My wife and I are considering chapter 13. I own a piece of property that has an old mobile home on it. I do not live on said property I rent my current home. I want to keep the property it is owned free and clear fair market would be about 40-45k. How does this factor into my repayment plan? Would this mean I’d have to do a 100% payback? When I do the calculations for net income and expenses we are only about 70 dollars in the black. Any advise or experience is appreciated!
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Your plan payment is driven by the highest of non-exempt equity paid to unsecured creditors, means test result, or disposable income. If you have $50k in non-exempt and $10k in case expenses, you'd need to pay $60k in the case. If your disposable income is greater than $1k/month over 60 months ($50k+ to unsecured + $10k expenses = $60k divided by 60 months), then your case is driven by disposable income and not non-exempt equity. On the other hand, cases driven by non-exempt equity are particularly bad because you can't afford to keep all of your stuff due to lack of disposable income. You would need an outside contributor to make your case feasible due to lack of income.
You say you are $70 in the black. You need to back out the credit card minimum payments because they won't be paid. If it is really $70, that's a huge problem in many places because that's considered an abuse of the bankruptcy process by having almost all of the payment go to expenses. Instead you can file a 7 if eligible and surrender the non-exempt property to your creditors.
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