chapter 13 - another, surprise!!!, question

[jenski]

if you're paying your mortage, 2nd, and secured auto loans, that leaves you with x dollars a month.

let's say that the x dollars per month just cover your remaining expenses (and let's assume they are valid), then there is 0 left for a payment to creditors.

what happens?

[MajorMike]

Depending on your district/state, you may not owe anything to creditors. It all depends on your disposable income. Take the means test to see.

[EveryDayAdam]

if you have less than $0 left to pay creditors in your chapter 13 calculations, then you will be forced in to a chapter 7. You can't have a chapter 13 payment of nothing.

[jenski]

if you have less than $0 left to pay creditors in your chapter 13 calculations, then you will be forced in to a chapter 7. You can't have a chapter 13 payment of nothing.

but our income does not meet chp 7 guidelines?????

[lrprn]

but our income does not meet chp 7 guidelines?????

What matters is how your income vs expenses come out on the Means Test and Schedules. It is very possible to have an income above the state median and still qualify for Ch 7.

The issue you will have is whether your state's exemptions can protect your secured assets if you file Ch 7 and want to keep them.

You need expert legal advice to sort this out. Make 3-4 appointments for free or low-cost consultations with bankruptcy lawyers in your area. You'll learn a great deal about whether you do qualify for Ch 7 and what the impact on your secured assets might be if you do file Ch 7.