Chapter 13

[phoenix44212]

In Chapter 13 there is one section towards the end on the B22C form that allows retirement loan repayments and loan contribution deductions. Has anyone here had experience taking these deductions and then having negative disposable income. Must you convert to Chapter 7? What happens if you want to keep your house or car or if you don't? Why pay $0 to unsecureds over 36 months (below means) or 60 months (above means)? Would it be better to continue Chapter 13 for 36 months paying only car and/or house in the payment plan? Would the added expense of attorney fees for 13 be worth it? ie the better view by post bk creditors? Any questions I'm missing that you can also answer will be appreciated.

[aa06a47]

In Chapter 13 there is one section towards the end on the B22C form that allows retirement loan repayments and loan contribution deductions. Has anyone here had experience taking these deductions and then having negative disposable income. Must you convert to Chapter 7? What happens if you want to keep your house or car or if you don't? Why pay $0 to unsecureds over 36 months (below means) or 60 months (above means)? Would it be better to continue Chapter 13 for 36 months paying only car and/or house in the payment plan? Would the added expense of attorney fees for 13 be worth it? ie the better view by post bk creditors? Any questions I'm missing that you can also answer will be appreciated.

I would seek the advice of a bankruptcy attorney. Chapter 13's are complicated.

Retirment loans are allowed expenses. They will ask you when they end though, so you could get a bump in your monthly payment when they end. Contributions to 401k plans may or may not be allowed. My trustee allowed up to 3%. I understand others allow 0 to 5%. Just depends on the trustee.

With the new laws, use an attorney.

[CATCHMEIFYOUCAN]

Chapter 13

In Chapter 13 there is one section towards the end on the B22C form that allows retirement loan repayments and loan contribution deductions. Has anyone here had experience taking these deductions and then having negative disposable income.

I had about $600-700 going towards my 401k (half of which I was going towards a couple loans I had out $200-300) the rest was just socking it way in for retirement ($300-400). Mind you I had 2 full time jobs so 2 401k's. I'm pretty sure had if I didn't have those deductions the Means Test would have probably been a positive than a negative $60 odd dollars. But no questions were asked why I had so much money going into the 401k - so I kept my mouth shut! Why forward any extra info if the info is already laid out on paper! It they missed it - tooo bad.

Must you convert to Chapter 7?

In order to escape 5 years of "hell," paying back $800 a month and keeping 2 full time jobs (working 80 hours a week instead of 40) ohhhh yeah, converting from 13 to a 7 made all the sense! Although, I'm back to working PRACTICALLY TWO FULL TIME JOBS but "hellll," I'm getting paid OVERTIME doing it, and now that I'm discharged .. it feels great!

What happens if you want to keep your house or car or if you don't?

I kept my car. Heck, I just bought it a month before I filed. I'm doing what is called a "ride through," none of that reaffirmation crap.

Why pay $0 to unsecureds over 36 months (below means) or 60 months (above means)?

I never understood $0 to unsecured over 36 months. What is THAT? Might as well do Ch7. The way I see the creditors ain't gettin' nothin' if it is $0 to unsecured???

Would it be better to continue Chapter 13 for 36 months paying only car and/or house in the payment plan?


When I filed for Ch13, I kept my car out of the plan. Since I converted I am still paying on my car.

Would the added expense of attorney fees for 13 be worth it?

Forget the Means Test, If your schedules I and J show you have disposable income than you have no choice but to be in a Ch13. The reason why I say forget the Means Test is because it showed I had negative $60 (so no presumption of abuse), yet my schedules showed I could pay back at least $800 NOOOOOOO WAYYYYYY - and that was due to working 2 full time jobs. So at the advice of my lawyer I eventually "gave in," and quit one job so I wouldn't have to pay back anything in the end!

ie the better view by post bk creditors? Any questions I'm missing that you can also answer will be appreciated.

Best of Luck, CMIYC