chapter 13 and under median income level

[carolen]

If you are under the median income level and going to file chapter 13 because of owning home (within equity limits) and vehicles totaling 6000, in value which I believe is about 3275 more than is allowed. .would you estimate your monthly payment by dividing the 3275 over the length of the plan and add to it the attorney fee's and trustee fees? I realize if you have more dmi that it would go to creditors, but I am trying to figure the minimum dmi that they would approve a plan.

[LadyInTheRed]

Yes, that his how you would figure out the minimum payment. If you have any arrears on your home or vehicle loans or any priority debt, you need to add that to your calculation as well.

Are you sure you can't exempt the vehicles using the wildcard exemption? How much equity is in your home?

[carolen]

Our equity is too much. House is worth 400,000 we owe 100,000 on the note but the house is owned by multiple people putting our equity at 75,000. The house is current nothing due in back payments, nothing due in taxes, child support or anything like that. We do have student loan debt and the credit cards. We are still a few months away as the lawyers I have been to are telling me to get 6 months beyond any ui payments so they are not included in our income average. We have a car payment but I am going to pay that outside of the plan as well as the mortgage so the plan will just have the value of the other 2 vehicles and what ever the charges for attorney and trustee are.

[LadyInTheRed]

Ah, so no wildcard. Have you considered the possibility of buying the non-exempt portion of one of the vehicles from the trustee? Or, let the trustee take a car and buy another one? Or, sell a car and finance a different one with a small enough down payment to avoid having too much equity? Of course, you would need to make sure you will be able to afford the car payment once you are done with the BK.

It would be a shame to have to go through a chapter 13 because of $3,275.

[carolen]

I never thought about it that way. Thank you I will be re-evaluting!