Sorry just trying to understand!

[tadbitconfused]

With us surrendering our home but it doesn't cover the second mortgage of 45000.00 we are surrending the truck which leaves a balance of around 10k. Plus the credit cards of 17500.00. We are over the median for chapter 7. How is the amount determined? We will have to pay rent plus the other car payments. So again I ask the same question because I am not understanding. If myself or my husband get a raise do we have to pay more, or is it once the payment is set as long as we have no financial cotstraphies will we always pay the same amount until the debt is paid. I understand that we may not have to pay 100% of the amount but can that change also during the 5 years.

[CATCHMEIFYOUCAN]

Typically if you income rises 10% or more your re-payment plan increases too. Others will chime in time and give their input!

Best Wishes, CMIYC

[SinkingFast]

A Ch 13 Filer can better explain exactly how the payment is determined. Means Test, real life Expenses, or a mix of the 2.

How it will go during your plan is really gonna depend on the Trustee and the Court you file in.

Some Trustees,......... Once your plan is set, and you continue making all your payments on time,............. You never hear from them again. Doesn't matter if you have a pay increase. They aren't interested in seeing your income tax returns. They just take the payments and leave you alone.

Other Trustees wanna see your income tax returns every year. If you get a refund in excess of $1K, or $1500, or whatever the "trigger" is, you get to keep the $1K or $1500, and you have to turn over the rest to them. The Trustee doesn't really pay attention to your income as long as you don't have a salary increase in excess of X%. Some Trustees work on 3, 4, maybe 5%. Other Trustees will allow up to 10% salary increase.

Some Trustees nit pick over every little detail. Take every penny of any tax refund. To the letter of the Law, so to speak.

It's really gonna depend on the Trustee you draw how your Plan will go.

Part of it is area and market dependent too. If you live where there are lots of good paying jobs available and a strong economy. Or if there's an extremely high Foreclosure rate, high priced goods and services, and lower paying jobs.

Even tho we have 1 BK Law, it's not applied the same every where. Attnys in your area can better guide you on what to expect from the Court you'll be filing in.