Extremely Nervous!!

Hello All - This forum has been so helpful but I am getting so scared because I am closing my bank account tomorrow. I have so many payday loans (storefront and internet) and have been trying to keep my head above water but it just not possible anymore. I met with a bankruptcy attorney today and I am going to begin Chapter 13 and I will get to put these loans under this plan. I will be sending all companies a revocation letter which also gives them my attorney's info. My questions is what else do I have to do to ensure they don't call my work. I am in sales so I am usually on the road and am just so scared they are going to call the office and let them know my business. Any advice? Thanks Everyone!

Use the no contact sample letter in the home page.....I did and never received a call. Just make sure you send it certified mail.

You should actually be taking a big deep breath and relaxing....the chapter 13 will relieve the stress.

It is a relief but I am still freaking at the thought of these guys calling my work. Do you know if they can send a wage assignment to my employer if I revoke it in writing? I am going to send a ACH and wage assignment revocation and a no contact letter. Am I missing anything? Thanks Everyone!

Just be sure to send out the no contact letter and as soon as possible. How does the chapter 13 bankruptst work now? I know they had made some changes to it.

I have to put together a list of all debts ie: credit cards, payday loans, medical bills and my attorney will come up with a monthly figure of how much I will have to pay. It sounds like he will file within 30 days and once that happens, the bankruptcy courts will contact all debtors. I have to hold them all off until that happens.

Bethwiso,

Just make sure you include all of the payday loans(storefront and internet). Once your attorney is retained, let your creditors know that and have them contact your attorney.

If you don't mind me asking, what storefront and internet payday loans are you dealing with?

I went through the same situation as you, and believe me, it was a relief when I filed my Chapter 13.

When you told the PDL's that you had filed chapter 13 how did they react - did they stop calling you at home and at work?

Yes they did

Do you mind me asking how much it is costing you to file Chapter 13?

I have to come up with the retainer of $1,000. Then they will role the rest of the costs right into the payment plan. I believe other attorneys will do it differently if you have trouble coming up with money - I think some will roll all of it into the plan. I belive the total is around $3500 when all is said and done.

I paid a total of $3000 for my ch 13. I had to pay $500 out of my pocket to retain my attorney. Then of course I had to pay the filing fee for my case to be filed, which was like $274, or something like that. The other $2500 was put into the plan, and the trustee pays your attorney from the payments that you make to the trustee. Once the plan is confirmed, your attorney is paid first, meaning all payments go to your attorney before any secured, and unsecured creditors are paid.

So from what I understand is if you are set up on a repayment plan for like $500 a month the atty gets every payment until his fee is paid and then the others will get their money? I can not believe how expensive filing Chapter 13 is. i never dreamed it would be this amount!

There is a lot of paperwork and follow up involved in a chapter 13, thus causing the high prices. However keep in mind you are most likley going to end up paying all your creditors pennies on the dollar. So in the long run you are going to save big bucks.

I filed bankruptcy over 15 years ago when my first hubby died if kidnay cancer. The bills and medical costs were drowning me. I only paid $500 to do everything back then. I could not have imagined if I would have had to come up with over three thousand. I was a single mom and had no direction at the time.