Chapter 13 plan

[katze]

What determines the length of your plan? If all secured creditors can be paid in 36 months but unsecured creditors get little or nothing, will it still get confirmed?

[HHM]

Its not so much about the percentage to unsecureds, its about your disposable income, you are required to devote all your disposable income to a chapter 13 plan for 36 months. The other factor is the percentage unsecureds would get in a chapter 7. If unsecureds would get less in your proposed chapter 13 than they would if you filed a chapter 7, then the plan will not get confirmed, if the unsecureds get the same or more in your plan, and you plan is only 36 months, they it should be confirmed.

[ljp]

Hi,
Can you give me the definition for : Disposable Income (As Chapter 13 uses it )

Thanks

[HHM]

Disposable income is the amount money left over at the end of the month after payment of your "reasonably necessary living expenses".

Does that help.

[edwards2]

I have a question about the percentage and unsecureds/secureds. What do you mean about percentages to unsecureds in a Chapter 7? I thought if you were a non-asset case you werent paying the unsecureds...

[HHM]

A little known requirement of a Chapter 13 Plan is a Liquidation Value analysis (well, most attorney's know about it). Basically, it adds up all your asset equity, subtracts the costs of a Chapter 7, subtracts exemptions and liens, and that is the Net equity. If the net equity is greater than zero, your plan must at least provide that amount amount to your unsecureds.

If your case would truly be a no-asset case under a Chapter 7, then you have nothing to worry about.

[edwards2]

Thanks for explaining and the optimism. My nerves are beyond shot.