Disposable Earnings and Payment Plan

When they figure up the payment plan, do they figure it on my current income and future income or the last six months. The reason I’m asking is that I received some one time distributions (insurance cash out and a hardship withdraw) that I wouldn't normally receive. I will not be receiving them in the future. So will they just base it on my current and future earnings - minus the allow expenses only. The two distributions put my income and disposable earnings up way more than it would normally be for the last 6 months. My disposable income would be much less based on my normal earnings.

I hope I didn't make this confusing.

Thanks again for being so patient with me. This is all new to me.:blink:

When they figure up the payment plan, do they figure it on my current income and future income or the last six months. The intial income calculations for filing Ch 13 are based on your income from *all* sources (including one-time events) for the last full six calendar months before filing. Then after filing Ch 13, significant, long-lasting increases and decreases in income and/or expenses can be used to amend your court-mandated payment after filing as well.

My disposable income would be much less based on my normal earnings.Then in your situation you would want to wait to file Ch 13 until the one-time income events are no longer in the last six calendar months. If you don't wait, then your payment will be calculated on that higher income amount as if you were making that amount all the time and will continue to do so.

Doesn't make any sense, I know. Be sure to thank the large majority of the 2005 congressional representatives for voting in this little bit of silliness and making it a mandatory part of the bk law.

I found this to be a helpful site:

http://www.goainc.com/fraley/calculators/expense_calculator.html