Confused...

[seanf12]

I just did an initial consultation with an attorney and gave him all of my financial info. Here is my basic monthly info:

Take home: $6000
Unsecured CC Debt: $118k

I have 1 car payed for, and another leased vehicle we just opened up. I am current on all credit cards and mortgage payments

He is telling me that most payments plans are $250 - $350\month. if this is true, then at the end of the month, even after paying all bills and expenses (groceries, utilities, etc.), I would end up with nearly $1k left over every month. Does this sound too good to be true? I was under the impression that the trustee will take all disposable income. Is it typical to have $$ left over after all bills are paid, and if so how much is common?

I live in MA if that makes a difference


Thanks

[aa06a47]

Your take home is well above the average, so I would assume your payment will be well above the average. I would say your payment will be 4 figures.

[arkienurse]

I just did an initial consultation with an attorney and gave him all of my financial info. Here is my basic monthly info:

Take home: $6000
Unsecured CC Debt: $118k

I have 1 car payed for, and another leased vehicle we just opened up. I am current on all credit cards and mortgage payments

He is telling me that most payments plans are $250 - $350\month. if this is true, then at the end of the month, even after paying all bills and expenses (groceries, utilities, etc.), I would end up with nearly $1k left over every month. Does this sound too good to be true? I was under the impression that the trustee will take all disposable income. Is it typical to have $$ left over after all bills are paid, and if so how much is common?

I live in MA if that makes a difference


Thanks

I would definitly consult at least a few more attorneys and see what they say. I would definitely be leary of them saying your payment will be so small. We had take home of around 3000 when we filed, and were told our payment would be around 700 a month. It came in at 1200 for the final amount.
Yes, it is supposed to be your disposable income. A good attorney will help you with your budget to pad it where you can and give you some wiggle room.

[seanf12]

Interestingly enough, I completed the means test at http://www.legalconsumer.com/bankrup...means-test.php
and it too said I could theoretically pay $397.

When completeing that means test above, and you computer the Monthly Taxes field under "other necessary taxes" section, is that your federal and state income tax that is withheld?

[MajorMike]

There is NO way an attorney can say what the AVERAGE is, because EVERYONE is different based on their expendable income after expenses. How many in your family? What state are you in??

[seanf12]

I tend to agree, which is why I think it is too good to be true. I live in MA, and there are 5 of us in my family (me, wife, 3 kids)

[seanf12]

For those of you currently in a plan, do you typically have any left over money at the end of the month?

[MajorMike]

and nobody can tell you it sounds like you would be in 6 figures. For a family of five in MA, the median income is about $$95,000. Are you above this income? If not, then you may qualify for a chapter 7.
Also, expenses for a family of 5 are quite high, so you may not pay more then what you think. Call at least 3 attorneys, and set up appointments to talk to them about all your questions.

Massachusetts ( 4 people ) $88,179 add $6900 for additional person

[seanf12]

Yes, I am way above that income (actually the median in Massachusetts is $96,000, but I am still above that)

Thanks for your help

[MajorMike]

Also you have the wrong state in there. You need MA...
TRy this:

http://www.legalconsumer.com/bankruptcy/bankruptcy-means-test.php?ZIP=02101&ST=MA&CBSA=14460&FEDCT=MA&CITY=BOSTON&METRO=Boston-Cambridge-Quincy%2C+MA-NH

[MajorMike]

Even if you're about it, your expenses can show you below it after you take the means test. Take it again...and do it with MA.....use the link above. You still may qualify for a 7. This is why you need to speak with 2-3 attorneys. They could get you within a 7 if they know what they're doing.

[car67]

Really no matter what the payment is its better to have the protection of court and reduction of debt if its causing stress

[seanf12]

I just double-checked and I did have the correct state in the means test (I posted the wrong link, sorry).

[qwertysue]

The attorney might also be using figures that he knows will be acceptable to the trustee--for example in our area I've seen cell phone allowances up to $300 a month (ours isn't quite that high, but it didn't get questioned and I thought it would)!!!

Keep in mind that the budget covers things you may not have been able to buy while in debt--clothes, for example.


.

[seanf12]

So when I sit down with the attorney and build a Chapter 1 budget, what are some the items we can account for (besides the typical stuff such as utilities, mortgage, etc.). Do we account for items such clothing, entertainment, gym memberhships, etc.?

Thanks again to everyone to everyone who has responded!