Filing for a second time? Should I or am I even able?

[justbroke]

A "typical" Chapter 13 runs from about $2,500-$5,000. I would say that the median Chapter 13 is about $3,500 required before filing, with about $2,000 in-plan.

[texascc2]

I guess the same goes for asking how much it would cost to file...you probably can't say since it varies from attorney to attorney. Is there a ballpark amount I should stay within? I hate to think about doing this for this small of an amount, but like I said, overtime is GONE and the bonuses that we used to get bailed us out of anything that we had started to fall behind on...no more of those lately either. I'm thinking of getting a second job but that means I would literally not see me kids and not be there to help with homework, practices, games, etc....I know desperate times call for desperate measures but I have to be there for the kiddos as well.

[justbroke]

1. If I was to do this, how much could I expect to pay back?

There is no way to guess or even provide you with a range that you would appreciate. For example, people payback between 0% and 100%. Since the payback is based on your "disposable monthly income" (DMI) combined with other factors (income, household size, allwoed expenses, income, taxes, medical, food, clothing, cars, etc), there is no way to tell hyou specifically what you will pay. What you won't pay, is anything more than what your DMI is calculated.

2. Could I walk away from my van and how does that work? I have a reliable vehicle that I can use/buy directly from my brother if I can get out of mine.

If you filed bankruptcy, you could walk away by surrendering the vehicle. The debt would be discharged.

With a family of 5 and only making $80K a year, you are very close to the median income for Texas for a family of 5 (which is about $75K). At this time, you can't receive a Chapter 7 discharge due to your previous filing. Whether a Chapter 13 is the right course for you is something that you would need to decide.

[texascc2]

No, no, no...I'm not going to get defensive. I want any and all honest comments. You speak the truth. I'm a horrible at budgeting and WANT to live a life of all cash. But we've never lived lavishly or bought expensive clothes etc but just having and raising three kids with ZERO help as far as child care goes really took it's toll and yes, we use our cards when we got down to the nitty gritty. But that was after selling old clothes, dvds, books, turning in coins, etc. What usually happens is that we have so many small cc payments on auto pay (due to being on a repayment plan) that things get out of hand and before we know it we have nothing in the bank and it's 10 days to either pay day. My kids are 9, 7, and 3 and are playing sports for the first time in their lives...and I arranged a payment plan with the flag football organization for that. NO vacations, not even a quick road trip. Not trying to argue or paint myself as a saint, but I'm not someone who leased a Benz, vacationed in Europe, and eats at the finest places to get into this position and now I want to get out before it snowballs any further. Two more questions:

1. If I was to do this, how much could I expect to pay back?

2. Could I walk away from my van and how does that work? I have a reliable vehicle that I can use/buy directly from my brother if I can get out of mine.

[AngelinaCatHub]

I understand you "living beyond" as there are 'painful' times for me due to the fact we had money once and this habit of just getting it when I want it spending is hard to kick. We do succeed though as we refuse ANY credit (except a car note) and have everything paid off. Technically we have no bills due to a firm ethic of "no cash, no purchase".

That is what you now have to do. No cash, no spend. AS JB suggested, a C13 would keep the dogs off your tail and also regulate your spending for you. Take it seriously though as you admittedly don't have enough self control. (you said it, so be a 'big boy' about it).

I'm not attempting to judge you, or talk down to you. I'm giving what you asked for. H E L P , and that's all.

Welcome to the forum by the way. I will check back on you every day and wish to give you help to my best ability. 'Hub

[texascc2]

Thanks for taking the time to read and respond to my post.

As far as refinancing the van, not going to happen. I've tried multiple times and the van is too old and has too many miles (2005 with 110,000 miles) and I'm a little upside down in it. I owe $13,500 and am always told that I'm at least $2000 - $2500 away from being able to refinance it.

Our credit scores are very bad as well (mine is 580 and wife's is 626) so I've never been able to consolidate the $12k into a single loan but that would probably be enough to help us out. I even tried home equity loan and that was denied due to credit history.

I'm horrible at budgeting but I do have ALL of our bills in a spreadsheet with due dates, amounts, and contact information which has helped greatly with staying organized.

Lastly, I forgot to mention about $1000 due in hospital bills that are turned over to a collection agency that I have not even addressed yet as well as $5000 in school loans (which I didn't mention because I can't get rid of them anyways). This also stems from a layoff in 2009 that lasted a year and zapped my savings. The same company eventually rehired me but it did take it's toll.

[justbroke]

You could not file a Chapter 7 (technically "receive a Chapter 7 discharge") until 8 years has elapsed from the filing of your last Chapter 7. Your only choice, at this point, would be a Chapter 13.

Your issue may be more about budgeting, even though you do have some belt tightening going on. Perhaps you could refinance the Honda (??), unless you're less than 11 months from paying it off. Otherwise, that interest rate is certainly killing you. Have you thought of consolidating all the revolving debt (the $12K) into a 5-6 year installment loan? That could help as well, but you'd need to give up most of those revolving credit cards.

What is your actually shortfall? Have you tried putting your budget into a spreadsheet (such as Excel) and looking forward? I would especially look at the affect of school holidays/recess on your budget (since that may be a big area where you are hurting the most). If you are relying on credit cards (revolving) during those tight months, such as when school is out of session, then you certainly have a shortfall. If your income can't cover the childcare, you may need to consider a spouse saying home instead of working -- if working is counterproductive. You can only determine the overall affects by running a year's budget and include every single expense down to the $1.

[texascc2]

First and foremost, I'm a big boy so I can take your comments. I know I have not handled our finances well and have paid dearly for my mistakes...here are my questions and scenario:

I filed for Chapter 7 and received discharged back in May of 2007. At the time, I was WAY over my head in debt due to stupidity and poor money management. We had almost $80k in credit cards and loans and really had no good reason besides living beyond our means.

Currently I'm starting to feel the pinch again and have had to take money from family to make ends meet for the last few months.

I am in the semiconductor industry and things have pulled back and for the last year there has been ZERO overtime available to me. I used to work the max and would literally double my checks and was used to living on that money.

That said, we don't live lavishly and have really kept things to a minimum. Just the basic bills, no cable, very little eating out (and nothing extravagant) but we do have 3 children and day care kills us, especially during the summer when they all are out of school.

We have very reasonable mortgage ($1150/mt) and a great interest rate 3.25 percent. We own a 2001 Chevy Suburban that is paid for, a 2005 Honda van that we owe $13,500 and have horrible interest rate of 20% on and payments of $411 a month. We now have a total of $12k in various store and credit cards and with all these minimums we are starting to fall behind.

Would it make sense to try and file again? Could I even file again? I'm ready for comments and questions so please let me have em!