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About to file Ch. 13

Member

About to file Ch. 13

Greetings, all.

 

I came to this forum last year under a different moniker (that which I forgot, so created a new one).  I was contemplating filing bankruptcy last year but did not do so; however, my husband and I just came from a local law office where we retained the service of an attorney and are about to file Ch. 13.  My husband filed before in the late 90s, so he's familiar with the process.  I, on the other hand, am not, but the paralegal with whom we spoke gave us the rundown.  We are expected to pay off all our debts in three years, which is good.   Our biggest problem was owing some back taxes due to some financial mishaps (like taking out both of our 401ks to move out of state--big mistake!) and other things.

 

 

I tried to mitigate things for as long as I could, but got to the point where I couldn't anymore.  I'm grateful that the debts will eventually be taken care of, but scared of the hit our credit will take.  I know it will take time and A LOT of hard work to rebuild and get our scores to 600+.

 

 

I am here mostly for support, to update our process, and to give support.  If there are any tips or things I need to know during this process, please advise.

 

Thanks!

Message 1 of 18
17 REPLIES
Community Leader
Super Contributor

Re: About to file Ch. 13

Hang in there! Things will slowly get better Smiley Happy

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
740 EQ FICO 06/2018
750 TU FICO 06/2018
741 EX FICO 06/2018
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Message 2 of 18
Member

Re: About to file Ch. 13


Scupra wrote:

Hang in there! Things will slowly get better Smiley Happy


 

Thank you!!!

Message 3 of 18
Established Contributor

Re: About to file Ch. 13

Get the 13 started,

 

adjust to your new reality,

 

take a break,

 

then start planning for the conclusion of your 13 at payment month "36".

 

 

At that time, the Trustee will tidy up things, and then a Discharge Order will be filed with the Court.


Then, like I recently did, start slowly with a plan, and be patient while it plays out.


Oh, there is no way to "hurry" the process.


Best Wishes!

05/03/16 Fico 8 Scores: EQ 546, TU 501, EX 548
09/01/16 Fico 8 Scores: EQ 662, TU 628, EX 657
10/04/16 Fico 8 Scores: EQ 692, TU 665, EX 686
01/15/17 Fico 8 Scores: EQ 706, TU 670, EX 687 * all Yellow / Good
Message 4 of 18
Highlighted
Community Leader
Senior Contributor

Re: About to file Ch. 13

Op....you have my full support....I know how hard this is. But you are already 2 miles ahead of many, you have found this site already. There is a mountain of info here to help you rebuild the right way. Keep your head up! 

AMEX PLATINUM, DELTA PLATINUM, DELTA RESERVE & SPG | PenFed PR | NFCU FS | Discover IT | CAP1 VENTURE | NORDSTROM VS l LOWES I MACYS I WAYFAIR I
Message 5 of 18
Member

Re: About to file Ch. 13

Update:  We will be having our 341 Meeting at the end of the month.  The good news is that a large portion of our IRS debt has been discharged, and all of our debts, student loans included, may be paid off in 4-5 years. The bad news is that we're paying a couple thousand-plus dollars each month to the trustee (based on our monthly income and expenses/disposable income ratio).  The only bills we will be paying are rent, car note, and car insurance.  It'll leave us with just enough for paying utilities and basic needs and maybe a few wants (like travel and entertainment)...maybe.   I am trying not to freak out, breakdown, or be depressed, but I am definitely not happy about it.  

 

I have two questions as per below:

 

What's the most anyone has ever paid for a Ch. 13?

I know it's too late now,  but would it have made more sense for us to both file Ch. 7s separately?  (I incurred the most debt, so maybe I should have gone solo and done a 7, but I thought it would be better for us to do the BK jointly).

Message 6 of 18
Established Contributor

Re: About to file Ch. 13

 


Anon092016 wrote:

 

Update:  We will be having our 341 Meeting at the end of the month.  The good news is that a large portion of our IRS debt has been discharged, and all of our debts, student loans included, may be paid off in 4-5 years. The bad news is that we're paying a couple thousand-plus dollars each month to the trustee (based on our monthly income and expenses/disposable income ratio).  The only bills we will be paying are rent, car note, and car insurance.  It'll leave us with just enough for paying utilities and basic needs and maybe a few wants (like travel and entertainment)...maybe.   I am trying not to freak out, breakdown, or be depressed,

but I am definitely not happy about it.  

 

* this is where you are at, not a lot of other choices which are considered POSITIVE.

 

 

I have two questions as per below:

 

What's the most anyone has ever paid for a Ch. 13?

 

* the most? "I PAID in FULL" to complete the process early.  $ ~ this is what I did (sold my left kidney)

 

** you either "do the Plan" over the full term, or Pay in Full.

 

I know it's too late now,  but would it have made more sense for us to both file Ch. 7s separately?  (I incurred the most debt, so maybe I should have gone solo and done a 7, but I thought it would be better for us to do the BK jointly).

 

You really don't get a choice if it is a Ch 7 or Ch 13, as it is based upon a Means test and your Income. With Trustee review & approval.

 

.


 

05/03/16 Fico 8 Scores: EQ 546, TU 501, EX 548
09/01/16 Fico 8 Scores: EQ 662, TU 628, EX 657
10/04/16 Fico 8 Scores: EQ 692, TU 665, EX 686
01/15/17 Fico 8 Scores: EQ 706, TU 670, EX 687 * all Yellow / Good
Message 7 of 18
Member

Re: About to file Ch. 13

Thanks for your reply, Sebastian503, and highlighting some points I need to take into consideration.  I'm still feeling like "W-T-F did I just do?!", but I'm sure a lot of people feel that way when filing.

Message 8 of 18
Frequent Contributor

Re: About to file Ch. 13

My wife and I filed in April 2010 and it was discharged March 2015.  We paid 100% of our debt with exception of a school loan for one of our kids that I barrowed for them.  We continue to pay it once the BK was complete.  I don't remember what we paid each month to the trustee but I'm pretty sure it was around $2K a month.  Just remember that filing for a BK is not the end of the world, just learn the lessons on why you had to do it and make sure that all your payment s are made on time if they don't choose to do a payroll deduction.  Best of luck to you and your future.

12/27/16 - Eq683 TU666 Ex681 04/05/17 Eq742 TU763 Ex757
Message 9 of 18
Member

Re: About to file Ch. 13


oldman425 wrote:

My wife and I filed in April 2010 and it was discharged March 2015.  We paid 100% of our debt with exception of a school loan for one of our kids that I barrowed for them.  We continue to pay it once the BK was complete.  I don't remember what we paid each month to the trustee but I'm pretty sure it was around $2K a month.  Just remember that filing for a BK is not the end of the world, just learn the lessons on why you had to do it and make sure that all your payment s are made on time if they don't choose to do a payroll deduction.  Best of luck to you and your future.


 

Thanks, oldman425, for your reply.  I just thought our case was unusual for the amount we have to pay out each month to the trustee, but I see it's not.  Glad that you're now on the other side (of your BK).  Looking forward to when it's our turn!  Smiley Happy

Message 10 of 18