Meeting with Lawyer

The meeting with my lawyer was basically a meeting to make sure that I understand what the plan is and to answer a few of my questions.   However, it is still very scary!

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What happens if I get sick or lose my job in a Chapter 13?

Answer:  My lawyer would go back to the court and modify the BK to ensure that the payment can be made.  This would be no added cost out of my pocket.

What if there is a huge condo “special assessment” that I can’t pay?  Or a law suit?

Answer:  Then they can put a lien on your home.

What if I get a raise?

Answer:  If it is more then 8 or 10% there could be a change in the payment, an increase.

What if I save and save and have enough to pay off the BK in 4 years instead of 5?

DO NOT do that.  It is just opening a can of worms.  They will take the payment and expect you to continue to make the payments for the remaining year.

My lawyer also mentioned that as things change in next couple years, for instance when my daughter doesn’t need childcare anymore, those funds could be put towards the BK.  Bummer.

I learned that the payment is not static, it could change.  I sure hope that it doesn’t!

He also mentioned that I don’t have to pay my student loan while going thru the BK.  But I intend to keep up that payment.  To me, the whole reason to go thru this next 5 years is to be almost debt free at the end.  I do not want that sitting there waiting for me!  What a waste of time that would be!

In the next couple of weeks, I will get my home appraised and then we file.  Then we then head to court for the first time.  The trustee will have to approve the plan.  They can say no!  They can say she can pay more or make it difficult.  I am hoping they don’t.

It is important that I get this payment plan underway!  5 years, SIXTY PAYMENTS is the time it takes to make a car payment.  I can do this!  Right?

If anyone reading this has done or is doing a BK 13, talk to me!   I sure can use a friend!

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2 thoughts on “Meeting with Lawyer

  1. I can’t give you any advice specific to a Chapter 13 (mine was Ch 7) but wish you luck on your 5 year plan. Our attorney totally advised against a Chapter 13. She explained that most people are not able to stick with it over 5 years, as other money issues usually always come up during the 5 years and most all end up having to go back to court to revise the plan – which costs more money. Her advice was to do a Ch 7 and be done with it, not drag it out 5 more years. I don’t know your asset situation, but we were able to keep our home, cars and everything. The fact that property values had plunged and we were now underwater is what made the difference of being able to fall within the assets allowed to keep limits. Hopefully your Ch 13 won’t take as long as our Ch 7 did – and you’ll be working on your 5 year payment plan soon! It always nice to have things decided and a plan, not matter what it is.

    • Hi there!
      I appreciate any and all feedback, and any BK is difficult! So I thank you! I flip flopped between the two for many reasons and then decided that if I was going to do a BK I might as well get rid of ALL my debt. I have a second as well as a HELOC that I could never pay off any other way.
      I am underwater on the first, so I am able to do what is called a “lien stripping” that will get rid of the other two mortgages and at the end of 5 years, I will only owe on my first and be completely solvent. My mortgage on that and the HOA will be lower at that time then what rents are in this area.

      Because of that huge secured debt I decided the 13 would be the way for me to go. It will help me go into my 60s with less debt over my head and then as I approach a fixed income I will still “hopefully” be able to make the payment on my mortgage. Eventually being able to leave something for my daughter!

      This has been a very difficult decision for me and the cards are stacked for sure. But it is the amount of a car payment and is doable if I am super careful.

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