Chapter 13 Filed - What's Next? Scared

This is my first post here and I’m really scared. I filed Chapter 13 BK, it was confirmed recently, a 100% repayment plan. I self reported it. I actually have more money now and I’m not stressed. What precipitated the filing was a rental house I owned in South Carolina. I rented it out instead of selling it due to the market crash of 2008. It never recovered value and the renters totally destroyed the inside of my house. I had a repair estimate completed and it was well over 11k. I struggled mightily paying 2 mortgages for a while but finally I had to stop. I was fearful of losing my clearance. I moved to begin with because I was driving over 200 miles a day to the only job I could find. So, I was able to complete a compromise sale and received a deficiency waiver. Some of my accounts, all around the same time went negative for 60 days max. I have 5 children and my wife is a stay at home mother. I hope DoD doesn’t fire me. I suffer PTSD and I can’t sleep or eat much. I am very worried. I’m a DoD civilian with fully successful performance. What’s next after I report it? A meeting with an investigator? I have every email, photos and all evidence. Should I hire a lawyer? I probably can’t afford one.

The first thing to recognize is that you both self-reported and that you have taken completely legal steps to address your debt problem. There may, or may not, be an investigation now. They may just wait until your next reinvestigation.

Ed is right. It MAY generate a re-investigation. It may not. My experience with Chapter 13s is it has not. If you cannot live up to the 13, and must refile as a 7…that can and does generate a re-investigation. Not a problem if you are tracking everything and can explain the problems. Having a rental trashed is terrible but it happens. Cutting ties legally addresses the debt and that is the major concern. You remove a possibility of making a horrible decision to sell classified material for money to get out of this situation. Desperate people do desperate things. Legally doing the right thing shows you are responsible. Self reporting even better. Do your very best to establish and maintain contact with all creditors. Keep an email history. Your ability and efforts to stay in touch speaks volumes.

Thank you both. I appreciate the advice. I try to stay on my toes over my finances.

If Chapter 13 is the one where you put together a payment plan (and it sounds like it is), that is treated much differently from the situation where you basically walk away from your debts.

@amberbunny makes a very good point about keeping track of emails and other correspondence.

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I think you will be okay. It was great you self reported. When your next investigation comes up, disclose on SF86.

I appreciate the advice I have received here. The personal security person just requested a statement, my chapter 13 bankruptcy filing paperwork and my budget with my LES and other income I get. I haven’t heard in a week or so from her. I assume it’s kosher. I didn’t lie and have all my papers and I’m not worried. I still have all my access to my accounts. I’m not worried.

Ive seen it take several months before a Re-investigation is requested. But as explained above a Chapter 13 is easier to deal with than one where you discharge the debt. It actually can be viewed positively that you reached out and didn’t subject yourself to the risk of accepting money to exchange for classified. Now, over time, if the 13 requires refiling as a 7…I would expect a Re-investigation. Not necessarily bad, just time to scope the situation, circumstances and factors leading down this path.

My PRI is due soon anyway. No worries. I really appreciate the advice. I’m not stressed over it thanks to you guys.