Posts: 6
Registered: ‎03-06-2007
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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