Hello Saving Advice Bloggers,
My name is T & my hubby's name is Jay.
We have just finished paying off our attorney's fees and will be filing for Chapter 13 Bankruptcy at the end of the month. I have been in search of some sort of forum to vent about this and finally I found www.savingadvice.com.
How did we get into this financial mess?
What a great question! As convoluted of a mess as we've been since before we met (probably stemming around when each of us turned the credit company's favorite age 18), it simply comes down to thinking available credit was available cash.
We are past blaming ourselves, each other, our parents, and the society we live in which happens to be very fast paced. At this point, "Keeping up with the Jones'" is not in our vocabulary. The words "Tighted up you belt" come to mind. That's the situation we will be put in starting August.
We could have been let off the hook of all our debt had we filed for bankruptcy before the laws changed in 2005. We would have been eligible for Chapter 7 full liquidation. "Free and clear" as I describe it. But we make too much money.
So here we are with the Ch. 13 Wage Earner's Plan. Basically, it's a consolidation loan/repayment plan.
For the next 60 months, our disposable income will go towards our debt. In the end we would pay less of the overall amount due and now we don't get those harrassment calls from the collections agencies.
I can only be positive and say that we are being responsible and paying our debts. We are looking towards the future and when we have kids it will be our fresh start.
Chapter 13 Bankruptcy
July 11th, 2007 at 05:33 pm
July 11th, 2007 at 06:22 pm 1184178121
July 11th, 2007 at 07:28 pm 1184182119
July 11th, 2007 at 11:47 pm 1184197644
How does the new bankruptcy work? Does part of the debt get forgiven? Or do they make the payment plan based on what you can pay?
Suppose two different people each had 250k in debt. Do both of those people end up paying say, $600 a month? Or does it matter what their income is? So if person A makes $60k a year, they will pay $600 a month for the 60 months but person B only makes $35K a year, so they end up paying $400 a month for the 60 months.
I'm not meaning to be nosy here. I'm just curious because my brother filed for bankruptcy last year but I'm not supposed to know about it and therefore can't ask questions. On this forum, however, we're all anonymous!
July 12th, 2007 at 12:52 am 1184201558
July 12th, 2007 at 07:38 am 1184225930
Hey! I just noticed your in the Southern California area. Howdy neighbor!
Don't worry...I have NO idea who you are in real life.
July 13th, 2007 at 12:00 am 1184284844