Chapter 13 Questions

[bankrupt_again]

Okay so I am a bit scared about posting this as it seems that many things are going wrong right now and I would not want the wrong person to see this at this point in my life.

So here are some of my questions and I will try not to ask to many at a time and try not to repeat these.

My husband and I filed chapter 7 and had it discharged 6 years ago. We are once again in a bad spot and need to file and learn more this time than we did last time. The first thing that is different is we will not be able to file chapter 7 as it has not been long enough. We also have a much larger family than we did and want to keep our house and maybe our minivan (depending on if we will have to pay what we owe or what it is worth) One other difference is I want to try to do this without an attorney. I know many people will think that is not real smart but I have represented myself in many cases and have always done fine.

So my questions are if anyone knows:

This time we do actually have income but some of it comes from an adoption subsidy so I am very unsure if this should count as income?

What if I do not have enough disposable income will they deny the chapter 13 and make me wait 2 more years to file 7 again?

Another question that I have is will I get more money for expenses such as food and utilities and so forth because I still have 8 kids at home?

What about our tax refund that we get every year that is always at least 5,000 will I have to turn all of that in as well?

I guess what I need to know is what everyone on here thinks will happen. I have about 40,000 in unsecured debt but with all of the fees and intrest they are adding on I cant keep up with it and keep providing for my family properly so the unsecured creditors are getting nothing and I am scared they are going to garnish hubbys check and then that will be a downhill spiral from there.

Any advice would be appriciated I know that I got myself into this mess and I am the one who has to live with it but man I am stressing out and am tired of worrying about it everyday.................

[SinkingFast]

NACAC is not aware of any states that have a different definition of taxable income, but parents should consult their tax preparers or a tax advisor about state specific rules.

http://www.nacac.org/subsidyfactsheets/taxes.html

To answer your Questions, it would help a lot to know what State you live in.

[bankrupt_again]

Thanks for your reply...

I live in Iowa. I do not have to claim it on my taxes as they do not consider it income. However if I do not consider it for my 13 do I still consider in the kids that I get it for on the expense side???????

[SinkingFast]

Much of the BK Code for family definitions and such is based on what the IRS and the Census Bureau says is allowable.

According to the IRS, your adopted children are treated as your natural children for exemptions and deductions. The same should hold for BK.

[coma]

As far as the tax refund, that varies by trustee. Some are more liberal and allow you to keep it, so only want a portion, and some require all.

[aa06a47]

1) I know you don't want to hear this, but since your a previous filer, I would use an attorney.
2) After you knock a payment down, change your deductions so you don't get such a large refund. Your giving the IRS about 400/month more than you should. I say do it after the payment plan is knocked out is because you probably will have to give some of the tax refund to the trustee. Might as well have that money for yourself instead of the trustee.

[SinkingFast]

Here's a link to a web page about BK:

http://www.usdoj.gov/ust/

Means Testing info is there. There's a link to DOJ approved Credit Counselors and Debtor Ed agencies. You have to use a DOJ approved agency to get your Certs.

Lower down on the page, under "What's New", there's a link to the new Forms.

Another good resource for you is the Nolo book.

Here's a link for you to Iowa BK Exemptions:

http://www.bankruptcyinformation.com/IA_exemp.htm

I did notice there, Iowa BK Code specifically limits the Exemption for tax refunds to $1K. May not be local practice, but definitely something to look out for.

I'd second Aa's suggestion for getting an attny. If you were looking at "No Asset Ch 7" that would be one thing. Navigating a Ch 13 since BK reform is a route lined with land mines for Pro Se filers.

Even if you do proceed and file Pro Se,........... I'd suggest you Consult with several BK attnys. Generally Consults are free and you can learn a lot from them.

[bankrupt_again]

Thanks for the advice so far.

As far as my taxes go we only pay in around 1500.00 we have 8 children at home so most of the money is from child tax credits. I am going to change our deductions prior to filing because every little bit will help but it really wont amount to much.

I am going to consult with an attorney or ten before I file but can't really do it yet.

I will be getting as many books as I can to from the library or cheap books off of amazon but found this web site first. When I filed chapter 7 things were much different as we had very very little income and lots and lots of debts due to hubby losing a 100k plus a year job so it was pretty cut and dry.

I hate having to do this again and do still beat myself up everyday as I swore I would never get in that far again and I am no where near what I was but my child support stopped hubbys overtime stopped (after 4 years) and together those amounts were paying much more than I thought.

Thanks again and I will be checking the other web sites and getting books and trying to get informed I am looking at wanting to file in 30-45 days so I will keep you all posted.........

[SinkingFast]

Wait to change your Exemptions/Withholdings until after you file and have your 341 Meeting.

The Trustee is definitely gonna see paystubs from before you filed. Many Ch 13 Filers have had to take the most current month of paystubs to the 341 for the Trustee to review.

Leave your Withholdings as is until you get thru the 341. Then change them if you want.