We are in Idaho if that makes a difference also.

[B12]

I had the exact same questions a few weeks ago and by the way, knew absolutely nothing about bankruptcy. I found this site and perused every thread. I got 99% of my questions answered right here and calm has taken over.

Read every thread here that time allows and I feel confident you will get your questions answered as I did. If you still have questions, just ask, the people here are so helpful.

Good luck

[whatamess]

Our initial questions are:

1. Will we be able to keep our home? We owe 170k on it, but it is worth at best 190.

Depends on your states homestead exemption

2. Will we be able to keep our cars? There is no equity to speak of and all have reasonable payments. 2 of the cars are financed through my wife's employer, so if we are able to keep them out of the filing, is there any way they would still find out about it?

They will find out as you have to list ALL debts in your BK. You can reaffirm them if you want, but alas they will know.

3. If we file for 13, how does the payment plan work? Do we pay off the 47k over 60 monthly payments? Or is there a formula that determines how much we are to pay each month and for a set amount of time?
Check out the ch13 area..I am not sure. There is a formula, but I am not quite sure of its workings.

And what types of things are allowed and not allowed, such as cell phones, internet service, directv, home alarm system, etc?
Cell phones seem to be okay here if under $50 a month, internet as well, Direct Tv is okay if its basic or at least NOT with premium channels, like the $100 package. Our Dish top 120 at $50 a month was okay.Home alarm..I dunno! Maybe if you can prove you live in an area its really needed?? I havent heard that one mentioned here before. There are places here in my state you would need one... That and a BIG gnarly dog.

Just kind of curious what we are in for, thanks in advance for any help you guys might be able to lend. We are in Idaho if that makes a difference also.

Do a search here for the alarm system and the 13 payments. I hope everything turns out.

Good luck!!!
WAM

[SinkingFast]

The Median Income for Idaho is:

1-$36,025 2-$47,056 3-$50,453 4-$54,165

Household size - $/year income Add $6900/year per person over 4 in the Household.

You should be OK on your Equity in your house. $50K Exemption. Car to $3K. Not sure if that doubles if you both file or not. A question to ask attnys as you Consult around.

Here's a link for Idaho Exemptions:

http://www.bankruptcyinformation.com/ID_exemp.htm

When you file BK, you have to list all Creditors. You cannot pick and choose which to list or not list. You can pick and choose which you want to reaffirm and those you don't want to reaffirm.

Ch 13 Payments are totally based on Disposable Income. Each Filer's Disposable Income is a rather complex determination. If after crunching the numbers, the Schedules show you only have $200/mo in Disposable Income, then that's what you pay. If you're over the Median for your State, you'll most likely be in a 60 month Plan. Under the Median, you could get a 36 month Plan.

Generally speaking, cell phones, internet, and cable/Direct TV are allowed expenses. Home Security possibly will be too as it's for the benefit and safety of your dependents. The Trustee may restrict some portion of your bills tho. Like if you have the ultra deluxe cable package,......... The Trustee may only allow for basic service. The remainder would have to be accounted for in your Entertainment expense area.

[gvp559]

Thanks so much for the info guys, we are going to schedule some consultations next week, so we'll be spending a lot of time going through this board to gather as much info as we can. It's to know that we're not alone, even though it feels like we are.

[Minnymouth]

GVP599,

Don't EVER THINK your ALONE................ many on this forum are in the same position you are and trying to make the same decisions that you are trying to make right now.

Many of us have already been there and done it!!!

We are here to support you in your decisions, help you make right ones (we hope) and guide you in the right direction so that your filing bankruptcy will bring you back to a "fresh start" when it's all over....

Filing bankrutpcy is an individual thing, and each case is different due to circumstances but basically they all follow the same path, the same frutstrations, the same worries and concerns.......

Feel free to ask questions, be sure to contact a BK attorney (2 or 3) and see what they suggest in your situation.

Keep us posted

[redwritingmom]

Minnymouth is right. Many of us have been there, done that.

My passion is to help people like you, not in the legal aspects of bankruptcy, but in the dignity part. By the time we file, we can feel like such losers. While few would agree it's our best moment, it can release us, teach valuable lessons, and help us feel grateful for a fresh start. In other words, your credit is not who you are and filing is not the end of the world.

I pray you can find a way out without filing, but if you do, you are not alone.

CS

http://www.hopeforthebankrupt.blogspot.com