Chapter 13 Fees

[hudriverguy]

Hello all. I am very new to this and I need your expertise.
I contacted an attorney and have decided to file BK Chap 13.
I was told my monthly payment would be $82 for 5 years.
(I owe$ 70000 unsecured and own a $14000. car) They will
only carry 1000. in the payment plan. Is this normal or should
I look for a different law firm. My only income is WC Pension.


Thank you all in advance.

H

[HHM]

You should decide on your attorney based on your comfort level and expertise, not based on the fee or fee structure.

Some attorneys require full payment of chapter 13 fees up front, some roll a portion of the fee into the plan. Most require a pretty good portion upfront.

With a such a small payment, why are you even filing chapter 13 in the first place? Why don't you qualify or otherwise want to file a chapter 7.

[hudriverguy]

The reason I am filing a chapter 13 is I own about 4000. in non exempt
property which I want to keep. Also, if I did a seven I would only get
2400 for my car. I need it so I would have to pay the trustee about
8-10000 in monthly increments to keep it. If anyone knows how I can
keep my car let me know. Another problem is that I am disabled and
would have to give up my car insurance til I got another. I would
be put in an assigned risk-doubling or tripling my premium since I would be
considered a new insured if it is over 30 days to get another.

[HHM]

What do you mean by "I would only get $2,400 for my car"?

You owe $70,000 in unsecured and $14,000 on a car and you are going to lock in a chapter 13 over $4,000 when you are on a fixed income. What exactly is this non-exempt asset you "must" keep.

[optimistic1]

I agree with HHM, give up your non-exempt assets, and discharge your debts through a Ch.7, and then go buy your non-exempt assets back somewhere else.

[hudriverguy]

Let me clear up the car. It is paid in full with a clean title only in my name.
I paid cash for it. The 2400 is the amount you get in NYS when you turn it
in at Chapter 7. I think they call it an exemption. Why would I want to
pay for the car again? I hope I have clarified my problem.

H