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2nd Bankruptcy and chapter 13 questions

Submitted by amrulez on Wed, 08/05/2009 - 02:06
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I had a chapter 7 discharged 5 years ago but due to a family members crack problem I have been helping his wife to support their 3 kids and my money issues have resurfaced. I talked to my lawyer and we have decided to file a chapter 13 so that I can pay all my credit cards back in full without the crazy fees and interest rates over a 5 year period. I am not stiffing any of them , I did that once and can't live with that.

My questions about chapter 13

1)My lawyer said it is us who comes up with a plan to be submitted to the court for approval. I thought it was the trustee who decides how the money is distributed?

2) How intrusive into your life is the court as long as you stay on the payment plan? Do they come to your home or do you need to keep on appearing in court throughout the 5 year plan even if your on time with your payments?

3) Will i have to account for every dime I spend while being on the plan even if I make my payments on time every month?

4) Will the trustee look over my payment plan and tell us if its ok to start paying before we sit in front of him in court as I heard 30 days after submitting the plan you must make a payment and can't see how that is possible as you never sit in front of the trustee 30 days after filing from what I have read.

Thanks a lot for replying to my questions..My nerves are so shot I almost feeling like eating a bullet right now. I hate being in this position again and I hate the word Crack. It turned a great human being in my life into a maniac who doesn't care for me or his kids.


There is obviously a lot to know about this. I think you made some good points in Features also.


Submitted by on Wed, 08/05/2009 - 05:34

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Hello Amrulez,

I'd replied to your post but somehow it got deleted. I'm posting it here again. Hopefully this time it would stay, or someone who has taken the pain to delete it would prefer to post a reply to correct me if I'm wrong.


Now, here goes my reply....

I don???t know about your present financial status but IMO you should consider chapter 13 only if you can make the payments on time to the creditors. Failing to meet the financial obligation can further aggravate your condition.

Anyway, the court would set up the repayment plan based on which you would need to forward the payment to the trustee. The trust would then distribute the fund amongst the lenders. You only have to make the decision regarding the tenure of the repayment plan, i.e. three or five years.


Submitted by SC on Thu, 08/06/2009 - 03:04

SC

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