Questions on just why my Chapter 13 payment quote was unbelievably high

[Shelly3630]

Why would it be fraud if my name is not on the property. I would'nt have owned it for at the very least 2 years. I had one lawyer come up with a 700 number payment with both of our incomes, then another come up pretty darn close with just my income. So it was kinda hard for me to really tell whether or not they would base the payment on both incomes. I don't see the real problem if we were to get a legal separation or heck a divorce and I move out for a while. Thats legal. How could they even think about basing the payment on his income if we were legally seperated or divorced. I would have paperwork and documents to prove it. I mean, I'm sure people get divorced and seperated over this very thing every day.

[newbie2]

Yes, they do base a Chapter 13 plan on all disposable income, and that income is based upon whomever contributes to the household (even if a spouse doesn't file.)

What you are proposing to do (legally separate to beat the system) is not something any of us would recommend. (Or, at least I don't think any of us would.) You have to swear that everything in your petition is true. Only you can answer as to whether you have the nerves to go through with that.

Yes, the fact that you have an enormous amount of equity does come in to play. I don't know how much you can exempt, but the portion you can't exempt has to be covered in the plan up to 100% of your unsecured debt. Think of it this way: You do have the money to pay your unsecured creditors, but you would have to sell your home to get the equity out to do so. The Chapter 13 is set up to have you make payments (the 600-700 a month for 5 years) so that you don't have to sell your home/property to pay your unsecured creditors.

Don't take your name off the property. The trustees can go back further than 2 years if they get a whiff of fraud.

[Shelly3630]

Ok, I got a quote on a Chapter 13 case for 600-700 a month payment for 5 years for around 30 grand in cc debt. We can't pay that. Since we are married and together I think that they may have based this payment on both of our incomes. Even though my
husband WILL NOT BE FILING. So I have two questions.....


1. If we were to get a legal separation and I literally move back into my parents
house with them for a few months, will they figure the payment on my income
alone. Believe me, if I had to get a legal seperation and move out I will. I want
to do this legally.

2. Or, is it the fact that we have 200,000 in equity on a home that has us resulted in
having that high of a payment, and it would'nt matter as to whether we were legal
together or legally separated?

3. Oh, and one more. If I were to take my name of off this house, which I can do, no
problem, then wait two years and would I be able to file for Chapter 7 since I would
have no real assests in my name.