Lack of Income - Repayment Plans

[LandOnMyFeet]

If you do not meet the means test for a Chapter 7 Bankruptcy, then drop back to reviewing a Chapter 13 Bankruptcy it appears you still need enough income to satisfy the repayment plan in a Chapter 13 Bankruptcy. If you don't have the income to support the repayment plan how do you proceed. Is reducing the credit card balances an option, almost like debt settlement within a Chapter 13?

[justbroke]

That situation shouldn't exist. The Means Test (whether for Chapter 7 or Chapter 13) would show "disposable monthly income" (DMI). If that DMI is over about $207.92 (with an exception), then that means you do have money to fund a Chapter 13.

The only way I can see that to exist, is that you're trying to keep property that you can't afford (in the Chapter 13). Remember, a Chapter 13 is voluntary and no one can force you into one. You use a Chapter 13 to protect property (or if your DMI is more than about $207.92 a month).

You'd have to name a specific scenario where that situation would arise. I just don't see it.