Is Chapt. 13 always this crazy!

[tofu4you2]

I've gained so much info from this forum. Thanks. We are ready to file 13. I was beginning to feel like there was light at the end of the tunnel until I read a few posts about BEING in chapt. 13! Is it always that crazy? It sounds like you don't have two nickles to rub together for 5 years! If any emergency, a daughter's wedding, anything extra comes up....then what?! Now I'm just sick to my stomach! Is it always that bad? Why do the courts make it so difficult. Do they want you to fail? Please advise. Thanks.

[keepmine]

I've gained so much info from this forum. Thanks. We are ready to file 13. I was beginning to feel like there was light at the end of the tunnel until I read a few posts about BEING in chapt. 13! Is it always that crazy? It sounds like you don't have two nickles to rub together for 5 years! If any emergency, a daughter's wedding, anything extra comes up....then what?! Now I'm just sick to my stomach! Is it always that bad? Why do the courts make it so difficult. Do they want you to fail? Please advise. Thanks.

The law states that all disposable income goes to fund the plan. The reason most plans fail is due to emergencies from unexpected expenses or, a job loss.
You also have to prioritze your spending. Things like weddings and helping a child with college expenses just isn't doable. You learn a life lesson here. You can't help others until you first help yourself.
I've not followed all your posts but, why are you filing a 13? What percent payback to unsecured creditors?

[krielly]

In my opinion, it's all about the budget you set up.
A good attorney may be able to pad your budget a bit so you will be able to set a bit of money aside for emergencies.
We are halfway through a 60 mos plan. It's been tough, but 2 1/2 years of not being able to fall back on credit cards has taught me to penny pinch wherever I can.
Try to anticipate things that may come up and budget for them if you can. We included things over the life of the plan like tires, car repairs and a new roof, etc, etc. We were able to include those into our plan, and last year were able to shingle our roof with the $ we were able to put aside.
Plan plan plan, and then plan some more.

It's not easy, by any stretch, but it can be bearable with the right budget. In some ways I am greatful for the experience. I have learned so much financial restraint over the past 2 1 /2 years I can't believe the money I used to spend for nothing, basically.

K

[chpxiii]

People always freak out with a chapter 13. One of the reasons you submit a budget is so that you CAN have money for emergencies.

I filed in 2003. I went to a debtor's class that was held in the same room where the 341 meeting was being held. The class was in the morning, the meeting in the afternoon.

Part of the class was learning to budget and learning to save. One of the things that class emphasized was SAVING MONEY FOR EMERGENCIES. I remember the lady saying, "For example, you submit a budget for monthly car expenses. It doesn't mean you get your car repaired every single month. You SAVE THAT MONEY for when you really need it."

Of course you'll have 2 nickels to rub together. Again, that is why you submit a budget to the trustee. The money doesn't HAVE to be spent every month, and infact it SHOULDN'T be spent every month.

Another example, do you really need $80 worth of clothes every month? No. That's what I had budgetted for my monthly clothing expenses. I didn't buy $80 worth of clothes every month, nor did I have to repair my car every month. (But then, my car was only a few years old so it was still in great condition.) Then there are other things (I don't recall off hand) that I had budgetted for monthly expenses. But it's not like I actually spent the money every month. It stayed in the bank.

Because that's what I was taught at the debtor's class: just because something was budgetted for monthly, doesn't mean you actually had to SPEND it monthly. There was a HUGE emphasis on saving money for emergencies.

Has it changed so much that the classes you have to take now don't tell you to save? I've been reading a lot of the recent chapter 13s and I've been wondering that. Why do people think they won't have any money when they're submitting a budget. If you stick to it (barring emergencies), you will have money left over at the end of the month to save for when you DO have emergencies.

I always had money for food, utilities, some entertainment, and vehicle repairs. At the end of 3 years I even had enough money saved up ($1200) to purchase, cash, a washer and dryer.

I have also used this time to improve my marketable skills so I could get better, higher paying jobs and I am now making the most money I have ever made. That's *crucial* to a successful bankruptcy.

And like krielly said, I learned a lot. I've pretty much almost always lived a cash life even before bankruptcy. So my chapter 13 helped to prove to me I don't need credit.

BTW, maybe it's because I'm not a parent, and I have paid my way my whole life with NO help from EITHER parents (worked through school, paid my own way with no money, shelter, food, etc. coming from either parent) , I don't think a parent owes their children to pay for college or a wedding. But that's just me.

[tofu4you2]

Why 13?

Actually, I am not sure if it will be 13 or 7. I did the means test and I think we are a little over. We are 6200 a month with 5 children. We have $95k unsecured debt. We have a house that wouldn't sell so we rented it. We moved out when we tried to sell it. We rent here. We have about $5300 in expenses a month. That includes our $600 rent but not our mortgage. We also tithe
$620 to our church every month included in that expense. So it looks like we do have disposable income. We also prepay 2300 for my son's high school tuition. I don't know how that's going to fly though. I was planning to use part of my tax refund that we already got towards his tuition for next year.
Let me know what you think?

[qwertysue]

People always freak out with a chapter 13. One of the reasons you submit a budget is so that you CAN have money for emergencies.

I filed in 2003. I went to a debtor's class that was held in the same room where the 341 meeting was being held. The class was in the morning, the meeting in the afternoon.

Part of the class was learning to budget and learning to save. One of the things that class emphasized was SAVING MONEY FOR EMERGENCIES. I remember the lady saying, "For example, you submit a budget for monthly car expenses. It doesn't mean you get your car repaired every single month. You SAVE THAT MONEY for when you really need it."

Of course you'll have 2 nickels to rub together. Again, that is why you submit a budget to the trustee. The money doesn't HAVE to be spent every month, and infact it SHOULDN'T be spent every month.

Another example, do you really need $80 worth of clothes every month? No. That's what I had budgetted for my monthly clothing expenses. I didn't buy $80 worth of clothes every month, nor did I have to repair my car every month. (But then, my car was only a few years old so it was still in great condition.) Then there are other things (I don't recall off hand) that I had budgetted for monthly expenses. But it's not like I actually spent the money every month. It stayed in the bank.

Because that's what I was taught at the debtor's class: just because something was budgetted for monthly, doesn't mean you actually had to SPEND it monthly. There was a HUGE emphasis on saving money for emergencies.

Has it changed so much that the classes you have to take now don't tell you to save? I've been reading a lot of the recent chapter 13s and I've been wondering that. Why do people think they won't have any money when they're submitting a budget. If you stick to it (barring emergencies), you will have money left over at the end of the month to save for when you DO have emergencies.

I always had money for food, utilities, some entertainment, and vehicle repairs. At the end of 3 years I even had enough money saved up ($1200) to purchase, cash, a washer and dryer.

I have also used this time to improve my marketable skills so I could get better, higher paying jobs and I am now making the most money I have ever made. That's *crucial* to a successful bankruptcy.

And like krielly said, I learned a lot. I've pretty much almost always lived a cash life even before bankruptcy. So my chapter 13 helped to prove to me I don't need credit.

BTW, maybe it's because I'm not a parent, and I have paid my way my whole life with NO help from EITHER parents (worked through school, paid my own way with no money, shelter, food, etc. coming from either parent) , I don't think a parent owes their children to pay for college or a wedding. But that's just me.

Can someone nail this to the BK13 wall? Very well written, and very very true! Bravo!