Disposable Income

[klux]

I have another question. What happens if you don't have enough disposable income to pay into the plan that would allow for the complete repayment of a secured loan that was purchased less than the 910 days ago? Do creditors sometimes work something out with you? I mean, they would at least get something back if they allowed the cram down. I'm really worried about all of this. I'm in Wisconsin if that matters.

[CATCHMEIFYOUCAN]

If you already filed, they would have worked all that out at the time. If you just acquired new debt after filing I hope you got the Trustees approval? Can we have more details?

Best to you, Catchmeifyoucan

[klux]

I filed a chapter 13 in April 2002, I converted it to a Chapter 7 in March 2005, was discharged in June 2005. I am thinking of filing a chapter 13, meet with an attorney tomorrow. But my problem is I have 3 secured loans with my credit union and 2 unsecured loans. The value on 2 of the secured loans is adequate to that of what is owed, but then I have one that is upside down. $28000 owed on a vehicle with FMV of about $15000. I thought I'd be able to do a cram down, but now people say I'd have to have it for 910 days. I oriiginally got it on Nov. 25, 2005.......refinanced it to this credit union in NOvember 2006 (better interest rate). 910 days wouldn't be until May 2008. I really can't lose my vehicle, but from the numbers I come up with it looks like i would only have enough disposable income to go into the plan to pay for the FMV of this vehicle and the full balance on the other 2 loans. I don't know what to do now.

[kiddles]

You have 3 vehicles. You can "afford" to lose one. You can't afford to keep them all.

[klux]

Why does everyone seem to attack people on these boards! You don't know my circumstances. All 3 secured loans are not vehicles.....one is a motorcycle. Not everyone plans on there husband getting hospitalized for a month and out of work without any pay for several months when they normally bring in 3/4 of the income! Also, when your childcare was free, and then your caregiver passes away and now you are stuck with $1200 childcare expense......I can't "afford" to lose one vehicle since they will just put it on the loan of another one since it is a credit union, that's what everyone says anyways because of cross collateral.

[lrprn]

So sorry to hear about all your troubles, klux. You've experienced a lot of bad things close together - no wonder you are struggling financially.

I can't "afford" to lose one vehicle since they will just put it on the loan of another one since it is a credit union, that's what everyone says anyways because of cross collateral.

If you file bankruptcy, the lender can't cross-collateralize between the cars and motorcycle. However, most Ch 13 trustees and judges will only allow one vehicle for each adult driver in the household. You may have to surrender one - talk about this with your lawyer.

Another important thing to discuss with your lawyer is since your Ch 7 was discharged in 2005, the current bk law states you can't file another Ch 13 and receive a discharge until four years after your Ch 7 discharge. Unfortunately you may discover that you can file but not have all your new unsecured debt wiped out just yet. Your lawyer can advise you what's right in your situation. Keep us posted what you find out, ok?

[john_smith]

My question is: Do you include your second mortgage payment in the means test calculation, and on the disposable income calculation (Schedule J), if you are trying to remove it?
I have my first for 192K, my second for 47K, and 25K credit cards. My income is slightly above the average. I am trying to file chapter 13 and remove my second, since the value of my house is around 180K. I pay $515/month for my second mortgage, and around $500/month for credit cards. But all at the expense of feeding 5 people with $600/month.
According to the guidelines I am allowed $1632/month for food, clothes, etc. I would like to file chapter 13 only if my disposable income is no more than $300/month.
I am not sure that I understand completely the the means test, and the disposable income calculation and process.
Which one must use the last 6 months, and which one must use current numbers.
What should I do?

Please advice me.

[rrockinggramma]

perhaps you could use the 722 redemption here to help you out. I know it is a credit union and the interest of 722 is high, but it would be just like a cram down I believe. I am not positive it would work, but worth talking to your attorney about. GL

[rrockinggramma]

To John: Have you spoken with an attorney yet? I am not familiar with the means test but I would think that all of your expenses would need to be included.