Can I be pushed into a CH.13

[nicole38]

I live in the state of MD.I have no assets,I live at home with parents whom I pay rent too.My car is in their name but I pay the insurance of 345 and payment of 574 every month.I pass the means test.Is there any way that I could be forced into a Ch. 13?

[BROKENN]

How much disposable money do you have left after your BK? Income vs Expenses?

[nicole38]

around 210 a month

[pa308]

Check your expenses closely. I had read that if your disposable income was greater that like 133 or so you could be moved to 13.

[DaisyMae]

You are really paying almost $1000 a month to drive that car?

Plus gas?

[BROKENN]

You have health, phone, food etc.. to use.

Here is a great site I like to figure means and exemptions. Try it out and study how they figure means and disposable income:

http://legalconsumer.com/bankruptcy/means-test/index.php

[JRScott]

You need your income at the end of your expenses to show less than 167 dollars per month to avoid the Chapter 13.

Also be ready to prove that you pay for the car and car insurance, perhaps a notarized deal with your parents in writing.

[lrprn]

You need your income at the end of your expenses to show less than 167 dollars per month to avoid the Chapter 13.

Also be ready to prove that you pay for the car and car insurance, perhaps a notarized deal with your parents in writing.

As JR says, you have to prove with a contract that although you aren't the lender of record, you are resposibile for making the payments. You also need a renter's contract with your parents to be able to count the rent into your expenses.

Be sure those contracts are signed and notarized before you file bk. Even then, you may be advised to wait to file and make the payments under the contracts for a few months to make the arrangement easier to justify if the trustee questions it.

You can't count expenses that you are making if you aren't the debtor of record. In this case, since it's your parents, it's best to legitimize the expenses with contracts to make sure they can't be challenged by the trustee.

If the rent and car payment are challenged and the court finds they can't be counted as expenses, then without them you could have enough income left to have sufficient disposable income left to be pushed into a 13.

It's time to stop guessing and set up appointments for free or low cost initial consultations with 3-4 experienced bk lawyers in your area. You really need expert, local opinions about what's going to fly in your case.

[nicole38]

I am meeting with a lawyer later this week.The car payment and car insurance comes out of my bank account monthly.I have hand written reciepts from my parents showing that I pay them rent every month