Is Chapter 13 an option?

[sassiebaz]

Hi all....I've posted almost everywhere but here in Chapter 13. Sounds like this is where I need to be asking my questions. I'd like some insight as to how a Ch13 would work for us and if it would be a possibility for our situation.
Our income is roughly $60K. We have about $20K in credit card debt. Our car payments are about $650 a month and we have 3 kids. Definatel live paycheck to paycheck. We dont own our home and have no assets. However, we have a Ch7 on our credit from 2003. My husband lost his job in June and I just went backt o work after being a stay at home mom for the last 7 years. Whats typical for our situaion? Will we even qualify for a ch13. My husband has been totallya gainst it, but I feel like the more calls we get and the fact that we are so far behind on payments we will eventually be sued and he may cave in and go for a 13. Any advice???

[sassiebaz]

No one???????

[HHM]

First, we don't live on this board...you only gave us less than 90 minutes to respond. Relax.

Is that $60K per year, before or after your husband lost his job.

Bottom line with a 13, you need to have money to pay the plan.

[sassiebaz]

Uh 90 seconds? Uh, ok.....I get it.....

[woeisme]

To file CH 13 you need to have disposable income to pay into the plan. After making all your secured payments, do you have any funds left over in your budget to pay into a CH 13 plan? You'd need to be a lot more detailed about your financial situation for someone to say if you could file CH 13 or not. You could take your financial paperwork to a lawyer consult and that would give you a much more realistic idea if this will work for you or not. If you are below the median income, you may only have to do a 3 year CH 13 instead of 5, which would really not be too bad.

[sassiebaz]

Yes, my husband is now working two jobs, and I guess if we dont pay any of our creditors, we do have income left over. So, I need to figure all of our living expenses? What would that include? We have 3 kids.....

[Flamingo]

Sassiebaz...have you reviewed all the "stickys" in this forum as to Chapter 13? They are chock full of information that can help you and probably answer a lot of your questions.

[sassiebaz]

Yes, I have. But it's still not clear. How do they determine how much we would owe? Is that based on our income? Is our prior BK a factor in that amount as well?

[sassiebaz]

Although my husband is still opposed, I will call lawyer and see about a consult. I need to have more info or we are going to drown......I dont understand his hesitation...Im so frustrated!!!

[woeisme]

payback is based on your income and expenses. a budget for a CH 13 really requires a lawyer, it's not something you want to tackle on your own because every district and trustee allows different expenses, so you need someone familiar with your area/trustee to make up a plan that will fly with them that has the most "wiggle room" possible. good luck.