Chapter 13 payments--how do they work?

[JayGZ]

So let's say that after subtracting my net pay by my expenses that I come up with about $200 left over.

That amount is then multiplied by 60, which equals: $12,000.
That's the amount I will then owe?

I'm then required to pay $200 a month over the next 5 years for chapt. 13?
Is that correct?

And what happens if:
A) my salary goes up
B) I get a bonus
C) I receive an inheritance
D) my ex-wife files to have my child support payments increased

[Genenco]

So let's say that after subtracting my net pay by my expenses that I come up with about $200 left over.

That amount is then multiplied by 60, which equals: $12,000.
That's the amount I will then owe?

I'm then required to pay $200 a month over the next 5 years for chapt. 13?
Is that correct?

And what happens if:
A) my salary goes up
B) I get a bonus
C) I receive an inheritance
D) my ex-wife files to have my child support payments increased

A) You pay more to trustee
B) See A
C) See A
D) See bankruptcy lawyer for Ch 7

(Note see my response in General Bankruptcy Talk)

[FoolAndHisMoney]

You can modify your plan to pay less into it if the courts order an increase child support payments. Or you can keep A-C if child support or other reasonable expenses goes up.


You "should" qualify for a chapter 7 anyway based on what I read on your other thread. The change in the new law was not designed to force someone like yourself into slavery. It was advertised that way and shame on those that said it like this! It was designed for the few debtors that live the good life and decide to use the courts as first resort to get rid of their debts.

[MRDEBTSTER]

JayGZ, If the only reason you are considering chapter 13 over chapter 7 is being able to make payments to the attorney, you need to look for an attorney that will take payments or realize that if you are going to file, you stop paying everybody but the secured loans that you want to keep.

That should free money up for you to pay an attorney.

[threnners]

What happens if you take a pay cut?

[StaciMM]

A 13 can be adjusted, if expenses go up. It can also be converted to a 7, if there is a drastic change-but that would also depend on why you filed a 13 in the first place.