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$40,000 debt $282 a month? Didn't expect so low

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    $40,000 debt $282 a month? Didn't expect so low

    Hey you guys. I filed bankruptcy last week and have to say I feel really good that I finally got my paperwork done and over with for the most part. Now I still have to face the judge and 341 meeting.

    I will admit I was pretty floored that he told me my payment would only be $282 a month. A little background: about $52,000 a year income but IRS is very generous on their expense allocations. The paralegal talked to a lawyer and she ok'd me claiming my gf since she hasn't worked in a while and I claim her on my taxes (she meets the qualifying relative standard for living with me all year)...etc...anyway, I was happy that my payment was so low (didn't expect it so low, really) but I was really shocked. My unsecured creditors are getting zero. I couldn't believe it.

    I do think they will object since I took out A LOT of money about 100-150 days before filing and realized that I couldn't keep spinning my wheels. I have a lot of gambling losses this year and I'm not proud of that fact but It's true. I do feel badly that he has my unsecureds getting nothing. What do you guys think the chances are of them objecting? I fully expect they will and in my mind i'm already preparing myself for about another $350 a month since I think they will accept less but NOT zero.

    However it works out I will be o.k. with it. I was trying to pay my bills off in 2 years and half killing myself to do it. I was paying about $1,700 a month so even if it is $650ish I will handle it. That's still over $1,000 a less than what I was paying and I didn't have money left over at the end of the month for food or ANYTHING, basically. Hence, that made me chase my gambling losses even more. A bad cycle that I realized I couldn't do anymore.

    I am not proud of what I did but I can honestly say with everything that I have that I didn't plan to file bankruptcy until I realized that I was only living to pay off my bills and It was brutal. If anyone has any advice I would greatly appreciate it. Strange as it sounds I feel like I do owe my creditors something because I have never been one to run from my bills and ruined a great credit score over all of this.

    #2
    Just don't go back to gambling with the money you have left over now. The trustee will tell you NO GAMBLING under protection and your case will get dismissed if you do.
    Also, we're only paying non-secured 5 percent..and make over 60K/year.
    Filed: October 1, 2007 341: December 10, 2007
    CONFIRMED: December 10, 2007
    Payment: $825 / Mo. for 5 Years-29 MONTHS OF Pmts Down 23 to go!

    Comment


      #3
      Originally posted by MajorMike View Post
      Also, we're only paying non-secured 5 percent..and make over 60K/year.
      For our newer members who are researching Ch 13....there is NO DIRECT RELATIONSHIP between your calculated monthly payment, how much you owe, how much you make, and the % payback to your creditors.

      Your calculated disposable income after completion of the Means Test and Schedules I and J is what determines how much your Ch 13 monthly payment will be.
      I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

      06/01/06 - Filed Ch 13
      06/28/06 - 341 Meeting
      07/18/06 - Confirmation Hearing - not confirmed, 3 objections
      10/05/06 - Hearing to resolve 2 trustee objections
      01/24/07 - Judge dismisses mortgage company objection
      09/27/07 - Confirmed at last!
      06/10/11 - Trustee confirms all payments made
      08/10/11 - DISCHARGED !

      10/02/11 - CASE CLOSED
      Countdown: 60 months paid, 0 months to go

      Comment


        #4
        Originally posted by lrprn View Post
        Your calculated disposable income after completion of the Means Test and Schedules I and J is what determines how much your Ch 13 monthly payment will be.
        Can I adjust that statement to say "how much your maximum Ch 13 monthly payment will be"?
        Chapter 13 Filed: 12/3/07
        Payments: 2/60

        Comment


          #5
          Originally posted by isitreal View Post
          Can I adjust that statement to say "how much your maximum Ch 13 monthly payment will be"?
          Whatever your disposable income shows on the Means Test and Schedules I and J is what determines your montlhy payment. It's a cold, hard figure.

          However, a well-experienced bankruptcy lawyer who files a lot of Ch 13 cases can make a huge difference minimizing your disposable income thus minimizing your monthly payment.

          Think about what an experienced tax preparer who knows the IRS rules inside and out can do with your tax return compared to doing your taxes yourself. I bet the experienced preparer can get you a much larger (and legal!) refund than you could on your own.

          Same thing in Ch 13. Finding and retaining an excellent Ch 13 lawyer is 80% of the Ch 13 battle. Your choice of attorneys alone can set you up from the start with a good chance or no chance to make it to the end of your plan.
          Last edited by lrprn; 12-11-2007, 03:58 PM.
          I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

          06/01/06 - Filed Ch 13
          06/28/06 - 341 Meeting
          07/18/06 - Confirmation Hearing - not confirmed, 3 objections
          10/05/06 - Hearing to resolve 2 trustee objections
          01/24/07 - Judge dismisses mortgage company objection
          09/27/07 - Confirmed at last!
          06/10/11 - Trustee confirms all payments made
          08/10/11 - DISCHARGED !

          10/02/11 - CASE CLOSED
          Countdown: 60 months paid, 0 months to go

          Comment


            #6
            Originally posted by lrprn View Post
            Whatever your disposable income shows on the Means Test and Schedules I and J is what determines your montlhy payment. It's a cold, hard figure.

            However, a well-experienced bankruptcy lawyer who files a lot of Ch 13 cases can make a huge difference minimizing your disposable income thus minimizing your monthly payment.

            Think about what an experienced tax preparer who knows the IRS rules inside and out can do with your tax return compared to doing your taxes yourself. I bet the experienced preparer can get you a much larger (and legal!) refund than you could on your own.

            Same thing in Ch 13. Finding and retaining an excellent Ch 13 lawyer is 80% of the Ch 13 battle. Your choice of attorneys alone can set you up from the start with a good chance or no chance to make it to the end of your plan.

            I have a question and maybe it means we would need to seek another attorney. I spoke with two different ones that said due to how low our debt is (would file only to save our house currently trying to work out a plan with the bank total debt approx. 24000) and how high our income is. That we would have to file a BK 13 plan that was for 60 months there for our payment would be about half of our disposable income (what we figured on our to est it).
            So did two different attorneys not tell us the truth? We are in Florida by the way.

            Comment


              #7
              Originally posted by nd2fxmess View Post
              I have a question and maybe it means we would need to seek another attorney. I spoke with two different ones that said due to how low our debt is (would file only to save our house currently trying to work out a plan with the bank total debt approx. 24000) and how high our income is. That we would have to file a BK 13 plan that was for 60 months there for our payment would be about half of our disposable income (what we figured on our to est it).
              So did two different attorneys not tell us the truth? We are in Florida by the way.
              These two attorneys are making (hopefully!) educated guesses about how much disposable income you will show on the Means Test and Schedules.

              With little secured debt and high income, unless you have unusual circumstances that help offset your income, that leaves more disposable income showing and typically makes the Ch 13 payment higher.

              I would meet with at least 2 more experienced Ch 13 attorneys who file at least 2-3 Ch 13 cases every month and have been in your local court for several years to see what they say about your situation.
              I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

              06/01/06 - Filed Ch 13
              06/28/06 - 341 Meeting
              07/18/06 - Confirmation Hearing - not confirmed, 3 objections
              10/05/06 - Hearing to resolve 2 trustee objections
              01/24/07 - Judge dismisses mortgage company objection
              09/27/07 - Confirmed at last!
              06/10/11 - Trustee confirms all payments made
              08/10/11 - DISCHARGED !

              10/02/11 - CASE CLOSED
              Countdown: 60 months paid, 0 months to go

              Comment


                #8
                what was the website you can go to to try and figure out your monthly payment???
                Converted to Chp 7 in July 341 AUG 3rd Went well!!!
                Trustee Paid Off Looking At Discharge!!! Might Be A Good After all!
                Discharge Date 10/02/09 Counting the days down

                Comment


                  #9
                  Originally posted by 253BK View Post
                  what was the website you can go to to try and figure out your monthly payment???
                  Here's an online Means Test calculator - http://www.legalconsumer.com/means-t...ator/index.php

                  And here's a link to the Schedules that went into effect Dec 1, 2007 - http://www.uscourts.gov/bankform/ - scroll down and look for B6A (Schedule A) through B6J (Schedule J). Schedule I minus Schedule J shows your disposable income (if any).

                  Remember that these forms are kind of like filling out your income tax forms. There's an art to filling them in with the maximum allowed in your district to minimize your monthly Ch 13 payment. It's not always the figure you think that it should be. That's where having a good lawyer who knows the practices of your local court and trustees makes all the difference.
                  Last edited by lrprn; 12-11-2007, 08:34 PM.
                  I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

                  06/01/06 - Filed Ch 13
                  06/28/06 - 341 Meeting
                  07/18/06 - Confirmation Hearing - not confirmed, 3 objections
                  10/05/06 - Hearing to resolve 2 trustee objections
                  01/24/07 - Judge dismisses mortgage company objection
                  09/27/07 - Confirmed at last!
                  06/10/11 - Trustee confirms all payments made
                  08/10/11 - DISCHARGED !

                  10/02/11 - CASE CLOSED
                  Countdown: 60 months paid, 0 months to go

                  Comment


                    #10
                    No Gambling ?

                    Just don't go back to gambling with the money you have left over now. The trustee will tell you NO GAMBLING under protection and your case will get dismissed if you do.
                    Also, we're only paying non-secured 5 percent..and make over 60K/year.


                    I don't think I ever heard a Trustee tell somebody they couldn't gamble, but I could be wrong ???

                    Just my 2 cents. Catchmeifyoucan
                    July 2006: Filed Ch13 :blink:
                    Oct 2006: Converted to Ch7 :clapping:
                    Jan 2007: DISCHARGED :clapping:
                    Nov 2007: CLOSED :yahoo::yahoo::yahoo:

                    Comment


                      #11
                      Nope, she said You are NOT allowed to Gamble while under protection of the stay. She looked right at me and said..."you understand this, correct?" I said, yes. She said, that could dismiss your case very quickly and I said, yes maam.
                      Filed: October 1, 2007 341: December 10, 2007
                      CONFIRMED: December 10, 2007
                      Payment: $825 / Mo. for 5 Years-29 MONTHS OF Pmts Down 23 to go!

                      Comment


                        #12
                        Originally posted by CATCHMEIFYOUCAN View Post
                        Just don't go back to gambling with the money you have left over now. The trustee will tell you NO GAMBLING under protection and your case will get dismissed if you do.
                        Also, we're only paying non-secured 5 percent..and make over 60K/year.


                        I don't think I ever heard a Trustee tell somebody they couldn't gamble, but I could be wrong ???

                        Just my 2 cents. Catchmeifyoucan

                        My trustee didn't say no gambling either, she just said.."there are specific rules concerning gambling, however never explained what the rules were. Best advice, don't gamble, even with your low payment!!!

                        I thought my payment was low too. Unfortunatly, when you on an all cash basis, no credit cards...etc., it can get hairey from time to time. If you have extra, don't gamble it, save it!!!
                        Chapter 13 Filed 4/03/06 :blink: 341 Meeting Complete 5/11/06 :yes2:
                        Plan Confirmation 6/16/06 :yahoo:
                        Discharged: 1/5/2010 :yahoo::yahoo::yahoo::yahoo:

                        Comment


                          #13
                          Originally posted by isitreal View Post
                          Can I adjust that statement to say "how much your maximum Ch 13 monthly payment will be"?

                          There is one other component of a Chapter 13 plan. Your unseured creditors can't get less in a 13 than, they'd have received in a 7.

                          Comment


                            #14
                            I'm wondering if the "No Gambling," remark is enforced during a BK process moreso in states that have casinos? The state of Virginia doesn't really have any laws about gambling in Va., well at least thats what my lawyer said. I called him up a week before my 341 meeting and told him I hit a jackpot for $1500 and I told him I spent it on necessary items, groceries etc, he said, not a problem and no need to bring it up at the 341 meeting. Ahhh well, every case is different.

                            Catchmeifyoucan
                            July 2006: Filed Ch13 :blink:
                            Oct 2006: Converted to Ch7 :clapping:
                            Jan 2007: DISCHARGED :clapping:
                            Nov 2007: CLOSED :yahoo::yahoo::yahoo:

                            Comment


                              #15
                              Originally posted by CATCHMEIFYOUCAN View Post
                              I'm wondering if the "No Gambling," remark is enforced during a BK process moreso in states that have casinos? The state of Virginia doesn't really have any laws about gambling in Va., well at least thats what my lawyer said. I called him up a week before my 341 meeting and told him I hit a jackpot for $1500 and I told him I spent it on necessary items, groceries etc, he said, not a problem and no need to bring it up at the 341 meeting. Ahhh well, every case is different.

                              Catchmeifyoucan
                              There are a crap load of them in Missouri....at least in the area I live in.
                              Chapter 13 Filed 4/03/06 :blink: 341 Meeting Complete 5/11/06 :yes2:
                              Plan Confirmation 6/16/06 :yahoo:
                              Discharged: 1/5/2010 :yahoo::yahoo::yahoo::yahoo:

                              Comment

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