Ch 13 on the horizon...

[tpayne105]

Hey friendly folks

I made the call and went and discussed with an attorney regarding my situation.  I live in Texas.  I actually liked him and he was very thorough in describing things.  I have a mountain of paperwork I am starting to go through.  For those that have done this, you know what I am talking about.  I have a mortgage that is behind and an auto that is also behind.  I am going to keep them.  My biggest debts are unsecured payday/signature loans (over $15000---don't get me started), three unsecured credit cards (roughly $4000), and the house ($8000 behind) and the car ($687 behind).  My regular payments are $1200 with the house and $400 with the car.  My annual salary is roughly 70000.

My questions to you (and I will follow up when I go back for the "bring back meeting") are:

1.  In regards to the monthly payment one makes to the Trustee....I have read about conduit payments (which actually sound good on paper).  That would be the full amout on the car and mortgage right?  Those in addition to paying out the other debts.  How do they finally settle on how much per month of the other debts get paid into the monthly Trustee payment?  Is it a percentage of each?  The attorney mentioned to me that the payment I would make monthly would be it...no mortgage or car payment and I would keep the rest to pay monthly bils, etc..  I should have asked but was overwhelmed at everything.  Does anyone know the answer?  

2. I have read about the cramdown for a car over 2 1/2 years old.  Mine is a 2012 with 104000 miles..It luckly runs great.  But does that qualify for the cramdown.  Is that something that would automatically be consided in my case?  

3.  If I have a secured card with a balance of zero, will I be allowed to keep that card?  

This is all new.. Granted I have researched so much leading up to my meeting this past Monday.  I meet with them again next Tuesday when I take all the paperwork back. 

This forum has been great over the years.  I haven't posted in a while but now was the time.  I appreciate everyone of you!!!  Looking forward to hearing back...

[Anonymous]

1.) Our trustee required conduit payments for everyone. The car and mortgage were added into the lump sum monthly payment. I don't know how they calculated the amount or figured the monthly payment that they sent to the bank, but it was nice not worrying about it. I was also nice not having to deal with the bank. In my experience, once a bank learns that you've filed a Chapter 13, they really don't want anything to do with you. They take whatever the trustee decides to pay them and they shut up.

2.) This depends on the fair market value of the car, your interest rate, loan balance, purchase date, etc.

3.) Most banks will close your card accounts when they learn you filed bankruptcy, and you aren't supposed to accrue debt during a Chapter 13 without the trustee's permission. My lawyer specifically told me tha our trustee would not like the idea of someone in BK13 using a credit card, and the banks closed them all anyways.

That all said, trustees vary a lot in how they prefer to treat their debtors. In my experience, a good lawyer thinks of all these things and does them automatically. Our lawyer had done enough bankruptcies that he already knew how the trustee preferred to do things and it all just kind of happened before our very eyes. After getting together all the necessary paperwork the rest was pretty effortless on our part.

[tpayne105]

Thank you Rissaroo.  Great comments.  

I know most here have experience with BK7, but does anyone else have anything to add to Rissaroo's great comments?  All advice is helpful....

Thank you!!!

Todd