Chapter 13 question
Date: Mon, 03/23/2009 - 07:22
How do you deal with unexpected stuff like car/house repairs, a hospital bill, etc ?
Chapter 13 question
Good question. I was wondering the same thing too. Anyone know. It's my understanding that they will garnish everything.
Is this true?
THAT is the Golden Question and the reason WHY many Chapter 13's
THAT is the Golden Question and the reason WHY many Chapter 13's fail...you enter a repayment plan, but it fails to take into consideration other bills that "may" come up...
A Chapter 13 computes what is "disposable income" and applies that to your current bills...home repair, car repair, medical bills - even costs to take care of the family pet - that are incurred during the 3 - 5 year BK plan are NOT part of your BK and you must find a way to pay them out of what is left for you to live on.
It is my understanding that if you already contribute to a 401(k) plan, then that is allowed. I am not sure about a regular savings account. (IMO - I don't think so.)
Of course, your attorney can probably explain this alot better than I can.
Hope this helps.
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no savings, and I was told if my 401k is volontary I have to sto
no savings, and I was told if my 401k is volontary I have to stop that too, all disposible income after living expenses are going to trustee... I aksed my attorney if I can enter accelerated mortgage plan and pay 1 month extra towards mortgage to repay it faster, I was thinking of minimizing my disposible incom so I pay to myself and benefit from it vs pay trustee and ofcourse was told can't do this
in my personal opinion entering BK for 5 years with budget calculated to pennies until you have "hiden" extra income is set up for failure, ask yourself how many times you looked at you income and said how it is possible that I have all this income and still short on money? have you ask this question yourself? so think how possibly can you live for next 5 years with budget not leaving you a dime?
but that is my personal opinion