We have filed Ch. 13, paying out a significant amt. each month to our creditors. The lawyer said we aren't "supposed" to have any money leftover a month after that payment and living expenses, but that sometimes there is. We understand can't have a savings account, nor can my spouse participate in his 401k, but if we happen to have that *little* extra a month, how do we save it? Is under the mattress the only option??? Can we just leave it in the checking? Do they do a periodic check of that and can determine we have "too much money" and can give more toward the BK payout? Can we give it to someone - like a parent or sibling - to start a savings FOR us, or is that a no-no, legally speaking? My worry is that if I have it lying around the house in CASH, it won't stay there long.. I want to make sure I do things right this time and make a savings, not just squander it. Any help would be appreciated, thanks.
Hi anniezoe I wouldnt worry about it. I went thru the same thing as you and the only thing the lawyer told me was to take my money out of the bank so they couldnt try to seize it. That was probably because one of the loan accounts I had was at the same bank. Dont sweat it. The court puts you on a set payment and they never ask for a larger payment. They must allow you extra money to live on, clothes, food, utils, transportation. I will say its a good idea not to have a savings account, but you must keep a checking account. Dont live scared with this situation, because I have already done it for you, trust me. My best advice to you is to finish your chapter 13 till discharged. For now just dispute, dispute, dispute. I got lucky and the BK went away on Equifax, it never got posted on TU. And it stayed on the full 7 years on Experian. The only way things are gonna be normal again is to complete this thing, stay out of debt, and keep disputing the baddies till they are gone. If you have any questions just let me know and we can do some emails. Best of luck SS
