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!
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!