New baby during chapter 13

[moses911]

We filed chapter 13 and now waiting for 341 meeting and confirmation. We also find out that the wife is pregnant. So after we have the baby we will modify the plan. Anyone been in similar situation before? And how much you can bring down the payment by having new baby?

[LadyInTheRed]

You should be able to amend your plan to decrease the payments by your increased expenses. In fact, if your wife will have pregnancy related medical expenses that won't be covered by insurance, you might want to talk to your attorney about amending the plan now to take those into account. If you have arrears on secured debt or non exempt assets you are paying for in the plan, your ability to lower the payment may be limited.

If the new household member causes you to qualify for a Chap 7 discharge, you may be able to convert to a Chap 7.

[moses911]

Thanks for your response. Unfortunately with the new baby will not qualify for chapter 7 however I was wondering how much my payment could go down roughly. Are we looking at 300 dollars or is that too unrealistic?

[LadyInTheRed]

It will depend on what your actual increase in expenses are. $300 sounds reasonable to me, but I have no experience on which to base that. Means testing standards are probably a good guide. For the "food, clothing and other items allowance," a 3 person household is allowed $246 more than a 2 person household. A 4 person household is allowed $272 more than a 3 person household. For each person over 4, an additional $325 is allowed. In addition to that, you are allowed $49 person for healthcare in addition to any increase you may have in your insurance premiums. So, that gets you to an increase in expenses of about $300 if you are currently a two person household. If you will both work, you will have to pay for child care too.

[LadyInTheRed]

Congratulations on the new baby, by the way!

[moses911]

Thanks again. We are currently 4 and the baby is due in November. Ya I'm trying to justify the school cost currently in private school but the wife isn't working. I'm sure the trustee will object but will see how it goes