Question: Secured debts current/CC's not

[1aliasfan]

I am trying to find some debt release. I have $42,000 in unsecured debt that is about 12 months behind. My husband and I lost a business last year and had to make the decision to only pay what we could. We got a tax refund of about $7500 and used it to catch up 3 months of payments on 2 cars and a motorcycle and pay some medical, and get the kids some things, so it is gone except for $700 which we are saving. I am waiting for a BK attorney to call me back. I will be filing alone but using his income. I filled out the Form B22C and come up with a positive $360 at the end. I am assuming that is good?

Is that my disposable income? I calculate that payment at $360 for 5 years at $21,600 to be paid to unsecured creditors. Is that doable? Like I said - cars, home are paid and we are able to meet other monthly expenses. My budget differs and we will struggle to come up with the payment for a trustee, but we will do it.

Any thoughts? (I am waiting to hear back from the attorney to see if I can file BK13. I need legal advise so I sent all information to him. I also have GE MoneyBank suing me thru Kramer & Frank in St. Louis and a court date on April 1 to answer a summons. I need to get these vultures off my back. I cannot file Chap 7 until 2011 - after September, but I cannot afford the harassment or I will lose my job.)

[EricaCallaha]

Is the debt in your name only?

[optimistic1]

Yes that is your disposable income.

If you calculated everything correctly, then, it sounds like you have a feasable plan. Be aware, though, that if you are above the median income, you will need to use the IRS standards for most of your expenses, unless you can justify the excess with receipts.

If the B22C is calculating you at $360, it is basing that on the IRS standards for expenses.

Be aware, that the $700 you are saving might need to be given to the trustee if it exceeds the state exemption for cash on hand.

If you are below the median income, then you will get to use your actual expenses for each category.

The payment (depending on your district, state) may not need anything go to your unsecured creditors.

You might just have to pay the rolled in attorney fees (if your attorney does that of course), and the trustee fees. But dont get your hopes up. Utilize your expenses and budget to the max, and then work backwards to fund a Ch.13 plan.

[1aliasfan]

The debt is in my name only, but his income needs to be used, as he helped create the debt.

The $700 will be used for the retainer for the attorney, so it won't be cash on hand once I do that.

I am above the median income for a family of 5 in the State of Kansas. I used only the IRS guidelines where needed. I did not input or request anything additional to cover any differences.

I was told I would need to pay at least what unsecured creditors would get in a Chapter 7, which would be 0 since I have no assets to sell. I am willing to pay some back to my creditors, so I am assuming that is what Chap 13 is for. I was hoping that since my other debts are current, that a judge would look favorably on me trying to pay back some unsecured debt.

(I am waiting to hear back from the attorney to see if I can file BK13. I need legal advise so I sent all information to him. I also have GE MoneyBank suing me thru Kramer & Frank in St. Louis and a court date on April 1 to answer a summons. I need to get these vultures off my back. I cannot file Chap 7 until 2011 - after September, but I cannot afford the harassment or I will lose my job.)

[optimistic1]

Im in the same boat as you, unable to file a Ch.7 for along time. So a 13 is necessary to rid myself of the leeches.

So, with that being said, all your unsecured creditors will receive based on B22C is $360 a month. Probably a much smaller burden than the original payments.

Your attorney should be able to easily devise a confirmable plan to help you.

If your are dissatisfied with him, try several others, I went to almost 10 attorneys.

[1aliasfan]

It is such a pain to find an attorney too. They want to charge me to talk to me, when I supplied all the paperwork and all I want is them to tell me if I can file. I sent paperwork to one attorney yesterday and hope to hear from him today. I have another on the hook too!

[optimistic1]

Dont waste your time with them. Find attorneys that do free consults, I have heard of some charging, thats ridiculous.