Payments vs. Income vs. what's left over

[CityGirl]

Anyone who is in a payment plan, can you please list what your payment is, what your income is and what % it is that you're actually paying of your original debt? years they assigned to you? Thanks

[HHM]

Lets clarify about a chapter 13, because your question seems to assume certain things about how a chapter 13 is determined that simply are not the case...

Each chapter 13 is different because it is based off the individual circumstances of the debtor.

Under the new law ALL chapter 13 payment plans are 60 months, unless (1) the debtor makes less than their states median income, or (2), the debtor has enough disposable income such that they would pay off 100% of their unsecured debt in less than 60 months. Unless either one of those conditions are satisfied, all chapter 13'r are 60 months.

Your chapter 13 payment is determined by two factors

1. The amount of your disposable income. Disposable income is the difference between your Monthly Gross Income minus necessary with holdings (i.e. Taxes, FICA etc), and "reasonable" living and household expenses. The BK law requires that you devote "all" your disposable income to the chapter 13 payment plan.

2. The total of your payments over the life of the chapter 13 plan, must at least equal the value of your "non-exempt" assets. There is no "set" percentage you have to pay back to unsecured, you could conceivably have a plan that pays 0% to your unsecured creditors (but that would mean you have no, non-exempt assets, and a majority of your debt is priority debt, i.e. Federal Back Taxes, Child and Spousal Support etc).

In that respect, figuring what your payment would be is fairly simple, just subtract your living expenses from your income, and that will give you a ball park figure of your monthly payment.

The big challenge with chapter 13's is that...what you may consider a reasonable living expense and what the Trustee and BK court consider a reasonable expens may be at odds.

[SinkingFast]

The big challenge with chapter 13's is that...what you may consider a reasonable living expense and what the Trustee and BK court consider a reasonable expens may be at odds.

For example,..........

Many Ch 13 Trustees do not allow for pet expenses in the monthly budget. If your attny submits pet expenses in your monthly budget, the Trustee might take those $$$'s to add to your Proposed Plan Payment.

Or,....... You could spend more on food than is typical for your Court. The Trustee could trim your food budget to add more $$$'s to your Proposed Plan Payment.

Maybe you have the deluxe cable package. The Trustee could trim $$$'s from that area of your budget to add to your Proposed Plan Payment.

Just some examples for you.

[lrprn]

HHM and SF are both right. Also see my reply to a similar question you left on another thread at http://www.bkforum.com/showthread.php?p=99761#poststop

[CityGirl]

Thank you guys and I understand that mine will be different from others. I'm just CURIOUS as to what some of the Chapter 13 people in here are paying.....

[lrprn]

Thank you guys and I understand that mine will be different from others. I'm just CURIOUS as to what some of the Chapter 13 people in here are paying.....

You'll find our Ch 13 forum members pay from a minimum of $100-160/month up to several thousand dollars a month and everything inbetween.

I wish we could help you feel more comfortable about what you might have to pay every month in Ch 13. Unfortunately until your lawyer completes the Means Test with your specific figures along with knowing what's acceptable in your district and how your judge has interpreted the gray areas of the 2005 bk law, there's really no way to know with any certainty what your disposable income per month is going to be. And that's what is going to determine your monthly payment.

[Granny]

You'll find our Ch 13 forum members pay from a minimum of $100-160/month up to several thousand dollars a month and everything in between.

Family size can make a difference. Some people have to pay day care and that would reduce one's payment. Others have large medical expenses that reduce the amount available for the monthly payment.

There are a several reasons for the large variances in payment amounts and it has nothing to do with income or expenses. Some pay their mortgage inside their plan, some pay their mortgage outside their plan.

Some are paying for other secured assets they are keeping and others may not be keeping a similar asset.

Some 13's are paying something towards the unsecured debt while others are paying nothing.

Some are paying taxes, others are not. Some are paying attorney fees within the plan and others do not. And the amountof the attorney fees vary too.

The trustee percentage varies, even within the same district.

There are just too many variables to be able to compare payments. It's just never gonna be apples to apples with a Ch 13.

[BKOnce]

I comleted a 3-year, old 13 plan, 60%, $2500/mo on $180K CC. Damn Lucky me!.