Simple chapter 13 question

[sdimichele]

Due to circumstances beyond my control, I'm forced to file chapter 13. My total debt is about $35,000. I know I do not qualify for chapter 7 due to the amount of money I make. I've done the means test, it says my disposabe income is 1,200.00 per month, it sure does not seem like that. My question is say if I agree to pay off, 100% of my debt, but ask to do it over the entire 60 months, this will have payments 600.00-700.00 per month, well below my so call disposable income, would the trustee/court agree to this, or will they take all of my disposable income?

[Jman30]

The Trustee will want to take ALL your disposable income....but under the new laws, you would most likely have to go out to 60 months anyway.

Have you talked to a lawyer?

[sdimichele]

I have not spoke with a laywer yet.

[Jman30]

I filed under the old laws, so I am not as privvy on the law as some of the other posters are.

But I can tell that no matter how long you file for...the Trustee will take all your disposable income. You can certainly talk to a lawyer and see what your situation is. But like I said, and I am sure others can correct me, but I think chapter 13's are for 60 months now....anyone else want to chime in?

[SinkingFast]

You'll want to Consult with attnys just for the free info if nothing else.

As far as disposable income and expenses goes, maybe you aren't thinking of everything you spend money for each month:

http://www.bankruptcyforum.com/showt...ght=calculator

Maybe you'll find some things there that will jog your memory to include.

[sdimichele]

OK, if I give all my disposable income, say 1000.00/mth (I really don;t think I have that much left each month), even at 36 month, I'd be paying more than what I owe?

[SinkingFast]

You won't payback more than you owe to the Creditors.

BUT, you have to keep in mind, the Trustee get's a share too. Depending on where you live, the Trustee takes up to 10%. It's a Plan Administation Fee.

[Jman30]

SF, isn't there some rule under the new BK law about having to go 60 months? Are am I just a knucklehead?

[sdimichele]

You won't payback more than you owe to the Creditors.

BUT, you have to keep in mind, the Trustee get's a share too. Depending on where you live, the Trustee takes up to 10%. It's a Plan Administation Fee.

even if thay take 10%, it still would equal more than what I owe if thay took all disposable income. I want to pay all my dbty, just not 1200.00.mth

[Minnymouth]

You need to contact an attorney in your area and have a free consultation with him and see what your options are and he will give you a general idea of where you stand and what your payments might be..... based on your situtation.

[SinkingFast]

SF, isn't there some rule under the new BK law about having to go 60 months? Are am I just a knucklehead?

You are right about that, Jman.

People under the Median who want or need to file Ch 13 typically get a 36 month payment plan.

People over the Median filing Ch 13 typically get a 60 month plan.

BUT, people who are paying back 100%, where their disposable income level is such that would allow for payout prior to 60 months,..............

Could be the Court would take all disposable income/mo and make the payment plan shorter than 60 months. I've seen others post here about being in plans shorter than 60 months.

[SinkingFast]

You need to contact an attorney in your area and have a free consultation with him and see what your options are and he will give you a general idea of where you stand and what your payments might be..... based on your situtation.

Ditto's there to what Minny said.

[Interlaw]

You are right about that, Jman.

People under the Median who want or need to file Ch 13 typically get a 36 month payment plan.

People over the Median filing Ch 13 typically get a 60 month plan.

BUT, people who are paying back 100%, where their disposable income level is such that would allow for payout prior to 60 months,..............

Could be the Court would take all disposable income/mo and make the payment plan shorter than 60 months. I've seen others post here about being in plans shorter than 60 months.

You are correct about the 36/60 month division. But filling out the B22C (it is called the Means Test in a Chapter 7 and the "Statement of Current Monthly Income and Calculation of Commitment Period" in a Chapter 13--which is why lawyers call it the B22C!) is a royal pain, even for an experienced bankruptcy attorney. And in the vast majority of cases, it is completely irrelevant.

The ultimate answer really depends on the details of the OP's situation and the practice of the local Trustee.

Also note that merely because someone's income is above the median income for a family of similar size to a debtor's household doesn't mean that he/she can't qualify for a Chapter 7. I have filed for a number of above-median clients who "fail" the means test.

Brett Weiss

Maryland, DC and Federal bars
Member, National Association of Consumer Bankruptcy Attorneys