Guys, I’m finally at a point where I feel I can share some positive updates. Background: salary $95k, $36k debt (10 consumer credit cards, 3 personal loans, 1 auto loan), mortgage (paid outside plan), $70k student loans (excluded from BK). No matter what I did, I could never seem to get ahead of my finances. Cards always maxed out, kept making shitty decisions, took out loans to pay back loans. Typical uneducated financial choices because I was never taught financial literacy. Didn’t have a dime saved either. Credit was around 540 at the time and tanking.
November 2024: I took the leap and filed ch. 13 after getting wrapped up in a debt settlement program that was a complete was of time and money. I’m sure this is the case with many of you – and if it weren’t for the BK stigma I would’ve gone straight to filing.
December 2024: Made first plan payment to courts, final paperwork still pending. $700 ish to trustee over 60 months. Plan included car payment but not the mortgage.
January 2025: 341 meeting of the creditors held via zoom. Lasted about 5 minutes. I may have said all of 20 words total.
March 2025: Received official trustee plan/schedule J, documents, etc. No changes to payments, plan, or dates. Continue business as usual.
I make all payments on time each month and I’m living a stable life for the year. Fast forward to now.
June 2026: Purchased brand new Mazda as old car was taking a crap. Worked with lawyer to amend plan docs and file a motion to incur new debt. My new car payment, adjusted expenses were able to offset my plan payments, reducing them from $700 to $70 – essentially walked out with a brand new car and no change to my bills. Credit score 671 (highest it’s been since before the debt settlement debacle).
I was terrified beyond belief of this entire process, what it would do to my credit, my reputation and blah blah but the truth is, if I hadn’t done this I would be scraping by still with all my cards maxed out to this day, crying about being broke even with a decent salary. My lawyer and his team have been phenomenal and I will say it does matter who you choose. I’ve seen people on this sub with extremely high almost unaffordable plan payments and that did worry me a bit. BUT my lawyer has really backed me on everything and made sure that everything I’ve done and will do is within my means. I know I still have some time left – just hoping to shed some insights for anyone who is on the fence. (Ps thanks to those who posted their experiences before me because yall are the ones who pushed me to turn the new leaf).
submitted by /u/Wear-Select
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