Several CHP 13 questions

[Reddrocket07]

Should we include the house in repayment program?

I want to know what everyone's opinion is. My wife and I are going to file Chp.13. Should we include the house in the bankruptcy repayment plan or leave it off? As of right now, we are current with the mortgage, but when our student loans come off deferment in December, we will not be able to afford the house, cc bills, and student loans.

Cost of repayment plan?

Together my wife and I make $5,761.00 a month. We fail the means test because we make $1600 above the poverty level. We also have nearly $90,000 in student loan debt, $11,000 car loan, and $45,000 in credit card debt. We have no dependents. How much do think our repayment plan a month will be?

Married, but living separately

Finally, because of the distance for my job, I may have to move in with my parents during the week to cut cost expenses while my wife remains in the house because of where her job is located. Should we file under "married - living separately"? If it comes to this, then we qualify for Chp. 7 I believe.

[becky20]

Have you done a means test with an attorney? Just because you are over the income level doesn't mean you won't qualify for a ch 7. You're pretty close - we were over 10K over just on income allowances but when we did hte means test we did qualify for a ch 7. We opted for a 13 for other reasons, but don't just assume that becaue your income is over the level that you won't qualify. You're so close I'm guessing you could qualify...

Can you afford the house when the student loans come off deferrment if you don't have the cc debt? Not sure how the student loans will fit into the means test though - you may need to wait til December to file when your student loans come off deferment in order to count them in the means test, I'm guessing??? I'm not an expert though, I'm sure others will chime in...

[Reddrocket07]

Thanks for the response. I did a means test a year ago and I failed it which meant that my wife and I made too much. After a year of reflection, most of my bills are larger from late fees. I havent even used a credit card since Feb. 2007. So I doubt I will pass the means test tomorrow when I meet with a lawyer. Plus I took a means test online yesterday and failed it. I took it 3 times, the only time I passed it was when I selected the "married, but living separately" part of the demographic data. Considering that I will be moving in with my parents to be closer to work and to cut down on fuel costs, I wont be lying if I select that.

On some of my credit cards, I make the minimum payment, and all of the payment but $1.00 goes to interest. Its so very stressful with fuel and grocery prices rising!

[ccgirl]

My student loans were supposed to be paid outside the plan, but in Michigan they automatically go back into deferrment.

[Reddrocket07]

What happens with the interest while they are in deferment? Ill be maxxed out on Economic Hardship deferment in December. I heard that sometimes your student loans can ballon up larger than the debt you had when you entered BK because of the interest that collects during your repayment schedule.

[ccgirl]

My loans were consolidated with my cu, but then they had to by law sell them to the Michigan Higher Education. I call the Mich. ST. Loan place and one person said not to send anything and another person said I could send payments, but there would not be any paperwork. That person was not sure if the money would sit in an account until the ch 13 plan was discharged or if the payments would be applied. I also commented about the interest and he said that it does accumulate and compound throughout the plan. I am not sure though if my trustee is going to raise my ch 13 plan amount since I can't pay on my student loans I will have more disposible income. It kind of sucks!

[liz417]

Hi there Redrocket07,
Don't assume that you'll not qualify for ch 7 because you didn't pass the means test. Have you included all your expenses? Sometimes, we forget things that don't get billed monthly. What if you commuted from your home and "added" the extra charges for gasoline? My hubby commutes 130/m per day and our gas expenses are above the standard (we are filing ch 13 though).
As for your student loans, they will go into deferment and yes, with compounded interest.
Your best bet would be to interview several local attorneys, you may get 3 different opinions!!
Good Luck~

[Reddrocket07]

According to the information I researched, a household of 2 can only claim $380.00 in fuel costs. Which sucks, because I alone spend $80-$100 a week on gas, let alone my wife spends $30.00 a week on gas.

Is it possible to pay on your students loans 100% while on chp 13? Id much rather not pay 3x more on my student loans and be in a situation worse than before starting BK.