Thinking of Chapt 13

[eemipp]

I'm so glad to have found this site. During the past year we have gone through losing two businesses, foreclosing on our home and having two cars repo'd. We are finally at our limits and feel that we have no alternative to file chapter 13. We are about 5K over median income so we do not qualify for chapter 7. I have a couple questions maybe someone can answer.

We spoke with an attorney and they advised us they believe that we would be in the 10% bracket for repayment. Even this will be very tight on us so we were contemplating moving in with my in-laws when our lease expires in November. How will that affect our BK? Does it become extra income so we can pay off the BK early or does it mean we just pay more to the creditors? I guess - moving with the in-laws is worth it if it gives us a leg up but if we are just as tight moving in with them because we have to increase the payment amount to the plan then I think it wouldn't be worth it?

Also, the thing that is unclear is what about income increase or bonuses? If you get them and you notify the trustee does it go to pay down what you owe at the 10% level or does the amount get raised?

Once its confirmed does that mean any extra pays it off quicker?

Any help and/or comments would be appreciated!

[rrockinggramma]

if you move in after you file then it depends on your trustee and how much of a stickler he is whether it changes your payments. I would continue paying so the expenses are in your budget and then move when your lease is up. The trustee won't come to your house to see where you are living. And to cya you could write checks to your inlaws or parents, whomever, and have them cash them and then return the money to you to leave some kind of paper rent trail, etc. There are probably ways to do it. Just have to fly under the radar (and I know that one should always be up front and honest etc but once filed, the trustee only cares about payments received and claims filed and creditors paid)

and there is no advantage to paying more in each month, the creditors just get more. It will not change the length of your plan. If your plan says 60 months, then it is 60 months. And the trustee might ask why you are paying more anyway. (unless you are in 100 percent payback, then more shortens time frame, but 10 percent, no just pay the amount and wait it out)

bonuses depend on how much and how often and whether or not they are consistent and on the past practice of your trustee in your district. Only your attorney can answer that question