Where to start on Chapter 13???

[AreSoonParted]

I have been planning a Chapter 7 for a few months, have read the NOLO guide, etc... Well now I got a bonus, my company instituted profit sharing, and I got a payraise, normally this would be good news. This all throws me out of the Ch 7 means test, but is not enough to dig myself out without a BK.
I have about 100k in unsecured debt.

I am working through a few variations of form 22C, and and working on a Schedule J before I go to visit an attorney. I know from my Chapter 7 prep that it's better to go into the attorney's office knowledgable with specific ?'s otherwise you get the "generic" bk intro.

My questions are: What are the primary drivers on a Ch 13 repayment plan the Form 22C or Schedule J? Are you usally allowed to contribute to a 401k?
I have an older but reliable car that's paid off, Should I think about trading in for a newer car?.. We stopped using CC's in December, Because of the tax refund and bonuses, pay raise, etc I'm guessing we're 5-6 months away from filing. I would appreciate any advice since I'm now, again, in uncharted waters.... I've gotten lots of good advice from the Chapter 7 discussions so I
look forward to whatever help I can get on the Chapter 13 list.

Much thanks, and happy new year

[lrprn]

What are the primary drivers on a Ch 13 repayment plan the Form 22C or Schedule J?

The comparison of the totals on Schedule I compared to the totals on Schedule J seems to be the primary driver that ultimately determines your monthly Ch 13 payment.

Are you usally allowed to contribute to a 401k?

Yes, but some districts place an upper limit on what you can contribute. In our district, 5% of gross income/month is the maximum allowed. Also be warned that there are a few trustees who will not allow you to contribute because they see contributions towards retirement as non-essential. Ask your lawyer what's been the pattern in your bankruptcy district for the Ch 13 trustee(s).

I have an older but reliable car that's paid off, Should I think about trading in for a newer car?..

If you think your current car can last the five years, then take a chance on it. Otherwise if you think there's a good chance you will need a more reliable car, do get it before you file. However, if your credit score is currently less than 680, the sub-prime, high interest rates you will qualify for may make that less attractive an option. Anyone have advice from their personal experiences to offer ASP?

We stopped using CC's in December, Because of the tax refund and bonuses, pay raise, etc I'm guessing we're 5-6 months away from filing.

How recently did these additional income increases happen? If you stopped using your credit cards in December, that means you could file after 90 days has passed which would be April 1. File your taxes early and if you are getting a refund, spend it before you file on legitimate family expenses (like the car). If the bonuses and pay raises came after last November, then filing earlier would add two less "increased income" months to your "last six months" income total....just a thought.

[AreSoonParted]

RE: Where to start

Well I got a pay raise and a bonus last August. This pushed me enough over the Ch 7 limit. My Attny advised we would go to a Ch 13. We used the August bonus to last until now and were planning on filing in Early Mar when all the August bonus "rolled off"...or early April to give us a month to get our tax refund (about 6k) spent, then file for Ch 7. So now I find out I'm getting another bonus in April which combined with my "expected" raise that takes effect in April will push me over the top again. YIKES!!! Now they've made these bonuses a standard part of my pay package. So I can't use the "one time payment" argument.

I think I have a pretty good shot at a 36 month plan option, but again who knows..

It's kind of frustrating because I know I can't dig myself out. Because of the exemptions, planning for a Ch7 and Ch13 are totally different. I'm really ready to start putting my mistakes (ie... buying a vary inflated house and selling it at a massive loss) behind me and moving on.

Between the bonus, tax refund, and pay raise I should be able to get fairly well situated prior to a Ch 13 filing. I have an ARM that will start adjusting in 4 years and I want to get my credit in order before that happens.

Thanks for the advice

[aa06a47]

I am not sure your credit will be in order after you file bankruptcy. Make sure and not have any more money in the bank at the time you file than your lawyer states you should have.

[treehugger1]

ASP: You have no idea how much your situation is so close to mine. I have a base salary but overload/overtime/bonuses are a moving target. I should have filed a few months ago, but I thought my income would go down. But no, it stayed the same. Now, I am making a little more. I'm still not geting ahead on creditor payback, but I can keep all the wolves happy. I am so sick of this. Sometimes I hope that someone would just get a judgment and wage garnishment, so I would push myself to file, but oh, no, the creditors have been quite willing to work with me. I'm not saying this is bad, as Bk was not on my radar screen a year ago, but I don't need a crystal ball to tell me what the inevitable course of action will be. I just want a realistic picture of my income. My partner tells me to just file and go for amending my plan as needed, but I guess I need a few more months of punishment. Cheers. Pay close attention to others on this forum. They are very wise. I fell better knowing that many of them will till be here supporting us and others after we take the step.