Hello all! I am stressed to the max and would like any bit of info I can get. First of all, we are a family of 6 and make about $110k a year. I first met with our attorney in May and after reviewing our income for the past 6 months, she said I would be forced to do Ch13 because of how much I made alone in Jan 2016. I had received a huge bonus for the previous year. So she advised us to wait until August and then we will do the Means test to see of we qualify for a ch 7. I'm terrified we will still have to do a Ch13 and more afraid that we will pay higher on our payments than I paid on our debt we are filing on. Also, she advised us to quit making payments on our unsecured debt, which I have, but we had a personal loan with our credit union and they also have the lien against our two vehicles which we intend to keep. The personal loan is now almost 3 months past due and I'm afraid they will repo my cars, which are current, before we can file. Has this happened to anyone else?
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When our 13 was filed, we too had a car loan and a personal loan through a credit union. The personal loan was considered to be secured debt because of the concept of cross-collateralization. We paid on both loans each month until the 13 was filed, so there was no threat of repo. We didn't pay the unsecured debt.
Under Chapter 13 you pay all disposable income after expenses that you list in your petition. That amount will pay both your secured and unsecured debt (except for that paid outside the 13 plan). In our case we paid our mortgage and credit union car loan outside the plan. Our disposable income paid the secured loans and taxes first, then when that was paid off in about a year for us, we started paying the unsecureds. For us, the monthly plan payment was substantially less than our CU personal loan, unsecured debt and taxes combined before we filed BK. Just ask your attorney how this is all handled in your court district and 13 trustee.
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