Let's say that I have a disposible income of $300 a month that I could use in a Chapter 13. But, I have have about $50,000 to repay from deficiencies from secured creditors (would give up two properties with negative equity in the BK) and about $25,000 in unsecured debt. There is no way that I would be able to repay all that back with my disposable income over the 3-5 year repayment plan. After my repayment plan has finished and I still haven't repaid all the money to the secured creditor, can they then still come after me and sue me for the remainder or would the remainder be discharged in the BK? I live in Florida. Also, let's say that I only had about $100 of disposable income, would the court deem that that isn't enough to repay and convert it to a Chapter 7? I'd rather do a chapter 7 if at all possible. Thanks.
-
-
chapter 13
In a chapter 13 plan, all "secured" debt (mortgage,cars, IRS) must be paid back at 100 percent. Unsecured debt would receive a percentage with the remaining portion "discharged" at the end of the plan. There are many variables that determine the viability of the plan, including the "best test of creditors" which means that in a chapter 13, the unsecured creditor must recieve as much as they would have received in a chapter 7 etc. If you have vehicles that you are upside down on, then those can be "crammed down" in your plan to FMV (paid at 100 percent) and then the remaining amount would be paid the at the same rate as all other unsecured creditors. Talk to a couple of BK lawyers in your area. Take your expenses and your income and he/she will let you know if a chapter 13 is right for you. Good luck
Comment