Repayment plan...

[marzipan13]

I would rather do 13 than 7. I think I could pay $200-$250 a month if I got rid of my auto loan soon.
How do I figure out if that would be enough for the creditors?
Who determines how much I will need to pay each month? And how do they determine it?
Do they take a percentage of my total debt and then divide it up into monthly payments over 5 years?

[HHM]

Let's clear up whatever assumptions you might have, answer this question...

Why would you rather do a 13 than 7?

It's one thing if you "need" to file a chapter 13 in order to save an asset (like a home) and therefore cannot file chapter 7...but otherwise, if you qualify for a chapter 7, there is ABSOLUTELY NO reason to file a chapter 13 instead.

[marzipan13]

Re: Repayment plan

At the moment, I qualify for chapter 7 because my expenses are higher than my income and my debt is really high, and because of my auto loan that is taking a big chunk of my money each month.
I'm gonna let the bank repo the car in the near future, and buy a cheap $2000 car... so once that auto loan payment is gone, it's going to give me more available funds each month which may qualify me for chapter 13... but I'm not 100% sure because I don't know how they determine if I can repay or not. Is there a way that I can calculate it myself? Is it the median test?

I'm trying to figure out now if I should get the cheaper car before I file or after I've filed for BK.

[HHM]

Yes, you can take a sample means test to see where you might come out. Do some more reading on this site, there are plenty of sticky posts that will help answer your questions.

You can take a sample means test at this site...

http://www.legalconsumer.com/means-test-calculator/index.php

[CindyLou]

Your goal should really be to find a way to file chpt 7 and be done!! Chapter 13 is a long process and your finances and budget are in the hands of the trustee!! See a few attorneys and get some advice!

[SinkingFast]

If you're below the Median and you've got a ton of debt, chances are,......

You charge necessities like groceries, gasoline, and insurance premiums.

You probably don't see the doctor or dentist regularly, and haven't seen the eye doctor so you buy your glasses at the drug store or Wal-Mart.

The only time you buy clothes or shoes is when you absolutely, positively cannot get by with what you've got.

You'll be surprised, when you start living total cash, just how little money you really have left over at the end of a pay period.