Journey through Chapter 13

[Math_Rocks]

Thanks, daisydvm. We dropped off our paperwork last night and we had just about everything that they asked for. (We have questions about a couple items.) Today is the 13th; I am hoping that we can file in two weeks, the 27th. Really hoping that this is realistic. 

I am also really hoping that they will come up with a reasonable income figure as I have been cutting way back on my second job and we cannot count on overtime at DH's work. He gets it when he gets it, you know? Plus, we just found out about a job here in town that DH is going to apply for and that would really "muddy" our numbers. 

Making this decision was so hard. Now I just wish we could get filed as quickly as possible and start moving on.

[Math_Rocks]

Well, it looks like the timing actually was realistic. We go to sign papers on Monday and, depending on if there are any changes made, we should be filed by the end of next week. I know we will see all the numbers on Monday but I am still anxious to know exactly what our payments will be and what kind of income figure they arrived at, i.e. did it include overtime from DH or income from my second job (that I haven't worked at in a month now). Guess we will see.

[FrugalRican]

Still hoping for the best with you guys. Keep filling us in on how it is going.

[WhirledPeasPlease]

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@Math_Rocks wrote:

Well, it looks like the timing actually was realistic. We go to sign papers on Monday and, depending on if there are any changes made, we should be filed by the end of next week. I know we will see all the numbers on Monday but I am still anxious to know exactly what our payments will be and what kind of income figure they arrived at, i.e. did it include overtime from DH or income from my second job (that I haven't worked at in a month now). Guess we will see.

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I am SOOO close to you in this process.  I just completed the online counseling course and we're expecting to file on Friday.

I feel your pain -- let's just get this going and onto the trustee to see if our plan is approved.  

I'm not good with patience either, LOL!~

[Math_Rocks]

Whirled, I'm not happy that you are facing BK like us but I'm glad not to be going through this alone. Are you filing Ch. 13 as well? May I ask what led to the filing?

I'm so impatient for Monday and to know all the particulars of our payments, budget, etc.

[WhirledPeasPlease]

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@Math_Rocks wrote:

Whirled, I'm not happy that you are facing BK like us but I'm glad not to be going through this alone. Are you filing Ch. 13 as well? May I ask what led to the filing?

I'm so impatient for Monday and to know all the particulars of our payments, budget, etc.

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Yup, 13..  

1.  I built a house in 2008 and had plenty of money in the bank..  until I had my old house not sell and set vacant for a few months.  I wasn't quite underwater, but within a year I would be, as I had to rent it and ended up losing about 200/month on it b/c of increased taxes and insurance.  Their rent basically covers the house payment, nothing more.

2.  I incurred debt as I was trying to juggle what was left of my money (an inheritance from an aunt), while making sure I had a reserve in case anything happnened to the rental.  I went thru that and maxed out CC's.

3.  I have a HUGE student loan and altho I was able to defer it for 6 months to get things straight, I didn't get straight enough to handle the $500+ payment/month.

4.  I'm a teacher and in lieu of losing jobs and overcrowding our classrooms, we cut the budget by freezing any future raises and actually taking a pay cut two years in a row.  We also absorbed more of our insurance costs, so it was kind of a triple whammy.

My mother was trying to help me, but I realized after I missed the first mtg payment that I was on the path to disaster.  Like I said before, throwing good money at bad.

I was going to file today but my checkbook was AWOL and although my lawyer is about 10 min from work, he's about 35 from home.  So..  Monday's the day.

It is so interesting to see how he thinks I should live and budget my money.  He did not believe me that I live on $300 in groceries a month.  He didn't believe that  my entertainment costs per month were about $10 bucks.  I rarely buy clothes anymore 'cept for the obvious, and I definitely didn't need a budget of 50/mo for that stuff.

My charitable donations are in the form of gas money for driving rescue dogs once or twice a month on their road to freedom from euthanasia..  that's my entertainment!  I've been to one  movie in the past 4 years and I lived it up!!  Bought a matinee ticket, went with friends, found a $3 coupon off a drink/popcorn combo and I was set!  I'll do it again in 5 years.  LOL.

I do not fear this at all.  I told my lawyer's secretary today when I ran some stuff over, that I'm going back to my old days of totally living within my means and with cash.  On payday I'll go to the atm, draw out 200, and live off of it..  everything. except gas.  Meals, dog food, froceries and when it's gone, it's gone.  I fill up once a week on gas like clockwork during the school year, so that's 40 bucks a week that will be on the debit card, as I can't imagine paying cash for gas -- plus the temptation to buy something silly while inside would not be pleasant.

PS -- I saw your comment earlier about counseling, did you end up paying $500 bucks?  I took an online class for 11 bucks -- checked to make sure they were approved by the DOJ for my district, and got my cert. today.

[crazynurse123]

I'm also in the process of Ch 13, my case should be filed at the end of the month.  I'm kicking myself now since I had looked into it several times, and years ago did a DMP that I wasn't able to complete due the paymetns being so high and job changes.  Its nice to know I won't be going through this alone.

[Math_Rocks]

Thanks for sharing your story, Whirled. Again I'm sorry that you are facing this but it is good to know that we are not alone in this. To answer your question, we paid $500 to retain our attorney and didn't pay anything additional to do the credit counseling; the cost for that was part of the $500. The rest of the cost of the BK will be rolled into the payment we make to the trustee. We still don't know what those payments will be but I'm afraid that we wouldn't understand that number anyways out of context of seeing the entire budget that they set up for us. I know I just need to be patient for Monday and then I will understand the whole picture.

I have a lot of student loan debt as well, over $75000. What do you teach? You can probably see by my handle what I teach. 

Sounds like Monday is a big day for both of us. Glad that you are aat peace about it. I am too for the most part. I am sad that it came to this but I trulyy believe that our lives will be better as a result.

[Math_Rocks]

Thanks for popping in, crazynurse! Sorry that we meet under these circumstances but glad that we can make it through this together. May I ask what led to filing in your case? 

You probably read that we too were in a DMP. In fact, we paid more than $20000 in credit card debt over the past two years. But the payments were too high and we were putting that payment before everything else, including our mortgage, and falling further and further behind, We decided we need to take care of our family first. It was a hard decision but I believe it was the right decision.

[crazynurse123]

In my 20's I made a great income doing travel nursing, but when it came time to settle down my income dropped, and I finally began to pay housing costs myself rather than receiving it as a benefit of my company.  I also have a few years of back taxes due that great income, with nothing to deduct (ie house, children, yadda yadda). Add to that school loans and a few medical bills and it seems like I can't keep my head above water.

My biggest worry is with a 5 year repayment plan doing Ch 13, will I be able to rent a home or purchase a home in the near future.  Currently my boyfriend and I are busting out of my one bedroom apt, seeing as we have 3 dogs and 1 cat between us.