Chapter 13

[Anonymous]

Just finished my installments on a 3 year plan. Very glad I did it, was it easy ? NO. Was it doable ? YES

Did you feel you had enough money to live? First year not really, it was tight. got a pay bump 2nd year and reported it as required. installments did not go up at all so my life got much better at that point.

Were you able to purchase any presents or take any vacations? yes within reason, remember you are still paying off a chunk of the money you already spent...

Does the Trustee re-evaluate through out the payment plan? You have to let your lawyer know any time you have a substantial change in income and you have to submit your tax returns each year. this keeps the trustee informed and he will make choose what to do with that info....
I’m struggling emotionally with all of this. its a tough spot to be in but you need to own it and push through it, lots of people get half way through and give up... don't! it gets better

[Anonymous]

Good Morning,

I hope this message finds you well.  I'm so happy to see this post, there aren't many chapter 13 stories here on the forums.  I make my 1st payment on 4/17.  I wasn't happy about filing chapter 13, I wanted to file chapter 7, but... it is what it is.  My MOC meeting is scheduled for 4/27 and confirmation hearing is 6/11.  Once I'm confirmed I will dispute any errors on my reports.  I asked my lawyer to ask the trustee to allow me to get a secured credit card.  We shall see what the trustee says.  I appreciate you posting your chapter 13 stories.  Better days are ahead 

[tehdrizzle]

Filing Chapter 13 was the best decision we ever made.  We were afraid we would be completely strapped and have no cash for anything.  We actually had more cash in our account during the bankruptcy than we had paying our debt directly!  The only thing I find annoying about filing is how long it takes for it to actually close.  We made or finaly payment in December and we haven't heard anything past the final cure notification which was sent out in December so our case is somehow still open and active.  In short, it can take several months 6+ from what I'm being told for it to close after your final payment.

[Anonymous]

@tehdrizzle - Thank you for replying.  Did you obtain any credit during your payment plan?

[Anonymous]

I obtained a 500$ credit one bank card 2nd year in to start rebuilding. My lawyer told me keep new credit under 1000$ so the trustee don't throw a fit . After 6 months of proper use and payment they bumped me up to 1000 without me asking 

the next month they sent me a Preapproval for $1500 card, I tossed it out knowing that I had to stay with just the one card till discharge.

they still keep sending me the preapproval for the 1500 and I still throw it out. 
I just got my notice that my final checks have cleared and should be close to discharge now. 60 days or so I hope 🤞🏻 

[tehdrizzle]

@Anonymouswe did not obtain credit during the Chapter 13 process.  If you need to obtain credit during the process you'll need to get permission from the court via your Attorney and Trustee.

[Anonymous]

Hi, I recently got through my 5-year BK13 and have gotten to the light at the end of the tunnel. 

Like other posters said, it's important to have a good attorney who communicates with the trustee so that you stay on track. 

To answer your questions:

- I saved like mad after filing (>20% of my salary mostly into my 403b), so it felt a bit rough at times, but it was plenty to live on. 

- Definitely had money for presents, vacations, etc. But I kept it modest. You don't need to spend a lot to enjoy life. During the 5 years, I was not allowed to make payments on student loans outside of the plan, so I knew 7% interest was growing on my >100k of student loan debt. One of the reasons I saved like mad, so I could make a big payment on them as soon as I got discharged.

- The trustee doesn't re-evaluate unless your situation changes a lot. Getting a big raise, getting a mortgage or new car, moving, etc. If a large financial change is expected (or if you don't know if it's a large change), you need to talk with your attorney to figure out if the trustee needs to know. 

- Getting through a bankruptcy is not easy. Before filing, I had perfect 790+ credit, no lates or negative history on my file. It was a huge blow to my pride. I thought people would look at me as a failure in life. But you don't walk around with a huge sign on your head that says "bankruptcy." It's something you go through, but the goal is get to a better point financially. It's been a humbling experience. I grew from it and my financial situation is much better now than it was. I was able to save for retirement and paying down debt, am no longer insolvent, and am actively rebuilding to get back to the credit I had, with stronger money habits than before. 

You can get through this. Hang in there!