does all disposable income go towards chp13 payback?

[thebluebunny]

I'm looking to file chapter 13. Sorry if i'm long-winded, but here's the story. Well, bottom line is, I was stupid, lol Was living with a guy; had all my debts paid off and no credit cards. he talked me into getting more credit cards so that i could "get my credit rating back up." soon those cards were up the the limit helping him pay his bills & such. he was an owner-operator truck driver. He decided to file chp7 and was discharged Nov 2007. We broke up when he originally filed in mid 2007, so all credit cards with both names on them, plus the few with only my name on them, because my bills alone. When I moved out, i went from a combined income of over $130k per year to a single income of under $30k. I thought i could pay them all back on my own, but it just didn't happen. I recently started a new job but had to take a $10k cut in pay, so now my income is less than $25k. I know, if i were still living by myself, i could file chp7 easily. but I couldn't afford to live on my own, so am living with someone else right now. My laywer says that since there are two people in the household, they have to use our combined income on the means test, even though my roommate has nothing to do with my debts. So our combined income is about 10k over the median for our state. So my lawyer says i have to file chapter 13. This will allow me to keep my car, but it is considered a 100% payback of all credit cards and the car over 5 years. It will cost me just under $500 a month for the 5 years. My net pay per month right now is just over $1300. I pay all utilities/cable/interent/cell bills in the household while my roomie pays mortgage & house insurance. Utilities and my car insurance run me an average of $650 per month. That, minus $485 for payback, would leave me with about $205 a month for food, gas, car insurance and necessities. Does that sound right to anyone? So for the next 5 years, i either need to take on a 2nd job, or have absolutely no money to save, is that right? I'm 48 and would really like to start putting something away to retire on, but don't see that happening. Oh, and my total debts are about $15k on the car and about $12k on unsecured debts. Thanks for any comments.

[tofargone]

Time to talk to another lawyer. If your roommate and you do not share money there is no reason to include him/her. You will have to show you have to pay your part of rent, utilities, and so on. As long as you can show you are basically renting a room you should be ok

[chloe0724]

I agree. Talk to another attorney. Combined income should only be needed if you;re married.

[WoodSprite]

Sorry if this only adds to the confusion, but check these two links out:

http://www.************************/2007/10/25/is-my-roommate-considered-part-of-my-household/

http://www.************************/2007/10/28/can-i-include-my-roommate-in-my-household-size/

The first one would seem to indicate that your "household" only includes anyone living in your home who also makes an appearance on your tax returns.

But the second one, by the same author, seems to indicate that a housemate who either makes very little income, or contributes little to the shared expenses of the house could be to your benefit, since you get to add him/her to your household, and therefore raise your allowable median income.

Is your combined income 10K over the median for a 2-person household? Do you split the household bills 50/50?

Whatever - there is no way a person making under $25K (like me, for instance!) should be forced into a 13. No way. I'd definitely see another lawyer.