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Frequent Contributor
Math_Rocks
Posts: 485
Registered: ‎05-11-2007

Re: Journey through Chapter 13

Hello, clayton and madcitymomm! Thanks for joining this thread. I know that together we will make it through this journey!

 

We are still waiting to be confirmed and making our payments (which actually went down) in the mean time. I am actually pretty excited going into this next month that we should be able to cover all our expenses and put some money aside for all the stuff that comes up. It's a terrific feeling but so strange to be so happy living on a budget. I will also be getting a little raise at the end of the month so things really seem to be looking up for us. We just need that confirmation to come through. (The last objection raised was that they didn't have paystubs that we most certainly provided.)

 

So not a lot to update but I wanted to pop in to say hello and let you know that things are going well. I hope that things are going well for you all and I would love to hear more updates.

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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madcitymomm
Posts: 11
Registered: ‎09-01-2012

Re: Journey through Chapter 13

Math_Rocks,

 

I didn't have any objections, well except the trustee wanted my student loan within the plan, which is fine by me.  My attorney didn't know how I had been managing for 2 years.  I had garnishments, was living on cash (because of the multiple garnishments I had to get a paper check instead of direct deposit and my complete lack of interest in managing my checking account was causing many overdraft fees).  Those were tough times, cash, paying in money orders and living with my 2 kids on lots of ramen noodles (and a couple trips to the food pantry, which was humbling).  I guess I had to hit bottom.  So when we set the budget with the chapter 13 it was much more realistic, with more than $100 a month on groceries (I was getting by on that, yep, with 3 mouths to feed and I still don't know how I managed).  So living on the plan/budget is a step up for me.  I have money for things like renters insurance and am even socking $15 a month into each of my children's college fund (I have to start somewhere).  I have savings and checking accounts again (after getting turned down at one credit union to even open a savings account initially I found a bank that is working with me).  I am meticuluous about balancing it.  I use Mint.com to track my expenses and progress.  I'm still flying under my budget (I think it was $400 a month) for food mainly because I'm an avid bargain hunter/couponer and I had to learn to live with less.  This allows me to start saving a bit.  It was a great feeling a couple weeks ago to have my battery die in my van and have the savings to cover the expense.  Before bankruptcy this would have set a tragic tailspin on my life.  I had no expenses for entertainment before and now we do, although I still try to not use it.  I'm hoping my van last 5 years.  My plan is to keep saving and hopefully have a decent downpayment on a house when my credit is clear enough for a mortgage and pay my next vehicle in cash.  I do not want to get into the credit mess ever again.  I'm thinking of picking up some seasonal holiday work and will hopefully be able to add to my savings (I never had saved anything before).  I guess it just feels good to finally have a plan and not to be living in such a fog anymore.  Someone once told me if I could get my finances in order then the rest of my life follows.

 

To those who have increased their credit score-what seems to help?  I just looked at my credit report in detail.  There's many inquiries from what looks like collection agencies-and as I read it looks like those will be on after 2 years.  There's a slew of adverse reports which will be coming off in the next few years.  I have one adverse with a balance due that was in my bankruptcy that I need to get changed.  I have no open credit, which I'm planning to get a secured card in the next month or two (and to me a secured card seems like a debit card almost).  

 

I was hoping to next year begin thinking about a house, depending on how much I'll have saved for a downpayment and how much I'm able to increase my credit score.  However thinking about a timeline it looks like a bunch of things will be coming off my report in 2014 so perhaps that is a better timeline for me.  

 

I guess I'm lucky, I have a great job, health insurance, a roof over my head and food on the table.  I'm counting my blessings. 


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Current Score: 588
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Contributor
Poorboi
Posts: 86
Registered: ‎06-02-2012

Re: Journey through Chapter 13

I was discharged on 8/1/12 from ch13. After rebuilding for the last six months prior to discharge myscores all jumped over 60 points each,once the discharge reported to near 700, ficos. I now disputed something in my student loans and all of my scores dropped over 100 points, so becareful.  I'm hopin the points come back even if it shows verified

New Contributor
2Ds2Cs
Posts: 70
Registered: ‎02-20-2009

Re: Journey through Chapter 13

I just read this entire thread and wonder how the monthly budget is set.  How do they figure how much you can afford for your payments?  Is your mortgage included in that number?

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

Re: Journey through Chapter 13

Congratulations on your discharge!  I'll be really happy once I reach that milestone.


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Current Score: 5 Jun 13 EQ-631, TU-605, EX-658 (Lender Pulled)
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Frequent Contributor
Math_Rocks
Posts: 485
Registered: ‎05-11-2007

Re: Journey through Chapter 13

Congratulations on your discharge, Poorboi. Ours is a long ways away but the first half-year went by quickly so maybe the rest will zoom by too.

 

Hello and welcome 2Ds2Cs. Are you filing/have you filed Chapter 7 or Chapter 13? With our chapter 13, we used an attorney and his office was able to provide us with all the numbers that were reasonable for the budget for a family of our size and circumstances. We proposed numbers. They helped us work some budget areas up and some down based on what would really work for us and what the court would deem reasonable. I was really worried about our budget for cell phones based on other people's posts here but it wasn't a problem. 

 

Well, it is time for an update. Here is the good news: our bankruptcy was confirmed Sept. 20th so it took about 5 months. (We filed April 30th.) But the bad news is, and if you have read through this thread you know we were worried about it, that DH was fired last week because we included a credit card account in our bankruptcy that the bank he worked for owned. Our attorney had told us in no uncertain terms that it needed to be included and we shouldn't make payments to them on the side because that would be showing preferential treatment to one of our creditors. We followed his advice and this is where we are at now. He assures us that it was illegal for DH's employer to fire him because of this and we may sue them. But, in the meantime, DH is unemployed and we are not sure yet if he will receive unemployment income. It's a huge mess. So, I am not sure what I would recommend to anyone in our shoes. DH alternates between anger at his employer and frustration that we didn't make payments to them on the side. I feel like we were in a no-win situation. I would appreciate any words of wisdom or encouragement. Since DH was commuting an hour each way, we are hopeful that now he can find something closer to home but we live in a small city. It may take a while.

 

If we receive unemployment income, then we will still be able to make our BK payments and just live a bit leaner, which is okay. We have been living pretty lean for a long time already. But if his unemployent claim is denied, we are really up a creek unless he can find something that pays decently quickly. We should know about the claim in a couple weeks.

 

Has anyone else faced unemployment during a Chapter 13? 

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

Re: Journey through Chapter 13

There are specific amounts for each catagory.  If you request more than one catagory you have to justify it.  For example one of mine was a bit higher than the allowed but I have kids that I was putting in activities to keep them occupied during the summers off.  I found the budget to be very generous.  For example my food budget is $400 a month for myself and my two daughters.  I was scraping on about $100 a month before I declared. I can eat meat again!  And my lawyer made sure I had things like renters insurance (which I hadn't have but now do).  Yes, mortgages are in it.


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madcitymomm
Posts: 11
Registered: ‎09-01-2012

Re: Journey through Chapter 13

If you are unemployed can't you switch to a chapter 7?  OR have your budget adjusted?


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Contributor
Poorboi
Posts: 86
Registered: ‎06-02-2012

Re: Journey through Chapter 13

I couldn't , my attorney told me I had to continuet make my same payments. I used my unemployment income untitled I found work

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

Re: Journey through Chapter 13

Check with another attorney.  Your attorney's payment is included, which is why your attorney doesn't want you to switch to a chapter 7 or change the budget.


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