Chapter 13 - Lots of Questions - Help!

[BluesCrew]

I will be going to the planning meeting on Tuesday, but have some questions about how to calculate what our payment may be. Here is our situation and I reside in Texas:

2 - 2015 Vehicles - $52,091.00 and $35,240.00 both needed for work. One has two payments in arrears for about $1800. I believe we will be paying our car payment within the plan, but cant cram down and interest rate is already at 6%.

Home payment that is due for this month, but will be paid and will be paid outside of the plan.

Income Taxes $11,108
Student Loans $8,131
Furniture $14,675
Secured Loan $1,151
Credit Card: $9,485
Attorney's Fee $3700

Also, have a older car that has high interest rate that has $8,275 owing against it, but only worth $3,005. This loan on this car is in my name, but a friend has the car and making the payments on it; as she couldn't qualify to take over the payment. Lastly, I have co-signed on a note for my son and he makes those payment. Any thoughts on how this will be handled?

Just trying to get some ideas of what our payment may be and would love some insight from those who have already gone through this process.

I'm stressing out over these issues and afraid that I my payment will be too high to manage. AAAAGGGGHHH!!!

[BriOS]

A word of advice, over estimate your expenses. Its your problem if something "comes up" during the course of your plan. If you estimate down to the penny, you will be strapped from day one and might default on your plan payment. The more room you build into your expenses, the better you will be able to handle unforeseen expenses and whatnot. If your lawyer is not on board with this, get another lawyer. People will scold you for over estimating, but it will be to your benefit if something happens. And if nothing happens and if you feel quilt at the end, make that last payment and pay all your extra money into the plan. Or dont...

[BluesCrew]

Thank you! I pulled all my bank statement and utility bills for the last year and totaled and took the average to begin my budget. Hopefully, this is tell me my spending habits and will factor in the fluctuation in utilities. Also, I am adding 5% to all categories to give me some room for any unexpected expenses. I just wondered how to gauge what my payment would be so that I can adjust upwards if I need to. Lost job and am just now back to the salary that I had pre lay-off, and just can't get caught up.

[LadyInTheRed]

Your payment will be your income minus your reasonable and necessary living expenses. Your method of determining your expenses seems reasonable. Don't Give your attorney a list. Don't worry about expenses being too high. Your attorney will tell you if anything should be adjusted.

Are you sure you can't qualify for Chap 7?

Tell your attorney about the arrangement with your friend. Hopefully, it can be considered as being owned by your friend. It probably needs to be disclosed on your Statement of Financial Affairs.

Your liability for your son's note will be discharged in your bk. If your son can't qualify on his own, it is possible that the lender will accelerate the note if your son can't find another acceptable co-signor. That may not happen right away. I believe your son will be protected by the co-debtor stay during your BK.

[lvmilizia]

This maybe different from state to state and trustee to trustee, but we had a car in our name that our niece was paying for it and driving, as she could not get the loan, and we had to have her turn it into the bank, because we were only able to have the two car payments that we had. Then bank then went and filed an unsecured claim for what was due after they sold it.