Chapter 13 Minimum floor

[5sracing]

My attorney keeps mentioning that I have a minimum floor that I can not go below for my payments in my chapter 13 plan. Im at a 56% payback right now, what is this minimum floor he keeps talking about that I can not go below.

I would like other feedback and compare what his story is on this. Could someone verify where this is in the bankruptcy code?

[daytona]

Well I'm sure it depends on the State you are in....but it also depends on what creditors would get in a CH7 liquidation. A CH13 MUST repay at LEAST what the creditors would get in a CH7 liquidation and I bet that is why your min is 56%.

[debtinohio]

I had 1 attorney try to force a 75% payback which 80% of my take home pay, once I asked him to show me where in Ohio law it said because of my income it requires a set payback % he gave up and we mutually agreed to end our contract and I hired someone else. He basically wanted to push a plan through that was quaranteed to have 0 challenges so he didn't have to do any work.

My current attorney is at 10% payback and told me we can't go any lower because of Trustee fees, her fees, keeping my $32,000 car & $10,000 RV trailer (both payments included in plan). I guess the 10% payback at least covers the value of the car & rv that I want to keep.

[klandsb]

debtinohio... I think its more about the equity you have in those 2 items.. Also, I would (from my own experience) not count on any % the attorney tells u he can get u. It has to be proven on paper and then the trustee nit picks at everything trying to get creditors there fair share.. Then she/he puts you on the % plan thats feasible... UGHHH.. My attorneys payback plan 17%, the trustee came back with 71%... Guess how much they are taking out of my wages... hmmmmmm yep 71% at present...

[daytona]

In Ohio attorneys have to "propose" a payment plan %, but it is not set in stone. CH13's can be modified up or down depending on your future situation while in the plan. I'm actually suprised your attoney thinks you can keep the RV trailer since it would usually be considered a "luxuary item" ie, you don't need it.....Remember a Ch13 has to pay back at LEAST what unsecured would get in a CH7 after exemptions and that could be why your % payback is what it is.

[klandsb]

I am trying to understand what my % after exemption would be. I have maybe $8000.00 equity in my house. And thats a big MAYBE ...None in my car and everything else was under the allowable exemptions .

[daytona]

Klandsb-

In a CH13 you have to pay back all "disposable income" left over after paying all of your "allowable expenses". If after paying your; taxes, mortgage, cars, food, utility, etc, etc, and you have 1000 a month left over you have to pay back 1000/mo until 100% or 5yrs pass unless the plan gets modified to a lower monthly amount due to changed circumstances...like a loss in income, more kids, etc.

If you take the 8000 in equity in your house that is non exempt (for arguments sake) that is technically the MINIMUM you would have to pay back in a CH13. I would venture to guess that your plan is paying back way more than 8,000 so this would be a non-issue for you.

In a CH13 exemptions only come into play to set a "minimum" repayment amount..otherwise exemptions do not matter.

Read the sticky at the top of the forum for % payback (it does not matter) for a more more details.

[klandsb]

Thanks for your help.... I have read that and more than once actually ...
As you would see in my other post I just believe my pmts should be lower.. Orig the lawyer had it at close to $1200 a mth w/secured included. After the trustee did her thing she came back with $1600... but it sucks because she went strickly by the I & J schedules which my lawyer SCREWED up...I am mad at myself for not checking it better but I feel my lawyer is getting paid good money even though its thru the plan and he does this everyday... Everytime I talk to him or the paralegal its like oh yea we will take care of that ...UGHHHHHH... My 341 is Monday so we will see... I want to demand him to correct the error NOW well maybe like YESTERDAY