About to file, confusion remains

[mattallica]

Hello.. I am about to start a chap. 13. From what I've been reading on this site and other sites - the repayment plan is basically all of your income, minus living expenses. I need to file for medical debt and some other unsecured debt.
I gross about $3500 a month, and my attorney told me my payment would be about $625 a month (60 mo). That includes my car payment which is currently at $580, student loans, and unsecured debt. Does that seem low to anyone? Also, if the court or whoever does it, says I need to pay (for example) $1500 a month, can I back out of it?? Would it be to late at my 314 meeting?

[justbroke]

You can always voluntarily dismiss your Chapter 13 at any time. Your payment may or may not go "up" a little, but the Chapter 13 plan payment is the amount necessary to pay your attorney fees (what's left of them), the trustee fees, any priority tax debt, and your payments on secured debts (like your car or home). Then, what's left over after all your "allowed" expenses have been taken out, is what they call your "disposable monthly income" or DMI. If your DMI is really low, then it's just really low.

If your attorney tells your it is $X, then expect $X. The Trustee in your case may complain or make your attorney prove that it should be $X rather than $Y, but that's just the nature of the Chapter 13 process.

Your car payment is actually going to go down, unless you very recently purchased it (less than 12 months ago). That's because the car gets a "technical" refinance where you pay the balance over 36-60 months and maybe even at a lower rate. This all depends on when your car was purchased, whether it was refinanced, what interest rates your have, and/or what the general rules are in your District.

I would lean on my attorney and have them answer anything which I do not understand. Or, you can ask us, but remember that your attorney has much more information about your Plan of Reorganization than we do.

[keepsmiling]

Sounds like you have a good attorney who crafted you a super plan. If you can make this work, you may be a poster child for why a 13 can be a great idea!
Welcome, good luck, and keep us posted!

[HHM]

Sounds really good actually since it includes your car payment.

[katztoo]

Not sure about your district but in our case the trustee and attorney negotiated BEFORE the 314 meeting. The trustee wanted a higher payment than we proposed and we went back and forth on that and agreed to surrender our tax refunds instead of a higher payment. This was all done before the meeting, the 314 was just formality. I don't think you would be required to make a higher payment decision on the spot during your hearing.