Let's say that I have $200 of disposable monthly income after I total all my income and expenses. The $200 wouldn't be enough to repay all my creditors in a Chapter 13 reorganization plan. I would rather file Chapter 7. Would the court still make me pay the $200 a month in a Chapter 13 even if that income wouldn't be near enough to repay all my debt? Or would they just convert it to a Chapter 7? Also, if I had to file for Chapter 13, is the payment fixed for the length of the repayment term or will it vary depending on increases or decreases in my income throughout the plan term? For example, let's say that 6 month's after filing BK that I get a raise of $100 a month. Would I have to apply to raise to the reorganization plan too? I live in Florida. Thanks.
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to qualify for a chapter 13, the chapter 13 plan must also pass a few "tests" . In some states, (not sure about Florida so a BK attorney could tell you) you must be able to pay a percentage of your unsecured debt back (like 10 percent) If your plan payment doesn't meet that test, then you could, with 200.00 a month disposable, still qualify for a chapter 7.
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