Way over the means test...

[TooMuchCredit]

I make just over 2x the median for my state (GA). My car and house payments are way over the IRS standards. From what I read this is fine for Chapter 7, but you are limited to the IRS standard in a Ch. 13.
However, they are secured debts either way so I am confused? Would they try to make me sell them in a 13?

I have input my expenses into forms 22A for Ch.7 and 22C for Ch. 13. 22C has entries for the secured creditors where I entered my house and car. As 22A has no entry for 401K contributions it says I have a much higher disposeable income than the 22C.

With 22C, I would have $5 Disposable income. So would I really have to enter into a Ch. 13 to pay my creditors $5 a month? Of course I guess the trustee would be getting $130 a month for paying my mortgage and car for me.

It seems like I could start contributing a large sum to charity for the next 6 months and qualify for a ch. 7 and then be done with it, then reduce my charitable contribution.

(Yeah, may not be fair to the creditors. I tried to work with them before I couldn't make full minimum payments and they essentially gave me the middle finger. They helped by raising my rate to well over 30%, doubling the minimum payment I couldn't make already, then calling 10 times a day demanding I pay. So I have no qualms walking away from them. The government is helping out the banks, so I might as well send the $ to help people that are less fortunate.)

[Bandit]

if you do have a higher disposable income then yes they can make you go into a 13, so I would be thinking the same way you are with charity, only maybe a living expense that could qualify as exempt instead of a charity. Could you use some extra health insurance for awhile?

a good attorney knows how to get people into a 7 when they border a 13.

to answer your question, your secured debt (house/car) does not get sold in a 13, rather you will be making those payments in full every month to keep them, it is your unsecured debt that would go in as a percentage in a 13.

Depending on the exemption for homestead in your state & auto is another factor on keeping them if you go into a ch7. But I guess you already know that.

To answer your other question about the $5 a month, the answer is no. You wont go into a 13 for that amount left over. You need to have at least 100 dollars extra a month.