BK 13 (Help!!!!!)

[k4d]

My wife and I are contemplating BK 13, however we have a few questions which need clarification before we follow thru. It's been 11 years of marriage with this weight on our shoulders.

1. How does BK effect our allowances for Private schooling

2. It is not clear if we are filing BK to get into further debt with a new vehicle? What is the allowance or exemption for the monthly on a vehicle? Will this not be a minor deduction or a mute on the means test?

3. I assume BK is public record and this will be published? Where?

4. Are payments part of a Payroll deduction?

5. How does BK effect partnership or future partnership in a business?

6. After filing BK and making the first payment, are we being monitored and have to report changes in income?

7. Is Credit Counseling mandatory?

8. What is the power of the Trustee? In other words what are they authorized to do and not allowed to do besides collect?

9. How does BK effect 401, 408, Roth and Florida Pre-Paid Tuition?

10. Employers notified for any reason?

11.What is a 341 meeting? Who attends and what information is given or expected to be declared?

12. Employer bonus need to be declared as this is not a stable or predictable amount each year if given?

13. How is my side business effected?

14. Documentation required for filing: Pay Stubs, Tax filings etc..?

[lrprn]

Welcome to BK Forum - glad you found us!

1. How does BK effect our allowances for Private schooling?

It depends on your court customs and trustee preferences. Some trustees will not see private schooling as a necessary expense, some will. Ask this question during your 3-4 free consultations with bankruptcy lawyers in your area who will be familiar with what the Ch 13 trustee's approach has been with others in your situation.

2. It is not clear if we are filing BK to get into further debt with a new vehicle? What is the allowance or exemption for the monthly on a vehicle? Will this not be a minor deduction or a mute on the means test?

The exemption allowed for cars depends on the state you live in. Which state do you live in?

3. I assume BK is public record and this will be published? Where?

Most communities publish it in the classified area or local section of the newspaper where the police reports are published. Also the information can be found in PACER (Public Access Court Electronic Record) but you have to have a free membership to see any information here. Not likely that friends and family are going to be looking there.

4. Are payments part of a Payroll deduction?

Some Ch 13 trustees require payment through payroll deduction, others allow filers to pay by personal check or money order. Just depends on your trustee (and another question to ask during lawyer interviews).

5. How does BK effect partnership or future partnership in a business?

Current partnership - consumer bankruptcy and business debt are an uneasy mix. It's almost a guarantee that your local trustee and the US trustee are going to take an interest in your case and look it over closely. Can't speak to future partnerships except that getting any kind of financing is going to be impossible while you are in Ch 13.

6. After filing BK and making the first payment, are we being monitored and have to report changes in income?

Most trustees will explain what they expect to be notified about - there's variation between trustees. Almost all trustees expect to get a copy of your income tax returns every year - they monitor your income that way. Otherwise if there's a significant change in income or expenses, you tell your lawyer who tells your trustee.

7. Is Credit Counseling mandatory?

Through Dept of Justice approved credit agency, yes, the course is required to be completed successfully within six months of filing. There's another required financial management course that has to be taken any time before your discharge as well.

8. What is the power of the Trustee? In other words what are they authorized to do and not allowed to do besides collect?

A trustee's power is considerable. They are in charge of your bankruptcy estate while your plan is in effect. You can't take on new debt without your trustee's prior permission throughout the life of your plan.

9. How does BK effect 401, 408, Roth and Florida Pre-Paid Tuition?

ERISA 401K retirement funds are protected from seizure by the trustee. I don't know about the others you mention, but the lawyers you interview will.

10. Employers notified for any reason?

If they are a creditor or if your payment has to come directly from your employer, then yes, they will know you filed.

11.What is a 341 meeting? Who attends and what information is given or expected to be declared?

Search for "341" here in the forum and check the 341 sticky - you'll get the answers to your questions.

12. Employer bonus need to be declared as this is not a stable or predictable amount each year if given?

If the bonus comes during the six full calendar months before you file, then yes, it is counted in your income calculations for filing. Bonuses after filing depend on your trustee's expectations on what you report.

13. How is my side business effected?

Depends on your side business and how much income it generates.

14. Documentation required for filing: Pay Stubs, Tax filings etc..?

All of these, plus since you have a business involved, records from your business as well.

Whew! Hope this gives you a head start understanding about Ch 13. It will help us help you better if you can tell us which state you live in, your family's income and size, which assets you hope to keep if you file, and more about your business(es).

[DOA]

My wife and I are contemplating BK 13, however we have a few questions which need clarification before we follow thru. It's been 11 years of marriage with this weight on our shoulders.

1. How does BK effect our allowances for Private schoolingWell, my daughter was in college and there view is that tuition is a choice, not a need where I live.

2. It is not clear if we are filing BK to get into further debt with a new vehicle? What is the allowance or exemption for the monthly on a vehicle? Will this not be a minor deduction or a mute on the means test? This is gonna kind of be at the states rules where you live.

3. I assume BK is public record and this will be published? Where?YEs, local papers and PACER.

4. Are payments part of a Payroll deduction?Can be if the trustee wants it to be, or if you get behind paying yourself monthly.

5. How does BK effect partnership or future partnership in a business? Don't know

6. After filing BK and making the first payment, are we being monitored and have to report changes in income? Standard rule, according to my trustee, is anything above a 10% increase in pay HAS to be reported immediately, not on your next tax forms.
7. Is Credit Counseling mandatory? Yep.

8. What is the power of the Trustee? In other words what are they authorized to do and not allowed to do besides collect?Powerful, and can ask to have your BK dismissed at their discresion, and you have to PROVE why they shouldn't. Don't make them mad.

9. How does BK effect 401, 408, Roth and Florida Pre-Paid Tuition?If you are putting a high, say 10%, into a 401k they CAN make you reduce it and use that additional $$ to pay creditors. As a matter of fact, they did it to me.



11.What is a 341 meeting? Who attends and what information is given or expected to be declared?You, the trustee, your lawyer, and any creditors that wish to attend. If your case looks shady to the trustee, or your numbers don't add up he can recommend dismissal to the court based on this meeting.

12. Employer bonus need to be declared as this is not a stable or predictable amount each year if given? It's a part of your income, and is reported as such. So, if, as stated above, it was within the 6 months prior to your filing they will take it into account. And don't think they are going to let you keep any substantial tax refund for the duration of the plan. Anythin over $500, combined state and fed I have to turn over.

13. How is my side business effected?Is the side business real, as in taxes filed, tax ID and so on? If so, it could be pulled into the matter. If you fix mowers and sell them in front of your house, don't mention it, it's a hobby.

14. Documentation required for filing: Pay Stubs, Tax filings etc..?

Hello

[BrianBlade]

My g/f's attorney said the trustee never keeps a tax refund. She gets to keep it regardless of amount, also, he never asks for tax returns. Her atty said to file AFTER she gets a big commission due to her on the 21st because he will figure out how to use it as an advantage, not disadvantage to her.
All trustees are different, so you can't really go by what the standard is. There is none.

[k4d]

BK 13 Help!!!!!!

We live in Florida, family of 4 income of 88K.

Can myself or my wife only file? Do we both have too?

[rrockinggramma]

If your debts are joint, it is probably prudent for both to file. If you can separate the debt into his and hers then you would have to weigh the situation. Best advice there is to talk to lawyer. I have been on BK forums for a while and many times I have seen where one spouse files, the other doesn't, and the creditors come after the non filer relentlessly. In the end, the other spouse is forced to file just to stop the harassment. But with his and her debt it is different issue. In a chapter 13, it has to be a family affair. Both have to buy in to the budget and learn to be frugal together for it to be successful, in my opinion. And I do believe that if your kids have been in a private school all along, not just recently enrolled to keep your disposable income down, then it probably can be argued by a good attorney that it is in their best interest to keep them there. Although you might have to prove that private school is the best place for them to be. Get a good attorney and go over all of these questions with him/her.

[southernbelle]

What happens if filing single then you get married?

What happens if you file single, then within a year or two get married . How does the marriage change the plan and payments and how would the future spouse be affected? Is it possible to file married / separate to keep income separate ? Just curious.

[k4d]

At what point will I know what my monthly will be for the plan? How do they (I) figure that out? Does the means test give me the monthly at the end? Also, where and when do we sign the FINAL papers to go thru with the BK? At what point can we decide to not file?