DMI vs Assets for one spouse filing

[boochase]

Therefore, using my example, it looks like I will be paying $292/month for 5 years. Thanks.

[SMinGA]

Ch. 13 payments have nothing to do with how much credit card debt you have.

Ch. 13 payments are about DMI, but there are some requirements in situations where people have non-exempt assets. Just as in ch. 7, you cannot discharge all of your debt and keep all your stuff/cash if you own more than you can exempt.

I don't know much about chpt 13, but I don't understand why you are basing your calculation on the tenants by the entirety exempt assets ? I would think if they are exempt,then that's it for that.

It does make sense to me though to base your repayment on the outstanding credit card debt....

[SMinGA]

You can't have your cake & eat it to.

That saying is relevant here.

There are rules to filing a ch. 13, as you pointed out the key one is about how creditors must get as much as they would in a ch. 7. So in order to keep your non-exempt assets of $17.5k, you must pay in at least $17.5k. It does not count what goes to your atty, though I am not sure if it includes what goes to the trustee. A payment of $200 won't do it for you. At this point your options are: find a way to pay more in, or give up some non-exempt assets. If you want a successful 13, those are the 2 routes open.

Under median filers have the option of a 36 month plan. All filers have the option of a 60 month plan. Why would someone choose 60 over 36? Well, if they could not afford enough to resolve their plan requirements in 36...

[OHBOY]

I don't know much about chpt 13, but I don't understand why you are basing your calculation on the tenants by the entirety exempt assets ? I would think if they are exempt,then that's it for that.

It does make sense to me though to base your repayment on the outstanding credit card debt....

[boochase]

I am still confused with this issue. I am the only spouse filing, and I reside in the state of Florida. The unsecured debt is mine only. My house is not totally underwater so the second mortgage cannot be stripped--hence that is why I am the only one filing. First, I understand DMI. Currently, the DMI is $200.00per month. The amount of credit card debt is $21K. We have a total $35K in assets, held jointly and considered tenants by the entirety in FL--based on info from my attorney. He also stated that the property does not have to be titled "tenants by the entirety" in FL; that all property held by a married couple meeting 5 criteria is automatically considered "tenants by the entirety." No other assets. Now, it looks like I would be paying
$200/month for five years (60 months). What circumstance would have to exist for me to get a three-year payback period?

Now, looking at the asset side. I understand that creditors are entitled to the same amount that they would get in a ch7 filing. Since my wife is NOT filing, then it seems that the total assets in the bankruptcy estate would equal only half the value of the assets ($35K/2=$17.5K). Now dividing $17.5K over a five-year period (60 months), it seems that my payment would be $292.00/month. It appears that the "asset test" has the higher monthly payment. Obviously, a three-year payback period would be a strain. Is this the payment that I will have to abide by going forward?

Thanks for the clarification.