Means test and what I can learn?

[Mark80]

Been on the fence to file Chap13 for awhile. I have nothing late, but I am living by a thread still. I was wondering how close you can get to the final monthly payment without actually filing. I know there are variables as in what creditors agree to and so on. But I am trying to find out a "Worse" case scenario. I for awhile just figured a worse case would be 100% payback over 3 years. But then someone told me they dont do 3 years, and also told me it could be well over 100% of what you owe? What do you guys think? I would love to find out if things would be better after filing, or if I should just creep along and pray for a miracle.

Thanks!

[Dirk Squarejaw]

IIRC, the only way they still do a 3yr plan is if you are under median and filing a 13 to save a house. You pay back your lawyer fees and arrearages in the plan. You can get a shorter term in some areas if you are on a 100% payback and you could fully pay your creditors before 60 months. I've seen a few on here that had odd numbers like a 51-month plan or a 43-month plan and I believe thats the only other way to get less than 60mo.

[Mark80]

IIRC, the only way they still do a 3yr plan is if you are under median and filing a 13 to save a house. You pay back your lawyer fees and arrearages in the plan. You can get a shorter term in some areas if you are on a 100% payback and you could fully pay your creditors before 60 months. I've seen a few on here that had odd numbers like a 51-month plan or a 43-month plan and I believe thats the only other way to get less than 60mo.

Ok so I will get a 60 month then. Is 100% payback as bad as it gets, or can it go over 100%?

[holding on]

The way you would be paying over 100% of all your debt value is when you add the cost of the Trustee percentage and Lawyers fee into the your payments.

You can't be sure you are going to get a 60 month plan until you do all your schedules and find out how much disposable income you have each month and how that would pay into your plan (again, a rough estimate). Most people have more debt than what their disposable can finish paying in 60 months, so that's why most are in a 60 month plan since that's the max allowed.

[Mark80]

The way you would be paying over 100% of all your debt value is when you add the cost of the Trustee percentage and Lawyers fee into the your payments.

You can't be sure you are going to get a 60 month plan until you do all your schedules and find out how much disposable income you have each month and how that would pay into your plan (again, a rough estimate). Most people have more debt than what their disposable can finish paying in 60 months, so that's why most are in a 60 month plan since that's the max allowed.

That makes sense. So if I take 100% of my debt, divide by 60 months then outside of attorney fees and the trustee payments. Thats about it. It should only get less from there once my Schedules are completed?

[holding on]

Not quite. Chapter 13 is about what you can pay. I don't know how much your total debt is or how much income you have. You have to take your total income, then subtract your monthly expenses (don't include what you pay to creditors now of course) to get your disposable income. Then take your total debt and divide that by your monthly disposable income to get how many months it would take to pay off your debt. Again a very rough estimate as trustee and lawyers fees not included.

As many have said before, it's much better getting a free consultation from a few lawyers. Because you really don't want all of your disposable income going into the plan, wiggle room is definitely needed.