How much disposable income?

[whtsamada]

How much disposable income do you have to have in order to qualify for Ch. 13?

[HHM]

At least $100 per month.

[whtsamada]

Thanks!

[MI_Debtor]

Don't you need enough to pay a certain percentage of your debt, plus the trustee fees? I'm curious how low of a payment is allowed for $70K unsecured debt.

[lrprn]

Don't you need enough to pay a certain percentage of your debt, plus the trustee fees? I'm curious how low of a payment is allowed for $70K unsecured debt.

In Ch 13 you have to pay your creditors at least as much as they would have received in a Ch 7. As HHM already said, the courts consider the minimum amount of disposable income that can support a Ch 13 plan to be $100/month.

The amount of total debt has no direct relationship to the monthly Ch 13 payment. Ch 13 payments are determined by a complicated set of calculations and cross-comparisons on the Means Test and Schedules.

[coma]

Don't you need enough to pay a certain percentage of your debt, plus the trustee fees? I'm curious how low of a payment is allowed for $70K unsecured debt.

We have 76k, and $300 for 36 months.

[whtsamada]

How do they determine how many months you are going to have to pay for?

[HHM]

If you had read any posts on this site by now...you would know

1. ALL chapter 13's are going to last 60 months unless...

a. you can pay off 100% of the unsecured debt that you owe at the time of filing in less than 60 months, or...
b. you are below your state median income but still elect to file a chapter 13 (why you ask would someone elect to file a chapter 13 if below the state median income?, to save an asset like a house).

[CityGirl]

so why did the above poster get 36 months and had 76K in debt. Clearly he won't be paying that off at 100%

[lrprn]

so why did the above poster get 36 months and had 76K in debt. Clearly he won't be paying that off at 100%

Because the above poster filed Ch 13 before Oct 2005 when the bankruptcy law changed. Under the old law, Ch 13s could be set at any interval between 3 and 5 years. The current law is much more restrictive. Cases must be either 3 or 5 years, and as HHM explained, there are only a few circumstances now that allow for less than a five year Ch 13 filing.