Question/opinion needed...

[Skipper]

I live in AZ.

I will be filing in the Spring.

My income is below the means test for a family of four.

I have no calculated disposable income.

I DO have a HELOC (and credit card debt).

Question: As I would like to file under Chapter 13 due to the existence of a (now) unsecured HELOC that I would like to strip, along with credit card debt that I can no longer afford due a reduction in income. With no disposable income is this possible? If not, does anyone have a guess as to a minimum payment and/or time frame that would be acceptable to a Judge, in order to utilize Chapter 13 to strip a lien?

I have read about "Maney v. Kagenveama" in the Ninth Circuit, but I am unsure if that is now any sort of standard for Chapter 13 cases with no disposable income.

Final question (for now!): Since I will be a single filer (I am married, but the debt is in my name), should my wife have her own checking/savings account?

Thanks as always,

Skipper

[justbroke]

Question: As I would like to file under Chapter 13 due to the existence of a (now) unsecured HELOC that I would like to strip, along with credit card debt that I can no longer afford due a reduction in income. With no disposable income is this possible? If not, does anyone have a guess as to a minimum payment and/or time frame that would be acceptable to a Judge, in order to utilize Chapter 13 to strip a lien?

I'm in the 11th Circuit and a pro se filer. I have filed with no disposable income (negative DMI). I am in a 5 year plan. I have filed and won my motion to strip (avoid) the 2nd lien on my home. I pay everything (lien 1 and 2 cars) through the plan.

I have read about "Maney v. Kagenveama" in the Ninth Circuit, but I am unsure if that is now any sort of standard for Chapter 13 cases with no disposable income.

Yes, that's a landmark 9th Circuit case. Basically, if you have negative or no DMI, you can propose any plan, because they found the "applicable commitment period" (ACP) to be temporal. Since there was no DMI, then there is no mandatory ACP because there's nothing to pledge.

Final question (for now!): Since I will be a single filer (I am married, but the debt is in my name), should my wife have her own checking/savings account?

She could have her own, but her income still counts with yours. If you're doing this to make sure creditors don't try to go after your marital funds, that's a different question. What are you trying to do?

[Skipper]

I'm in the 11th Circuit and a pro se filer. I have filed with no disposable income (negative DMI). I am in a 5 year plan. I have filed and won my motion to strip (avoid) the 2nd lien on my home. I pay everything (lien 1 and 2 cars) through the plan.

Yes, that's a landmark 9th Circuit case. Basically, if you have negative or no DMI, you can propose any plan, because they found the "applicable commitment period" (ACP) to be temporal. Since there was no DMI, then there is no mandatory ACP because there's nothing to pledge.

She could have her own, but her income still counts with yours. If you're doing this to make sure creditors don't try to go after your marital funds, that's a different question. What are you trying to do?

1. Just for clarification, with a negative DMI, you now make your regular mortgage payment and two car payments through the plan? Is that required in your area?

2. I have a negative DMI and would like to propose no ACP. I was just curious if anyone else has been successful in this area.

3. I am concerned about her ability to pay the normal household expenses (food, gas for the cars, kid's needs) if my checking account is frozen. When I get paid , I normally budget a set amount for her to use for that pay period, by giving her a set amount (a check to cash), and then she uses the funds as needed for household needs. Maybe I am worried about nothing? (keeping in mind that my checking account has a line of credit attached to it, that most likely will still have a balance on it, even though it is current). Btw, my wife is in school, and has no income.

TIA,

Skipper

[justbroke]

1. Just for clarification, with a negative DMI, you now make your regular mortgage payment and two car payments through the plan? Is that required in your area?

Yes, we are required to pay all secured debt through the plan, unless we motion for and are granted leave to pay outside the plan.

2. I have a negative DMI and would like to propose no ACP. I was just curious if anyone else has been successful in this area.

It would be a fight unless you're in the 9th circuit.

3. I am concerned about her ability to pay the normal household expenses (food, gas for the cars, kid's needs) if my checking account is frozen. When I get paid , I normally budget a set amount for her to use for that pay period, by giving her a set amount (a check to cash), and then she uses the funds as needed for household needs. Maybe I am worried about nothing? (keeping in mind that my checking account has a line of credit attached to it, that most likely will still have a balance on it, even though it is current). Btw, my wife is in school, and has no income.

Well, you should move your banking to a bank where you don't hold credit accounts. Also, beware of credit unions as well.

[Skipper]

.

It would be a fight unless you're in the 9th circuit.

I am in the 9th Circuit...

Thanks for your input. Hopefully an attorney will see it the same way.

Skipper