Met With Attorney Today

[DebtHeadache]

Here's the deal: He said clearly that we'll have to file Chapter 13 as we make too much money (102K per year from 2 earner income)...He gave me a big questionaire to fill out and return with $1,300.00 for him to start the process. I told him we needed to be filed by the end of the month.

Here's our situation:

Last 6 months gross income average: 8,515.56
Of that we have an average of 1,260.81 taken out in taxes, 283.96 in Medical deductions, 400.00 taken out and put into a heath care reimburesement account, Insuranes for 231.21 and 2 401K Loans for 382.4 and 304.44
Expenditures of about 4600.00 (Which includes mortgage/property taxes/and 2 car loans)...

So that leaves us around $900.00 in disposable income, right?

What bothers me is my husband is in a start up company and making Overtime and that will be going away soon. Our income will be reduced by a couple of hundred dollars per pay check, how will, or can we account for this reduction in the future?

Comments please?

[lrprn]

Last 6 months gross income average: 8,515.56
Of that we have an average of 1,260.81 taken out in taxes, 283.96 in Medical deductions, 400.00 taken out and put into a heath care reimburesement account, Insuranes for 231.21 and 2 401K Loans for 382.4 and 304.44
Expenditures of about 4600.00 (Which includes mortgage/property taxes/and 2 car loans)...

So that leaves us around $900.00 in disposable income, right?

Unfortunately figuring your Ch 13 payment is a very complex interaction between gross income, secured and unsecured debts, and other payments (child support, alimony, etc)on the Means Test and Schedules. If only it was as simple as subtracting net income minus expenses - it isn't. The only way to really know for sure how much your payment might be is to have your lawyer run the Means Test and Schedules. Only then will your calculated disposable income amount emerge.

What bothers me is my husband is in a start up company and making Overtime and that will be going away soon. Our income will be reduced by a couple of hundred dollars per pay check, how will, or can we account for this reduction in the future?

If there's any way you can wait to file, that's in your best interests since you know your income is going to drop quickly after filing. The only option you have to reduce your payment after filing Ch 13 is for your lawyer to file an amended plan with the court.

Reducing your confirmed payment will only happen if you can prove to the courts that the reduction in your income is significant and permanent and the judge approves the new amended plan. Keep in mind that filing an amended Ch 13 plan with the court allows your creditors to again have a period of time to file objections to the new plan.