Chapter 13 Creditor Balances

[Ladyluvvy]

Hi all 

I'm trying to decide between a Chapter 13 and selling my house to pay off creditors. It's very iffy if I would be able to make the required payments without my sons help. 
of course I'd rather not burden him. It's literally burden him with payments or burden him with where his Mom is going to live.

A huge factor is what will the balances be that I have to pay in the chapter 13? Are they the balances today including fees & fines, etc. Or are they when I made the last payment, or does my trustee negotiate on my behalf at all?

It makes a huge difference in whether I can do it or not.

Is your ability to pay taken into consideration as far as reductions in balances?

[TRC_WA]

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@Ladyluvvy wrote:

A huge factor is what will the balances be that I have to pay in the chapter 13? Are they the balances today including fees & fines, etc.

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My Ch 13 included my previous car which was obviously 100% paid in full over the course of the plan.

The unsecured CC/loan debt was paid off about 35% of the total amount... the rest was discharged after 5 years of payments.  

My monthly Ch 13 payment was basically my pre-filing car payment amount plus an additional $350 or so per month which went towards the unsecured CC/loan debt as well as attorney fees and court costs.  All of it was combined into the payment.  There was no pre-filing lump sum payment like you get with a Ch 7.

[Lurker22]

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@TRC_WA wrote:

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My Ch 13 included my previous car which was obviously 100% paid in full over the course of the plan.

The unsecured CC/loan debt was paid off about 35% of the total amount... the rest was discharged after 5 years of payments.  

Like you my car was 100% (anything secured is I believe), unsecured are getting around 19% I believe (I know it's under 20%)

[TRC_WA]

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@Lurker22 wrote:

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Like you my car was 100% (anything secured is I believe), unsecured are getting around 19% I believe (I know it's under 20%)

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I had about $75k unsecured debt... and paid back about $26k...  so it was right around the 34-35% that I mentioned according to my napkin math. 

I dunno... I didn't question it I just paid it.  Everything is more expensive here so if other places are 20% that's not a surprise.  My brother in Georgia pays $50 a year to put plates on his car... I pay $800 a year to put them on mine.

[Ladyluvvy]

Thanks. I moved to North Carolina from Oregon and everything is so different here. My biggest creditor got a judgement with fines & all is 8k. I have finally got a little money and can offer them 2k. Is it worth doing or should I save it to pay another creditor. I don't care about my credit score just don't like lien.

[Ladyluvvy]

Thank you so much for answering. Was the unsecured debt percentage on the collection agencies latest high balances including fees/fines/ inflated interest rates .etc or was it on amount due when you stopped payments

[Ladyluvvy]

Good morning and thanks for your reply. 19% of the latest high collection amounts or 19% of the original debt amount when payments stopped? I'm very encouraged by 19%.

[TRC_WA]

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@Ladyluvvy wrote:

Thank you so much for answering. Was the unsecured debt percentage on the collection agencies latest high balances including fees/fines/ inflated interest rates .etc or was it on amount due when you stopped payments

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It was everything due when I filed... which was accounts I had and a few collection agencies.  They all got a slice of the payment pie.

[krielly]

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@Ladyluvvy wrote:

Good morning and thanks for your reply. 19% of the latest high collection amounts or 19% of the original debt amount when payments stopped? I'm very encouraged by 19%.

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The percentage of debt you will need to pay back in a Chapter 13 is unique to your situation and you can't compare it to what others have experienced. Your payment will be based upon your "disposable income". This will all be based upon the budget you submit showing all of your monthly living expenses. A good lawyer will help you draw up a reasonable schedule which will help ensure you can meet all of your monthly obligations including your BK payment.

Have you had any legal consultations? Most are free. I would suggest at least 2 or 3.

Karen

[Lurker22]

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@TRC_WA wrote:

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@Lurker22 wrote:

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Like you my car was 100% (anything secured is I believe), unsecured are getting around 19% I believe (I know it's under 20%)

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I had about $75k unsecured debt... and paid back about $26k...  so it was right around the 34-35% that I mentioned according to my napkin math. 

I dunno... I didn't question it I just paid it.  Everything is more expensive here so if other places are 20% that's not a surprise.  My brother in Georgia pays $50 a year to put plates on his car... I pay $800 a year to put them on mine.

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LOL - yes, I'm very glad to be in GA

Also very glad to be counting down the last 6 months, this inflation is getting crazy - feel bad for anyone midway through