Chapter 13 plan - details?

[PoorGrammyinBK7]

I was wondering if any of you who have already been through this could share some of the details about how to develop or write a ch 13 "plan"?

Does your attorney work with you on it or is it mostly up to you? What are the rules?

I am still unclear as to how it works. If we have to file soon, our last 6 months income will include over $2K per month that we no longer have coming in. Does that count for disposable income when it is no longer there?

On our current income, we have a negative "disposable"
income.

[rrockinggramma]

if you have income going away, then wait to file until that has been gone 6 months. Otherwise your payment will be higher than you want. There are many variables in a chapter 13 plan, who files, secured claims vs unsecured, priority debt etc but in essence it is your income (monthly) minus your monthly expenses and what is left over becomes your trustee payment. Now those of us who are already in the chapter 13 know that the budget is the MOST important thing you and your attorney can develop. It determines whether you make it or not in your chapter 13. So think of every contingency that would happen, could happen, should happen and you should be fine.

[Mom2one]

See thats how we are as well it shows that we are getting about 700 dollars that is not there now. I am hopingto wait until December to file, but I am worried about getting sued. I am hoping for the best preparing for the worst...
We are on a cash only basis now, so we will see.

Christine

[Flamingo]

When you retain your attorney, you will be given a complete listing of things that you will need to fill out and return to him/her. Part of that listing will be an itemization of every room in your house and the value of the items in it, including garage and any outdoor sheds, equipment, boats, etc. That listing will also have you break down all your financial information and what you spend per month on household items, entertainment, etc., etc., etc. When you return that listing to the attorney, he/she will go over it with you so that the items listed will fall within the guidelines for your district as to limits and a good attorney will ensure you have enough wiggle room so that you are able to make those plan payments and not have your plan fail.

The reason most plans fail is that the payments just cannot be made; due to either the budget being too tight to begin with or the filer(s) just cannot do a lifestyle change and stay within any budget; therefore dipping into money that should go for the Plan payment.

Any money that you have coming in for the six months prior to filing will be utilized as your income (a Plan cannot be based on income not yet earned). So the advice given to you to wait to a six month point after the receipt of that $6,000 is correct.

[holding on]

For means test yes, that extra 700 stinks, so if you can wait definitely wait. But if you're forced into a 13 and you are not getting that anymore, you won't include that on your Ch13 plan schedules.

Oh man I can't agree more, that budget is very very important like rockinggramma says. If you have to do it, go over it several times, find out what the IRS/County exemptions and allowances are, look where you can cut out stuff, look where you can boost stuff, and then discuss with your lawyer just how reasonable it will look to the trustee.