What about the difference in my current payments and post filing? Do I keep it?

[GettaLoadOff]

I'm paying around 1100 a month on unsecured debt. If I file a 13, dropping the creditors' payments to a certain amount, what happens to the difference in what I'm paying now and what I will be paying? Do they somehow throw that back into the calculation for payback or do I pocket the change? Maybe I'm reading too much into this...

[kornellred]

All of your calculated disposable income will be paid into a Chapter 13 plan. The only way to determine how much that will be is to run the numbers on your own or with an attorney.
If you can afford to pay $1100 per month to support unsecured debt there is no point in filing for Chapter 13 protection. You must realize, however, that the debt is almost guaranteed to be endless, because you will tend to keep using credit. If you can live with that fact, then forget about bankruptcy.
There is bound to be a difference between what you are paying to support your debt and what a Chapter 13 plan payment will be. What you do with the difference is pretty much up to you.

[lrprn]

I'm paying around 1100 a month on unsecured debt. If I file a 13, dropping the creditors' payments to a certain amount, what happens to the difference in what I'm paying now and what I will be paying? Do they somehow throw that back into the calculation for payback or do I pocket the change? Maybe I'm reading too much into this...

If you file a Ch 7 or a Ch 13, you don't get to include your unsecured debt in your expenses on the Means Test - only your secured debt, asset equity, and living expenses (some determined by the court, some your own).

Your monthly 13 payment is calculated based on very complex cross-interactions between your gross income from all sources the six previous full calendar months before you file, the equity in your assets that you plan to keep, what you can protect with your state's bk exemptions, and your real and govt-determined expenses on both the Means Test and Schedules.

It's not nearly as simple as taking your net income and substracting your real expenses. Only an experienced bk lawyer can tell you what your monthly payment is likely to be.

[GettaLoadOff]

[MommyMc]

In our case, I'm able to have a little money left over every month after paying the trustee. Some months are better then others just depending on the month. The "extra" money comes from not using all that I was given in my budget, ie: for a family of 6 we are budgeted $1894 a month for food, clothing, household supplies, services, personal care and misc. Of course we don't buy clothes each month, so money gets set aside for when the new school year starts. (I also shop garage sales and second hand stores...saves lots of money!) I utilize coupons and sales when grocery shopping. I do my own hair coloring now and also cut my kids hair myself. All of this saves money, so yes, I have money left over at the end of the month. It's all about learning to budget and learning to save where you can. We use to eat out 3-4 meals a week. Now we eat out once a month and we no longer get fast food. It's all about knowing where your money is going and learning to live without some things. If my 4 kids can learn to live without things and still be happy so can us adults! Do I miss eating out? Sometimes, but I certainly (and so do my kids) appreciate it more when it does happen.
Will you have money left over at the end of the month? It's up to you and how willing you are to change your lifestyle. I learned a lot about myself during this whole process, I'm happier now, I sleep at night and I know my kids are happy and healthy.
Good luck to you!!!