topic Re: How has your like changed in a Ch 13? in Bankruptcy

How has your like changed in a Ch 13?

jetsfan2013 — Mon, 28 Apr 2025 11:10:52 GMT

This question is for those who are currently in or recently completed a Chapter 13. As you reflect, how did the case change you, your relationship with money, your relationships (personal and professional), etc.?

I recently sat down and reviewed where I stand in my current case, and am optimistic I will be able to complete my case one year and 3 months early. Seeing the finish line, and the opportunity to live a life debt-free with mistakes from earlier in the decade behind me inspires me daily.

My relationship with credit has changed quite a bit, from "needing" unsecured credit to living within a zero-based budget. Family relationships have strengthened, new hobbies have formed, and old friendships (and habits) have fallen by the wayside.

That is where I am. What about you?

That is my story. What about you?

Re: How has your like changed in a Ch 13?

Horseshoez — Mon, 28 Apr 2025 11:33:59 GMT

@jetsfan2013 wrote:
This question is for those who are currently in or recently completed a Chapter 13. As you reflect, how did the case change you, your relationship with money, your relationships (personal and professional), etc.?

I recently sat down and reviewed where I stand in my current case, and am optimistic I will be able to complete my case one year and 3 months early. Seeing the finish line, and the opportunity to live a life debt-free with mistakes from earlier in the decade behind me inspires me daily.

My relationship with credit has changed quite a bit, from "needing" unsecured credit to living within a zero-based budget. Family relationships have strengthened, new hobbies have formed, and old friendships (and habits) have fallen by the wayside.

That is where I am. What about you?

That is my story. What about you?

Congratulations on potentially finishing your plan early, I assume you are in a 100% plan; those of us who were in plans less than that were not allowed to finish early as any extra money was simply handed off to the creditors; the number of payments didn't change. In fact, even though I was in a 60-month plan, I had to make 61-payments because my Trustee wanted me to pay a few extra thousand dollars from a tax return.

As for how has my relationship with money changed, it isn't all that different compared to before or during my Chapter 13; the two largest differences are the rewards based credit cards I now have versus the non-rewarding debit card I used prior to my discharge, and the fact my income has gone up by nearly two and a half times since I filed in 2015.

As for relationships both personal and professional, yes, things have changed; there have been virtually zero changes to my personal relationships except the ones which would have happened regardless of my financial situation, professionally, yeah, big changes there. My former business partner of over 30 years spent me into my bankruptcy; I now work for a large multinational corporation, and if the stars align, I'll be working for one of the largest companies in the world by June, so by definition, my professional relationships have taken a different course had I not been forced to file.

Re: How has your like changed in a Ch 13?

coreyb80 — Mon, 28 Apr 2025 14:22:46 GMT

For me I had to learn things the hard way to appreciate where I am today. I filed 13 in 2016 and was able to obtain a solid a rebuild during the process with some reputable creditors. Problem is I also made more money from 2016 to 2023 and as a result thought that meant I could spend more. Needless to say, I ran up a crazy credit card tab along with missing some tax payments and now I'm back in 13 again as of February 2024. This go round, I've learned to live minimally and every want doesn't tranlate to a need. This go round I'm on a 100% payback plan. Like the OP I've learned unsecured credit is a luxury not a necessity. I have my Excel spreadsheet that I use monthly with my budget. Looking forward to being done with this before 50.

Re: How has your like changed in a Ch 13?

Horseshoez — Mon, 28 Apr 2025 14:30:26 GMT

@coreyb80 wrote:
For me I had to learn things the hard way to appreciate where I am today. I filed 13 in 2016 and was able to obtain a solid a rebuild during the process with some reputable creditors. Problem is I also made more money from 2016 to 2023 and as a result thought that meant I could spend more. Needless to say, I ran up a crazy credit card tab along with missing some tax payments and now I'm back in 13 again as of February 2024. This go round, I've learned to live minimally and every want doesn't tranlate to a need. This go round I'm on a 100% payback plan. Like the OP I've learned unsecured credit is a luxury not a necessity. I have my Excel spreadsheet that I use monthly with my budget. Looking forward to being done with this before 50.

Good for you, I was 57 when I filed, so yeah, I'll be working until I'm in my 70s to afford a comfortable retirement.

Re: How has your like changed in a Ch 13?

coreyb80 — Mon, 28 Apr 2025 18:05:19 GMT

Better late than never is the motto that keeps me moving! Here's to hoping retirement comes sooner than later!!

Re: How has your like changed in a Ch 13?

Horseshoez — Tue, 29 Apr 2025 03:30:40 GMT

@coreyb80 wrote:
Better late than never is the motto that keeps me moving! Here's to hoping retirement comes sooner than later!!

Probably later, or even later than later. In fact, for the last couple of months I've interviewed for a few new jobs; the one I want the most is with one of the largest tech companies in the world, and today I found out my application, and all of the notes from the half-dozen folks I've interviewed with, is being forwarded to the hiring committee; I should know in a few weeks.

Re: How has your like changed in a Ch 13?

coreyb80 — Tue, 29 Apr 2025 15:34:36 GMT

Great to hear! You'll get it!!

Re: How has your like changed in a Ch 13?

Horseshoez — Tue, 29 Apr 2025 16:17:53 GMT

@coreyb80 wrote:
Great to hear! You'll get it!!

Thanks @coreyb80!

Re: How has your like changed in a Ch 13?

Minimalist — Wed, 04 Jun 2025 00:38:21 GMT

I'll likely be filing in the next few weeks to a month.

First couple of months after filing will be learning to live off cash, budgeting accordingly, and building up savings and sinking funds to avoid debt in the future. Been using YNAB for budgeting, but this will allow me to use it to it's fullest extent.

- Build up several funds to provide a security blanket should things go wrong again, Checking Buffer (1 months expenses x 1.5, or about $6K if my calculations are correct), Cash Reserve (Non-Emergency Fund, for stuff that's still important, 3 months expenses x 1.5), and an Emergency Fund (6 months expenses x 1.5)

- Once my reserves are close to five figures, automate all my bills, and will probably look at obtaining one credit card and sticking with that for the forseeable future. Probably just use it for Gas, Online Purchases and whatever subscriptions I might have. Then use cash/debit for everything else. No worries with security since I use Apple Pay for 99 percent of all transactions, credit or debit.

- Get back to my Minimalist/Delayed Gratification ways and get my life back in order, get back to work, finish my degree and live again.

Re: How has your like changed in a Ch 13?

Horseshoez — Wed, 04 Jun 2025 03:05:13 GMT

@Horseshoez wrote:
@coreyb80 wrote:
Great to hear! You'll get it!!
Thanks @coreyb80!

Quick update, Google HR reached out to me today and verbally gave me my offer; I told them I'd accept the it without changes, and was told they'll have an official Offer Letter in my hands either late this week or early next week. It feels kind of strange being well past retirement age and being offered such a cool job.

Re: How has your like changed in a Ch 13?

Jeffster1 — Wed, 04 Jun 2025 08:36:40 GMT

@Minimalist wrote:
I'll likely be filing in the next few weeks to a month.

First couple of months after filing will be learning to live off cash, budgeting accordingly, and building up savings and sinking funds to avoid debt in the future. Been using YNAB for budgeting, but this will allow me to use it to it's fullest extent.

- Build up several funds to provide a security blanket should things go wrong again, Checking Buffer (1 months expenses x 1.5, or about $6K if my calculations are correct), Cash Reserve (Non-Emergency Fund, for stuff that's still important, 3 months expenses x 1.5), and an Emergency Fund (6 months expenses x 1.5)

- Once my reserves are close to five figures, automate all my bills, and will probably look at obtaining one credit card and sticking with that for the forseeable future. Probably just use it for Gas, Online Purchases and whatever subscriptions I might have. Then use cash/debit for everything else. No worries with security since I use Apple Pay for 99 percent of all transactions, credit or debit.

- Get back to my Minimalist/Delayed Gratification ways and get my life back in order, get back to work, finish my degree and live again.

If you are not in a 100% plan, your trustee is likely to come after you for an increase in your monthly payments if they see that you are saving relatively substantial sums of money,

Re: How has your like changed in a Ch 13?

Minimalist — Wed, 04 Jun 2025 12:41:19 GMT

@Jeffster1 wrote:
@Minimalist wrote:
I'll likely be filing in the next few weeks to a month.

First couple of months after filing will be learning to live off cash, budgeting accordingly, and building up savings and sinking funds to avoid debt in the future. Been using YNAB for budgeting, but this will allow me to use it to it's fullest extent.

- Build up several funds to provide a security blanket should things go wrong again, Checking Buffer (1 months expenses x 1.5, or about $6K if my calculations are correct), Cash Reserve (Non-Emergency Fund, for stuff that's still important, 3 months expenses x 1.5), and an Emergency Fund (6 months expenses x 1.5)

- Once my reserves are close to five figures, automate all my bills, and will probably look at obtaining one credit card and sticking with that for the forseeable future. Probably just use it for Gas, Online Purchases and whatever subscriptions I might have. Then use cash/debit for everything else. No worries with security since I use Apple Pay for 99 percent of all transactions, credit or debit.

- Get back to my Minimalist/Delayed Gratification ways and get my life back in order, get back to work, finish my degree and live again.
If you are not in a 100% plan, your trustee is likely to come after you for an increase in your monthly payments if they see that you are saving relatively substantial sums of money,

Forgot to mention, in my case it'll be a 7. No worries!

Re: How has your like changed in a Ch 13?

Horseshoez — Wed, 02 Jul 2025 12:10:45 GMT

@Horseshoez wrote:
@Horseshoez wrote:
@coreyb80 wrote:
Great to hear! You'll get it!!
Thanks @coreyb80!
Quick update, Google HR reached out to me today and verbally gave me my offer; I told them I'd accept the it without changes, and was told they'll have an official Offer Letter in my hands either late this week or early next week. It feels kind of strange being well past retirement age and being offered such a cool job.

And one more update; there was a management shakup shortly after I got the verbal offer so everything was put on hold; it took another three weeks to get the offer letter. I start in a few weeks.

Re: How has your like changed in a Ch 13?

Horseshoez — Thu, 10 Jul 2025 11:37:04 GMT

Two more days at my current job, the amount of work they are piling on me is a bit stressful; cannot wait until tomorrow night when I ship their laptop back to them and then take a week off. I start at Google on the 21st.

Re: How has your like changed in a Ch 13?

TheCloudX2 — Fri, 18 Jul 2025 14:05:18 GMT

Congrats @Horseshoez for your new role!

@jetsfan2013 this is a great quesiton. My wife and I filed Ch13 in May. We've made two payments so far. Although we filed in May, we've been living as if we were in BK for several months (lawyer took months to file) via a strict budget. Although being in BK is stressful in its own way, the freedom this has given us is hard to adequently state. Long story short, after lay offs for both of us and new jobs, we were negative every month and miserable. We tried working two jobs, but that just exhausted us and barely kept us afloat. Now, we're finally not having to chase our tails and can breathe.

We're saving money, not spending money. Our lawyer worked to get us approved to apply for a $500 secured credit card which I plan to try and obtain in September. This will just be for rebuilding credit only as we want to be able to buy a home once eligible. We have financial goals and have broken it down to monthly and yearly. We're actively learning how to enjoy life without buying "just things". It's been life changing and the weight off our shoulders has been a life saver. Before BK, we both struggled with depression, but since filing that has drastically improved. That in and of itself has made it worth it, let alone the relationship with money.