Office of the Chapter 13 Trustee

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Office of the Chapter 13 Trustee

• Personal Financial Management Class

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CLASS GOALS

• Budget Development
• Money Management
• Wise Use of Credit
• Consumer Information

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• The average American has a financial emergency
  once every 18 months!
• The use of credit or the incurring of debt is
  prohibited while in Chapter 13.
• 90 of Americans have no savings.

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Whats really important?
Whats really important?
Where do I want to go from here?
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YOUR Plan is YOUR Decision.
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1 - Wants v. Needs
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2 - SET S.M.A.R.T. GOALS

• Specific
• Measurable
• Attainable
• Relevant
• Time-related

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LONG TERM 5 years
Set Goals
Short term 1 year or less
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TAKE ACTION I will save X number of dollars
for Christmas presents and parties by December
1. 1. 2. 3.
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Skills needed to achieve goals

• 1 Focus reminders or pictures
• Set priorities
• Manage time wisely
• 4 Evaluate progress
• 5 Adjust goals if necessary
• 6 Celebrate success

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Inventory your business
Write down everything you spend every day for one
month
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GETTING STARTED

• GROSS Income______________
• - TT payment (if payroll deducted)
• - Insurance deductions
• - IRA contribution
• NET Income _______________ (Net that itty,
  bitty taco you take home)
• - fixed expenses (mortgage/car)
• - periodic expenses (home repair/auto
  registration)
• - variable averages (utilities/groceries/fun/habi
  ts)
• ___________________ FOR SURPRISES/FUTURE

(Gross the whole enchilada)
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Types of Expenses

• Types of Expenses Examples
• Fixed Mortgage, Rent, Car Payments, Child
  Support
• Periodic Insurance (house, car)
  Property/Income Taxes
• Variable Clothing, Food, Phone,
  Entertainment

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GETTING STARTED

• GROSS Income______________
• - TT payment (if payroll deducted)
• - Insurance deductions
• - IRA contribution
• NET Income _______________ (use lowest amount
  DO NOT include overtime)
• - fixed expenses (mortgage/car)
• - periodic expenses (auto registration/home
  repair)
• - variable averages (utilities/groceries/fun/habi
  ts)
• ___________________ FOR SURPRISES/FUTURE
• This is where decision making comes into play.

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Buyer Beware!

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Consider when shopping

• - Compare prices and quality
• - Research before buying
• - Plan shopping in advance
• Walk away, think about it before you buy
• Dont buy on impulse
• Remember The sales people work for the
• seller

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Debt Warning Signs

• Dont Have Enough Saved for Emergencies
• Make only Minimum payments on CC bills
• Routinely Spend MORE than you earn
• Transfer balances from one card to the other
  instead of making payments
• Unsure of total amount you owe creditors
• Bounced Checks
• Use more than your total income just to pay off
  debts

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CREDIT REHABILITATION

• Lynda Woods
• 817.770.8500 Ext 28572
• Amy Tate-Almy
• Ext 28574

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Kinds of Credit

• Long-Term
• Mortgage, car loan, installment loans
• Short-Term
• Items or services in a single payment within a
  given period of time, usually with no interest
  charge. Example Utility bills
• Secured
• Something of value promised to lender
• Unsecured
• Loan without collateral higher interest rate

5-4 5
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Other forms of Credit

• Rental Purchase (Rent to Own)
• Use an item for a period of time, then return it
  if you desire. Weekly or monthly payments
• Lease
• Use a car for a period of time, the down payment
  and monthly payments are almost always lower than
  purchasing a car. Costs more in long run

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Sample Matrix, p 1

• United States Bankruptcy Court
• Northern District of Texas
• Fort Worth Division
• IN RE name CASE NO 405-4XXXX-DML-13 CHAP
  TER 13
• VERIFICATION OF CREDITOR MATRIX

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Sample Matrix, p 2

• ABC Creditors
• PO Box 1234
• Anyplace, USA 00000
• Credit Systems
• 5678 Mickey Mouse Lane
• Disney, CA 99999
• GMAC
• PO 9876
• Cargo, MI 98765
• XYZ Jewelers
• 4567 Diamond Circle
• Emerald Hills, AZ 54871

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Get Off and Running NOW with your Credit !!!!

• www.annualcreditreport.com
• 877.322.8228
• Snail Mail
• Annual Credit Report Request Services
• POB 105281
• Atlanta, GA 30348-5281

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Credit Report

• Says about you
• Identification and Employment Data
• Payment History
• Inquiries
• Public Record Information
• Negative Information
• Collection accounts, late payments, charge-off,
  days late, bankruptcy, tax liens, judgments,
  excessive inquiries, accounts closed, Trans
  Alert, Hawk Alert (potential fraud indicators)

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Texas Dept. of Insurance

• Texas Fair Plan
• 1(888)799.6277
• www.helpinsure.com
• 1 [phone]

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Maintain Adequate Insurance Coverage

• You May Need You May NOT Need
• Health Mortgage Life Insurance
• Disability Insurance on CC balances
• Life Flight Insurance
• Homeowners or Renters Cancer Insurance
• Auto
• www.tdi.state.tx.us
• 1-800-252-3439 Consumer Help Line

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Identity Theft

• Fastest growing crime in America
• DFW area
• FACTA federal law helps protect
• Review credit reports periodically
• Be aware of fraud

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Consumer Information

• Federal Trade Commission
• www.ftc.org/gov
• regional office 214.979.0213
• Consumer Action Handbook
• http//www.pueblo.gsa.gov
• 1.888.878.3256

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Good luck reach for the Stars!!!