My wife and I are filing a joint Chapter 13 in Indiana on April 1st. Based on our math and our lawyer’s initial look, our plan payment will be $1,700/month for 60 months, which will be a 100% repayment plan.
While we’ve accepted the budget, we’re trying to understand the “cans and can’ts” of life during a 5-year 100% plan. Specifically:
Building Savings: Since we are already paying back 100% of what we owe, does the Trustee still monitor our bank balances for “excessive” savings? If we manage to save a sizeable emergency fund over 2 or 3 years, can the Trustee try to take that, or is our obligation capped since the debt is already being paid in full?
Travel: Are we able to take a vacation if we fund them entirely with cash from our “allowable” monthly budget?
Project Car/Hobby: I’m a car person and would like to buy an inexpensive project car to work on as a hobby. Is this realistic in a 100% plan, or does the court still view a “fun” car as an unnecessary luxury even though creditors are being made whole?
We aren’t looking for an easy way out, but we want to know if a relatively “normal” life is possible while we’re in the bankruptcy. Wanted to get peoples experience in a similar plan. I didn’t find a whole lot on these questions looking through the subreddit. Sorry if I just missed 50 other people asking.
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