I am kind of confused on payback amounts and was wondering if someone could clarify and/or confirm what I think I am understanding. I am just going to make up some sample figures, as we haven't finished final paperwork to know for sure what our payback is going to be. For example lets say:
It is determined that there is $300.00 a month in disposable income. By 'old' law you must pay a minimum of 3 years resulting in paying $10,800.00. The Trustee will also take any and all tax returns consisting of an estimated $4,000.00 over a 3 year period. End results of payback would be $14,800.00 (if my math is correct). By the laws of the state the payback must be at least the amount of non-exempt property that they would have been able to receive in a Chapter 7 if the non-exempt assets had been sold.
In the above calculations, if the non-exempt property was definately less than the $14,800.00 payback amount, would it really make any difference in regards to what the present assets are worth? For example, it wouldn't matter if the non-exempt assets were worth $2,000 or $9,000; the payback would still be the minimum of almost $15,000?
Am I understanding these figures to be the correct calculations so far as the non-exempt assets are concerned. I am wondering because we only have about $6,000 in non-exempt assets and the payback being more than double of what our assets currently are seemed quite high. Especially considering our assets are not going to be increasing for at least 3 years until this is completed.
Thanks,
Paula
It is determined that there is $300.00 a month in disposable income. By 'old' law you must pay a minimum of 3 years resulting in paying $10,800.00. The Trustee will also take any and all tax returns consisting of an estimated $4,000.00 over a 3 year period. End results of payback would be $14,800.00 (if my math is correct). By the laws of the state the payback must be at least the amount of non-exempt property that they would have been able to receive in a Chapter 7 if the non-exempt assets had been sold.
In the above calculations, if the non-exempt property was definately less than the $14,800.00 payback amount, would it really make any difference in regards to what the present assets are worth? For example, it wouldn't matter if the non-exempt assets were worth $2,000 or $9,000; the payback would still be the minimum of almost $15,000?
Am I understanding these figures to be the correct calculations so far as the non-exempt assets are concerned. I am wondering because we only have about $6,000 in non-exempt assets and the payback being more than double of what our assets currently are seemed quite high. Especially considering our assets are not going to be increasing for at least 3 years until this is completed.
Thanks,
Paula