A little help with a few of the basics

[daylate]

Having just filed a Chapter 7, I now find that my son is in some serious financial difficulties. I'm pretty sure he wouldn't qualify for a 7 and at the moment I don't have the strength to start researching a 13.(But tomorrow I will read the NOLO 13 and I have read some of the stickies here) I am just hoping for a few answers to the following

In a 13 when you calculate your DMI (I assumeon Schedule I&J) are you bound by the standards like you are in a 7 or is a reasonable budget enough?

Can you exempt cash with an unused homestead or a wild card (Fed exemptions)

Do you reaffirm a mortgage or does it just continue as before?

Does interest on cc debt quit accruing and if you complete the plan "go away"?

If you get annual bonuses as a regular (but not guaranteed) part of your compensation how does this figure in? If one year you get 20k but the next it could be 8 or 10 that has to make a difference doesn't it?

Can you use a credit card (or even get one) for business travel?

Not trying to be lazy here, just really tired and hoping for a quick start on trying to help my son.

Thanks for any help.

[justbroke]

In a Chapter 13, your DMI is calculated first by the Means Test and then by a review of Schedule I&J. It really depends on whether you are over or under the median. For over-the-median income filers, you must stay within the standards, or hve a very good reason to exceed them. In some cases, the Means Test (Form B22C) already provides for some areas where you may go over, like home energy costs. However, there are some areas where it may be more litigious if you put a higher amount than the standards, such as local housing costs if you are a renter.

You can still exempt cash on hand. A Chapter 13 actually still performs a "Chapter 7 liquidation test" and you must pay the unsecured creditors at least as much as they would have received had you liquidated in a Chapter 7.

You don't technically reaffirm a mortgage in a Chapter 7. You are only reorganizing. There is no "reaffirmation" agreement in a Chapter 13. The terms of the mortgage continue. Should you and the lender work out a modification, that is really dealt with outside the Plan of Reorganization, with the "approved" (or confirmed) payment amount listed in the Plan.

Interest on all unsecured debt, including debts owed to the IRS, stop accruing interest. Any portion of the unsecured debt that you don't pay back, if you're in a less than 100% plan, gets discharged at the end of the Chapter 13 upon entry of the discharge!

Bonuses are tough issues and I had the same problem. My lookback included my annual bonus, but I haven't received one since 2008 (when I filed). Mine are not guaranteed either. You can either create a Plan that seeks to surrender any bonuses, or list the average. In your case, I would not go with an average! A $20K annual bonus would bloat your plan payment by $1,667/month!!!

You cannot incur new debt without permission. However, some Districts allow you to incur small amounts of new debt without seeking permission. You could also ask the Trustee since this would be for business travel. I wouldn't expect to be able to be approved for any credit card (especially unsecured cards) after filing!

[daylate]

Thanks justbroke- As always your help is appreciated and helpful