chapter 13 payments

[larryg]

This is so confusing. If I make my credit card payments they will total 1200 a month and be paid off in 10 years. (that's at the current interest rate & all payments on time) The attorney I talked with said my payment would range between 200 and 300 per month for 5 yrs if I file 13. I look at the payments people on here are making and I'm shocked. Is this based on your debt or your ability to pay the debt.
I forgot to tell the first attny about the start up money owed to me by my LLC. Even though the LLC doesn't have the ability to pay me back right now I'm guessing the trustee will consider that an asset and add it to what I can pay to my creditors. Does this sound right?
If my payment was to go over 500 + my house payment I would be forced to file 7 and lose the business and the house. This is so scarry. Believe me if the LLC had enough assets I would just sell them and payoff the loans.
Is there anywhere to do a rough estimate of what kind of payments I would need to make or do I have to depend on the attny to tell me? It seems to me the attnys are usually wrong on the payment plan anyway.
Thanks for the info.

[Flamingo]

This is so confusing. If I make my credit card payments they will total 1200 a month and be paid off in 10 years. (that's at the current interest rate & all payments on time) The attorney I talked with said my payment would range between 200 and 300 per month for 5 yrs if I file 13. I look at the payments people on here are making and I'm shocked. Is this based on your debt or your ability to pay the debt.
I forgot to tell the first attny about the start up money owed to me by my LLC. Even though the LLC doesn't have the ability to pay me back right now I'm guessing the trustee will consider that an asset and add it to what I can pay to my creditors. Does this sound right?
If my payment was to go over 500 + my house payment I would be forced to file 7 and lose the business and the house. This is so scarry. Believe me if the LLC had enough assets I would just sell them and payoff the loans.
Is there anywhere to do a rough estimate of what kind of payments I would need to make or do I have to depend on the attny to tell me? It seems to me the attnys are usually wrong on the payment plan anyway.
Thanks for the info.

What Chapter you can file is based on a number of things; Your income and the State in which you reside, the amount of your debt, your state exemptions, your assets. The money owed to you by your LLC, if you do file a 13, will be considered income when/if paid to you during your Plan but right now it is not cash in hand. You do, however, need to reveal that to your attorney.

If you provide an attorney with all the information he/she needs (complete listing of your bills, monthly payments, assets, income, etc.), your Plan payment will be close if not right on the money. Attorneys can only go by what you tell or provide them. If you withhold information and then provide it later, of course the amount may change.

If you are going to retain this attorney, ask him for a complete breakdown of what was explained to you and certainly bring to his attention the possible other funds you may receive if you file a Chapter 13.

Best of luck to you.

[larryg]

I am going to check out a couple other attnys and ask more questions about filing 7 instead of 13. I'll also address the money owed me for the LLC start up.
I like the first attny and will probably go back to her but want to get other opinions. And your right I couldn't expect her to advise me without all the info. I had the info with me I just didn't think about my investment in the LLC so I didn't bring it up. I now have a BIG note in my file folder so I won't forget to bring it up next time.
Many of the posts on here talk about their payments changing by 500 or 600 after the 341 hearing and I just get panicked thinking that could happen. Right now I'm not behind on any of my payments but I am robbing paul to pay peter every month and I know eventually that will have to stop. I had to get cash off my cards to pay bills in Dec and Jan so I know I can't file for at least 6 months.
Trying to save the LLC and my home is a nightmare. I appreciate any info I can get from here. Reading the BK manual has helped a lot.
Thanks

[Flamingo]

IMany of the posts on here talk about their payments changing by 500 or 600 after the 341 hearing and I just get panicked thinking that could happen. Right now I'm not behind on any of my payments but I am robbing paul to pay peter every month and I know eventually that will have to stop. I had to get cash off my cards to pay bills in Dec and Jan so I know I can't file for at least 6 months.
Trying to save the LLC and my home is a nightmare. I appreciate any info I can get from here. Reading the BK manual has helped a lot.
Thanks

I hear ya as to robbing Peter to pay Paul. Believe me, it does not go away and will get worse. It it was I called the "downward spiral" which sent us to BK after my husband lost his job and we were trying not to file. We just made the debt situation worse and more we had to pay back when we filed. Most of us in or out of a 13 know all about the "downward spiral." That is your warning sign to investigate BK before you may utilize things that are exempt to pay bills (i.e., your 401(k) plan which is exempt). We utilized my husband's trying not to file and learned afterwards we could have kept it if we filed. Good deal as to getting a second opinion from another attorney.

[helpless]

I agree with Flamingo. We also went through our 401K and now look back on it, stupid, stupid. We should have filed 6 months before we did.