Ch 13 questions

[tigerman]

How do they determine how much your payment will be?
How much money can you have on hand or do they expect you not to try and save money?
How do they determine if its a 36 or 60 month plan?
sorry for the questions

[momofthree]

How do they determine how much your payment will be?
Your income minus allowable expenses = plan payment

How much money can you have on hand or do they expect you not to try and save money?
The amount you can exempt will vary by state, however, even if you have non-exempt cash on hand, as long as you pay at least that much into your plan over the plan term, then you are allowed to keep it.

How do they determine if its a 36 or 60 month plan?
Over median = automatically 60-month plan unless you pay 100% of your debt off sooner.
Under median = option of 36-month plan, but can go up to 60 if needed.

[daglo]

Chapter 13

We are talking with an attorney about BK 13. We are afraid that we will not be able to afford the payment! One attorney said we would be paying at least 800 a month. This is unreal, as we do not have that much left after paying neccessities. I lose sleep at night. Our home is under water, we have no assets, we want to keep our home, but get rid of these creditors. I lost my job, my husband took income cut. We are afraid they won't approve our expenses. When I see what others have, I feel better, but what is allowable?

[momofthree]

The IRS standards are fairly generous. Is there a reason you're looking in to ch.13 rather than a ch.7? With job loss and an income cut it seems you should qualify for a ch.7.

You can view the IRS standards here: http://www.justice.gov/ust/eo/bapcpa...anstesting.htm