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Frequent Contributor
Math_Rocks
Posts: 485
Registered: ‎05-11-2007
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Re: Journey through Chapter 13

Thanks for the input, Rhaeny! Since we have been in a DMP for the last two and a half years, we really have learned to live on a cash basis. I am thankful that amongst all that this bankruptcy means, we are not also having to learn for the first time how to live on cash. But I do worry about my dad's health. If something were to happen, I don't know how we would come up with the money to fly out West. I hope and pray that we can get on our feet and put a little money aside just in case for this very reason.

 

After meeting with the attorney on Monday, we are modifying our case to include the credit card issued by DH's employer and all my student loans. We have received notice that the trustee is objecting to my retirement loan repayment, the student loans being paid outside our plan and something about exemptions being exceeded. This last one, I am not really sure what that is about. We also received notice about a hearing before a judge to decide on these objections to our case. However, our attorney's office has assured us that they are working to resolve these issues and there is very little chance that we would have to appear at this hearing. All of this really stresses me out.

 

Thankfully, I did double check, and our 60 months started with our filing date. This is especially good since it looks like it will take a while to get our plan confirmed. I'm so sorry that you have had to pay longer than 60 months, Rhaeny. :smileysad:

Filed Chapter 13 bankruptcy 04/12 after two and a half years in a DMP. So wish we would have done the BK sooner. Live and learn!
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jrd4013
Posts: 3
Registered: ‎07-28-2011
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Re: Journey through Chapter 13

Just finished reading this thread and it brought back some tough memories.  My 36-Month Chapter 13 was discharged on 08/2011 and it was a HUGE relief.  Imagine the relief you feel when you filed and multiply it by a thousand.  The process was not fun and there were many maddening moments where I was wondering whether it was worth all of the frustration.  In the end it is totally worth it. 

 

My Sallie Mae loans were IIB and they were getting paid at a fraction of the normal payment but they were getting something.  The first thing I did was to pay them off after the discharge because by far they were the most complicated and worst people to deal with and the balance was small.  

 

Something to keep in mind is tax refunds.  Every state is different and I am in Indiana, but I was allowed to keep a certain percentage of my refund up to a certain amount.  The remaining amount went to the trustee.  These additional payments helped to shorten my payment schedule by 4 months.  It is little silver linings in the dark clouds of bankruptcy that help keep you sane during the whole process. 

 

It was mentioned here earlier but I want to reiterate too:  Don't bother the trustee with requests unless it is an absolute emergency.  One thing about living under the rules of an open Chapter 13 is that it should force you to always look 5 steps ahead and plan for any issues that may arise that can potentially deplete any cash reserves you may have.  Think twice before you have to go to the trustee looking for permission to do anything that will increase your debt load.  Fly low under the radar.

 

In the end, when you recieve your discharge paperwork (which takes about 6-8 weeks after your last payment to the trustee) keep it in a safe place and when you start thinking about making purchases on credit or taking out a mortgage or a car loan (all of which will be difficult to do at first) take a look at the discharge paperwork, think about what you went through during the chapter 13 and decide whether the financial committment you are about to make is worth it. 

 

Remember:  There is light at the end of the tunnel and it's not attached to a train!  :smileyhappy: 

 

Valued Contributor
Rhaeny
Posts: 1,507
Registered: ‎07-24-2011
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Re: Journey through Chapter 13


jrd4013 wrote:

 

 

It was mentioned here earlier but I want to reiterate too:  Don't bother the trustee with requests unless it is an absolute emergency.  One thing about living under the rules of an open Chapter 13 is that it should force you to always look 5 steps ahead and plan for any issues that may arise that can potentially deplete any cash reserves you may have.  Think twice before you have to go to the trustee looking for permission to do anything that will increase your debt load.  Fly low under the radar.

 

In the end, when you recieve your discharge paperwork (which takes about 6-8 weeks after your last payment to the trustee) keep it in a safe place and when you start thinking about making purchases on credit or taking out a mortgage or a car loan (all of which will be difficult to do at first) take a look at the discharge paperwork, think about what you went through during the chapter 13 and decide whether the financial committment you are about to make is worth it. 

 

Remember:  There is light at the end of the tunnel and it's not attached to a train!  :smileyhappy: 

 




+1000%  .....Ditto to everything jrd4013 just wrote.  Fly under the radar to complete your case and keep the trustee out of the picture unless absolutely necessary.  The phrase that the squeaky wheel gets the oil does not apply here.  The trustee is NOT your friend. Follow the rules so that this can be put behind you.


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014
Frequent Contributor
Math_Rocks
Posts: 485
Registered: ‎05-11-2007
0

Re: Journey through Chapter 13

Thank you, rhaeny & jrd4013. Our creditor's meeting was June 7th and there were some objections to clear up. Our attorney has said that we have nothing to worry about but I feel like I do a whole lot of worrying. Tomorrow there will be a hearing about the objections and our attorney will be there with a modified plan but he said that we do not need to be there. It all feels so strange and I feel like we are a long way from confirmation. But, until then, we are "flying low", sending in our payments on time, and letting the attorney work out the objections. He said that our proposed payment shouldn't change. I really hope that it doesn't as we have worked out a budget we can live on with that payment and it comes down to the dollar.

 

For those of you who filed chapter 13, how long was it between your creditor's meeting and confirmation of the plan? Were there any objections to your plan?

Filed Chapter 13 bankruptcy 04/12 after two and a half years in a DMP. So wish we would have done the BK sooner. Live and learn!
Valued Contributor
Rhaeny
Posts: 1,507
Registered: ‎07-24-2011
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Re: Journey through Chapter 13


Math_Rocks wrote:

 

For those of you who filed chapter 13, how long was it between your creditor's meeting and confirmation of the plan? Were there any objections to your plan?


For me it took 6 months between the 341 meeting and the final confirmation (Mar thru Aug 2007).  I got soooo lucky to be the first BK case that Ford decided they wanted to object to the handling of their account.  Something about how the statute was listing them as an unsecured creditor because of the lease.  Any hoot, that took 6 long months and that was the only objection.  The trustee didn't object to the plan payments and some of the creditors didn't even file a claim.  So that's why, due to the laws in Michigan that your case doesn't start until confirmation, that I have been officially paying for 64 months and in the end a total of 66 months to end my case.


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014
Valued Member
crazynurse123
Posts: 39
Registered: ‎04-29-2007
0

Re: Journey through Chapter 13

I recieved an email this Friday from my lawyer's office stating that my case has been approved by the judge.  I guess this is the same thing as being confirmed.  Its a bit too soon to see a change reflected on the National Ch 13 database. 

 

I will admit I am relieved, but am struggling with my budget.  I think I'm going to try moving to a less expensive apt complex in the next couple of months so that I can have some breathing room.  Hopefully I can find a complex that will accept me with a recent bankruptcy on file.

Member
clayton0417
Posts: 6
Registered: ‎03-06-2007
0

Re: Journey through Chapter 13

[ Edited ]

Like many of those posting, I too am a part of the Journey through Ch 13.  The road has definitely been hard. Some days are good and some have been downright devastating.  What looked good on paper,  did not reflect our reality.  We filed in June 2010 after being told the DMP would not help our situation and also because I was in jeopardy of losing my security clearance (which meant losing my job).   We are in month 26 of a 60 month plan.  As below median debtors, our applicable commitment period is 36 months, but our lawyer proposed a 60 month plan in order to keep both of our cars.  After being in the plan for 18 months, we had to request a modification because my husband lost his job.  We agreed to surrender 1 of our vehicles and reduce our plan payments from $450/month to $210/month.  Our plan base was reduced and it looked like we would pay the plan off in 36 months.  Last week, we noticed $3100 has been added to the plan base.  When I contacted the lawyer's office, I was told to contact the trustee's office to find out why.  I called the trustee's office and was told that since our lawyer had not formally requested to have the length of the plan reduced to 36 months; the $3100 was added to ensure the plan was not paid off prior to 60 months.  When I met with the lawyer to find out why this was not done (although we requested it), he said that the BK judge has never approved reducing the length of a plan so he did not request it.  Instead, he said we should wait until we reach month 37 and then request an earlier payoff.  However, the payoff will reflect paying off a 60 month plan and not a 36 month plan.  Also, the trustee's office will not calculate  or give you a payoff quote unless they know you have to money already on-hand (so as not to waste their time).  Or, he said we could convert to a Ch 7; but our credit report would show both the Ch13 (dismissed) and the Ch7 (active).  My goal is to weather this storm as best we can and use whatever income tax refund and yearly bonus from my job to pay off the Ch13 next year.  It's something to look forward to and every little bit helps.  We try to take things day by day so that we aren't over-whelmed.  We also have our budget planned out through December.  A Chapter 13 is a lot of work and can be emotionally draining at times; but it is survivable.  Spend this time repairing your credit and cleaning up your credit report. Good luck to you all!


Starting Score: EQ-473
Current Score: 3 Jun 14 EQ-649, TU-612, EX-636
Goal Score: 700+


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Valued Member
crazynurse123
Posts: 39
Registered: ‎04-29-2007
0

Re: Journey through Chapter 13

I can sense your frustration in your post, and I'm right there with you.  The thing that gives me encouragement however, is seeing how your score has increased during the time you've been in your plan.

 

I'm hoping with all my heart my car will last the next 5 yrs even though it is just about ready to turn 100k miles.  I hope that at the end of this nightmare I've gotten myself into that I will be able to purchase a home instead of renting and pay cash for my next vehicle.

 

Good luck.

Member
clayton0417
Posts: 6
Registered: ‎03-06-2007
0

Re: Journey through Chapter 13

I'm hoping my SUV will last until I can get out from under this Ch13.  It has over 130,000, but so far no major mechanical problems.  Although it has been hit 3 times already.  My goal is the same as yours.  I want to purchase a home instead of renting.  My landlord refuses to fix anything.  I live in Georgia and in the summer, the inside air conditioning unit turns into a block of ice.  We have to turn off the thermostat and wait until it melts (usually 2-3 hours).  The inside temperature in the house will reach 90 degrees or higher. Last week when it happened, my landlord stood there with a blowdryer for almost an hour trying to get it to melt, LOL.  I asked him why doesn't he just replace it and he said it costs too much.  We've looked into moving and renting somewhere else; but that open Ch13 on the credit report closes a lot of doors.


Starting Score: EQ-473
Current Score: 3 Jun 14 EQ-649, TU-612, EX-636
Goal Score: 700+


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Member
madcitymomm
Posts: 11
Registered: ‎09-01-2012
0

Re: Journey through Chapter 13

I'm so glad to have found other folks in my situation!  I filed Chapter 13 January of 2012.  I had gone through a horrible divorce, had tons of a variety of debt, horrible payment history and 3 figure student loans.  I'm on a 60 month plan.  Everything went into the plan.  It has been wonderful to get control back of my finances and is now much more managable.  I know that when I get discharged I will have the balance of my student loans but that should be about the same amount of a payment as my plan payment is right now.  Also I'm looking into the program for public employees where if they make 10 years of payments the balance is discharged (nbot sure if the plan payments count as 10 years of payments).  It seems when my life was in a spin, I was so vague and just didn't care.  Now I do.  I'm now trying to move forward with the hopes that I'll be able to get a mortgage at some point.  I'm planning to get a secured credit card in the next month as a step to improving my scores to the point that I can get a mortgage.  I read that FHA mortgages can be done with 1 year of Chapter 13 payments.   But I know I need to increase my score.  I'm trying to figure out my credit report and remove anything amiss (the only thing I see is a bunch of open accounts, all but 1 with a balance that were included in my plan but are not showing on my credit report-I don't know how much that will help getting it fixed), but most of it is true-I was horrid at paying my stuff.  I guess I can just move forward and pay my stuff on time, live within my means, etc.  My credit score (I'm not sure which one this is) is 541.  I need 640 for an FHA loan.  I'd like to get it higher.  Baby steps.


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Current Score: 599
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