The Mistake You Must Avoid When Filing Chapter 13
Вставка
- Опубліковано 24 сер 2024
- Your Chapter 13 case is, at its core, a 60 month math problem. Under Chapter 13 law we have a maximum of 60 months (5 years) to pay back your debts under the many rules set out in Chapter 13 of the United States Bankruptcy Code.
As I note in this video, when I meet with a potential client I encourage that client to look at the next 5 years with “reality glasses.” Yes, you may get a bonus, extra pay from a part time job, or inherit money from an unexpected source. However, if you are sitting across the table from a bankruptcy lawyer, it is likely that positive financial events in your life have not happened.
You should proceed in bankruptcy with the assumption that you will be lucky if your income and expenses stay the same, but the more likely scenario is that you will have to make do with less.
Therefore, don’t look at Chapter 13 as a tool to maintain a set lifestyle or to keep all property. Look at Chapter 13 as a court supervised survival plan. Use the power of Chapter 13 to give up property you cannot afford, or to legally break installment contracts that will allow you to drive a cheaper car or live in a cheaper house.
Less than 50% of Chapter 13 plans make it the full five years and end up with the debtor receiving a discharge. Increase the chances of getting the full benefit of a Chapter 13 discharge by entering your plan with a sense of reality. #chapter13bankruptcy #atlantabankruptcyattorney #chapter13plan #bankruptcylawyeratlanta
===========FREE CASE EVALUATION==========
If you would like me to analyze your finances
please contact me at
atlanta-bankru...
==========================================
===============CONTACT ME=================
Jonathan Ginsberg
Atlanta Bankruptcy Attorney
Website: atlanta-bankru...
Facebook: / ginsberglaw
Telephone: 770-393-4985
atlanta-bankru...
===========================================
**Click Below to SUBSCRIBE for More Videos:
www.youtube.com...
I was upset that I couldn't find documents I needed to file chapter 13 today..then your video came into my UA-cam feed. You saved me from diving into a giant mistake! I backed out of it immediately.Thank you so much for sharing this!!
I made it through the 5 years and made my last payment, I'm in the closing end, Thank God, this was the longest 5 years, you were so right, you live on means, being disabled and single, they show no mercy in that monthly payment, it better be there, no excuses. I made two partial payments out of the large payment, this was thrown in my face everytime. Making 60 payments turned into 65 plus a pay off of 2900.00 extra. Be prepared, this isn't for everyone,
So quit your job and file chap 7! Got it
Update: So after calling a few law firms, I found an attorney that actually did the math over the phone with me and said I make slightly over the median for my county but he was able to make some deductions and qualified me. I even went in and too meet with him so could confirm what he said and showed me how he actually did the math. He basically used a database that caculated my debt and income. I'm just so happy I don't have to do the 13. He said he was glad too because he was going to send me to another law firm if I didn't qualify. He hates filing chapter 13. Thank God.
Yes, Ch. 13 cases are very difficult these days. CH. 7 is a far better option most of the time.
@@atlantabankruptcy, I was told if you were currently in a CH. 13, that if you could make payments for 3 years, you can have your lawyer relook at the bankruptcy case and see if you could pay off the remaining balance to get out of the CH. 13. Is this true?
I filled chapter 13 because I couldn’t qualify for chaper 7 and this has me paying 800.00 a month!!! Its fxkn crazy. It defeats the whole purpose pf me trying to get on the right track!!!! 800.00 per month for the next 5 years????? 🙄🙄😳😳
@@QueensFirst did you check for allowable living expenses?
@@QueensFirst I know just how you feel, I having 350.00 a month for 3 years. Have been paying since September 2022, basically living paycheck to paycheck
It's also tuff when you get pay raises they want more, just hoping it goes as planned
What you own ends up owning you
Man that's deep 💯💯💯
Yep!
I would think this would have more views seeing how transparent you come across.
People are afraid. And this guy is giving them a crock of bull shit.
Recently a judge dismissed student loans in a bankruptcy case is this the beginning of freedom
I really hate trustees they have a god complex thinking what they say goes I would appeal every thing they do if I don’t agree with their decision I am appealing everything u can tell I hate authority figures judges especially
If you owe 60k the max payment per month is 1k. If you have 5k in disposable income then you keep 4k
thank you for the truth. trying to save a house from foreclosure due to a divorce of a family member. however can not afford chapter 13 unless her income was consistent enough. i was hopeful to help her secure a home as she gets older but you put things in reality, though i dont want to lose family house without a consistent partner or 3rd party i cant afford it.
It seems the courts punish people for 13, but reward 7 which makes no sense. Getting rid of stuff doesn’t help because the court will just take more of your money if expenses go down
You hit the nail squarely on the head. The problem is the chapter 13 law itself. Not the poor citizen pleading for help!
I've been under a chapter 13 since 2015. I can see why most people are unsuccessful with a chapter 13. If I had to do all over again I would go with a 7. Most of my payment plan is a car note and the lawyer, however, it did bring my interest rate down to 4.75% vs. the almost 20% interest rate I was paying. Overall if you choose a chapter 13 stock up on jars of vaseline because the experience will not be pleasant😂😂😂 I'm toward the end now and I'm anxious to be done.
@@Wowyana I would check into the credit repair first especially if your income is too high to file for a 7. I was eligible to file for either one at the time however my situation became critical once a creditor took an old debt to court and then the next creditor jumped on board. It forced my hand. If I were you I would check into a credit repair program while you still can work with your creditors. I still have student loans and they get a portion of money during the Chapter 13 plan. Regardless after this 13 I'll still have student loans to repay in which I will have to consolidate after my Chapter 13 has been dismissed. My advice is to check all of your sources before making a decision to file. The Chapter 13 plan has it's benefits depending on your situation. I had a car loan with almost 20% interest prior to me filing. The 13 plan automatically brought my interest rate down to 4.75%. I repay my creditors 1% of what they ask for, but like I said it is totally based on your income.
@@Wowyana with a Chapter 13 they will take your disposable income. They won't leave you much wiggle room at all. I didn't realize how much disposable income I had before this bankruptcy. They actually garnish your paycheck for your chapter 13 payment too which is good in a way because you know your take home pay, but at the same time when emergencies come up ot can be crippling. You won't be allowed to have any credit cards throughout the plan and you won't have much room to save. I tell people all of the time don't wait until your back is against the wall to make a move. I wish you luck.
Ellisa Johnson hello, i have a question. Lets say they tell me my payment is 500 for the next 60 months. Do they just take the 500 or are they constantly looking and take more thsn what was agreed upon? I make too much for a 7 so the attorney told me I qualified for a 13 and that my payments woukd probably be around 5-600 monthly which im ok with cause ill still be able to save i just dont want them noticing exactly how much extra cash i have and them wanting all of it
@@ivanrivera5187 update?
I just filed for a CH13. My paralegal plan was to put me on a payment plan over $900 for 60 months, which was 87% of my current debt. Then I mentioned I didn’t want to move forward, he said he’ll talk to management, and surprisingly 5 min (literally) later he called me back saying they were able to reduce it to $476. I mean, is this technically legal? There’s no possible explanation for cutting half payment in just 5 minutes.
Did you check irs for allowable expenses?
@@DLRudder No. Long story short, I didn't continue with the CH13 because of my lack of trust in the lawyer. Then, I got dismissed. I guess at some point my options are try to settle with each creditor a lump sum payment for up to 30% of my debt. And ask to be reflected as paid in full as well as remove any remarks or anything negative from my credit report
@@dotnetspark can you tell me how you start do with settle creditors?
@@nguyenmallett7049 just call your creditor or collection agency. Tell them you want to settle the account for less than the amount owed. Tell them you cannot afford to repay the whole debt. They will give you a number, typically 40-50%. But you should definitely aim for 25-40%. Usually when you file for a CH13 the creditor will get just 25% back in a 5 years period, that's why I mentioned your aim should start at 25%. What you have in your favor is you have a lump sum to pay. So they have to decide whether let's assume 30% at once or 25% over the course of 5 years.
@@dotnetsparkbut you have to have the whole amount in cash - to pay that settlement all at once is what you are saying?
I want chapter 7 but I need to save .my house so I can live. It's hard to find a home for rent with bad credit.
If facing a 100% Chapter 13 Plan, wouldn't it be best to keep everything?
Yes! That is why this lawyer is so full of shit!
I would think so, shit doesn't make any sense
Do the credit card companies really take your furniture? What do they do with it?
Thank you
I filed for Chapter 13 in 2021, due to medical expenses. The trustee put me on a three year plan. I have six months to go in finishing my plan. I finally paid off the remaining balance that my attorney was owed.
Did you have any money left over per month or did they take all of it ?
Thank you for sharing the truth
Thanks for this video. Wish I would've seen it before I filed....
How much money do you have left after the payment?
Wish you were available in Florida
I thank you.
This is awful. Close to $100,000 in debt, my wife’s checks are getting garnished and she needs regular cancer treatments that come out of pocket. We are on the verge of being homeless
Chapter 13 works if ur in higher interests loans.
What can I do if my chapter 13 payment is too high! What can we do now?
Get a better lawyer.
A very informative Video message. Thanks. Out.
Glad it was helpful!
I am 30k in debt and debt settlement offers 12k which I can’t afford! I don’t qualify for chapter 7 because me and my husband are on the border for income. What other options do I have besides chapter 13?
401k withdrawal
Thanks
If you get rid of things, doesn’t that create more disposable income for them to take?
You ask a very good question that has a complicated answer. Short answer: it can but it depends on how your means test comes out, what chapter you file under and what your Schedule I and J budget look like.
And that’s the problem. Chapter 13 is designed to punish, not help.
So, a couple questions, I have a vehicle that I do not want to keep. I want to surrender it as I owe a horrendous amount more (about $12,000 more), than its worth and can’t sell it ($42,000). At the moment it is current. Do I have the ability to choose to surrender it in a 13, and if so does doing so alleviate the total debt on it? I mistakenly bought it after a chapter 7, about four years ago. As I understand it, I would have to wait four years from that bankruptcy file date to do a chapter 13. Also, does the 910 day rule apply if I want to surrender the vehicle? I know that’s a lot to answer and thanks in advance! 👍🏼
I don’t own a home or have a mortgage. I have very few or little in assets. I’d also be filing on some credit cards that have charged off.
The 910 day rule applies when you want to cram down the claim to the current FMV in a Ch. 13. If you surrender the vehicle in a Ch. 13, the deficiency claim would be an unsecured debt that is paid the same percentage as all other unsecured debts.
I’m needing to file and I live in Missouri. I got hurt and lost everything now can’t afford to pay it off or make payments because I’m paycheck to paycheck as it is. How can I go about this? Mine is vehicles and cell phone bills
I would look for a BK lawyer in your location who knows Ch. 7 and Ch. 13 law and procedure.
Chapter 13 will kill you. Don’t do it.
What happens to your wife’s assets if you married after having old debt
Just sent you an email. Thank you for the video!
my chapter 13 was dismissed after 1 year my attorney still wants me to pay $6000 for his work . Is he scamming me ?
The work in a Ch. 13 is front loaded so the attorney obviously feels that he/she was not paid for doing a lot of work. In my view, this is one of the risks you take in the bankruptcy law business. I would also note that $6,000 seems like a very high fee for Ch. 13.
There telling me my repayment plan will be about $1000 a month, if I can afford it , is the 13 ok to go with?
I think you need to look closely at your budget since Ch. 13 plans last 5 years. Can you live on this budget for the next 5 years?
Soooooo true!!!!!
I have a question, I just filed chapter 13 today my number 1 goal is to stop the wage garnishmen temporarily from student loan. I send the case number right away to our payroll department requesting to stop garnishment. But I remember our cut off payroll was yesterday October 15 and I just filed today October 16 for our October 21 paycheck. What if they tell me that they can't stop the garnishment for this coming payday because of the cut off
Chapter 7 is the way to go....and be done with it
If you can fit into Ch. 7 I agree it is the way to go.
Yeah if you qualify. I just found out that I make too much in the state of California. What the hell??!!
got to fit into this category or that sounds like bankruptcy is good if you actually have money if you make $200 a week its not enough cause they want all your money doesnt make sense your filing this because you cant afford life right now and need a break to get back on your feet
Decrease your income for 6 mos. can’t make over $ 4400 a month in. cali. Then file.
Toya Janelle what did u end up doing?
The problem is if you make over 50k they force you into a 13. I have to lose my job to get into a 7.
For an individual, yes. Here is the current median income table: www.justice.gov/ust/eo/bapcpa/20221101/bci_data/median_income_table.htm
@@atlantabankruptcy is there any way around that if you're over but really close to that dollar amount?
@@mosermotors Yes, the means test is actually a two part test. If you are below the median income table then you are eligible for Chapter 7. If your income is over-median, you proceed to the means test where allowable expenses may or may not reduce your disposable income to the point where you qualify for a 7 Many times, debtors whose earnings are slightly over median can qualify based on a full means test analysis.
@@atlantabankruptcy thank you so much for the information. You're awesome
@@atlantabankruptcy ok so I subscribed to you guys for the help. One last question, If with the means test I am able to qualify for chapter 7, what are the odds since I'm slightly over that I would be audited?
If your trying to save your home you have to file a 13
Correct.
I'm a creditor and the debtor (my neighbors whom I sued the pants off and won) just filed Chapter 13. They are trying to hang on to their weekly maid service, salt water fish tank service, pool service, and lawn service in addition to their 2 luxury vehicles. I have a lien on the house. After the hell they put me through in court only to have their a$$e$ handed to them, this gives me GREAT pleasure that Chapter 13 is not a pleasant experience.
Chapter 13, regardless of this, paternalistic, predator lawyer, is nothing more than debt slavery. Don’t do it!