$40,000 debt $282 a month? Didn't expect so low

[Dealer36]

Hey you guys. I filed bankruptcy last week and have to say I feel really good that I finally got my paperwork done and over with for the most part. Now I still have to face the judge and 341 meeting.

I will admit I was pretty floored that he told me my payment would only be $282 a month. A little background: about $52,000 a year income but IRS is very generous on their expense allocations. The paralegal talked to a lawyer and she ok'd me claiming my gf since she hasn't worked in a while and I claim her on my taxes (she meets the qualifying relative standard for living with me all year)...etc...anyway, I was happy that my payment was so low (didn't expect it so low, really) but I was really shocked. My unsecured creditors are getting zero. I couldn't believe it.

I do think they will object since I took out A LOT of money about 100-150 days before filing and realized that I couldn't keep spinning my wheels. I have a lot of gambling losses this year and I'm not proud of that fact but It's true. I do feel badly that he has my unsecureds getting nothing. What do you guys think the chances are of them objecting? I fully expect they will and in my mind i'm already preparing myself for about another $350 a month since I think they will accept less but NOT zero.

However it works out I will be o.k. with it. I was trying to pay my bills off in 2 years and half killing myself to do it. I was paying about $1,700 a month so even if it is $650ish I will handle it. That's still over $1,000 a less than what I was paying and I didn't have money left over at the end of the month for food or ANYTHING, basically. Hence, that made me chase my gambling losses even more. A bad cycle that I realized I couldn't do anymore.

I am not proud of what I did but I can honestly say with everything that I have that I didn't plan to file bankruptcy until I realized that I was only living to pay off my bills and It was brutal. If anyone has any advice I would greatly appreciate it. Strange as it sounds I feel like I do owe my creditors something because I have never been one to run from my bills and ruined a great credit score over all of this.

[MajorMike]

Just don't go back to gambling with the money you have left over now. The trustee will tell you NO GAMBLING under protection and your case will get dismissed if you do.
Also, we're only paying non-secured 5 percent..and make over 60K/year.

[lrprn]

Also, we're only paying non-secured 5 percent..and make over 60K/year.

For our newer members who are researching Ch 13....there is NO DIRECT RELATIONSHIP between your calculated monthly payment, how much you owe, how much you make, and the % payback to your creditors.

Your calculated disposable income after completion of the Means Test and Schedules I and J is what determines how much your Ch 13 monthly payment will be.

[isitreal]

Your calculated disposable income after completion of the Means Test and Schedules I and J is what determines how much your Ch 13 monthly payment will be.

Can I adjust that statement to say "how much your maximum Ch 13 monthly payment will be"?

[lrprn]

Can I adjust that statement to say "how much your maximum Ch 13 monthly payment will be"?

Whatever your disposable income shows on the Means Test and Schedules I and J is what determines your montlhy payment. It's a cold, hard figure.

However, a well-experienced bankruptcy lawyer who files a lot of Ch 13 cases can make a huge difference minimizing your disposable income thus minimizing your monthly payment.

Think about what an experienced tax preparer who knows the IRS rules inside and out can do with your tax return compared to doing your taxes yourself. I bet the experienced preparer can get you a much larger (and legal!) refund than you could on your own.

Same thing in Ch 13. Finding and retaining an excellent Ch 13 lawyer is 80% of the Ch 13 battle. Your choice of attorneys alone can set you up from the start with a good chance or no chance to make it to the end of your plan.

[nd2fxmess]

Whatever your disposable income shows on the Means Test and Schedules I and J is what determines your montlhy payment. It's a cold, hard figure.

However, a well-experienced bankruptcy lawyer who files a lot of Ch 13 cases can make a huge difference minimizing your disposable income thus minimizing your monthly payment.

Think about what an experienced tax preparer who knows the IRS rules inside and out can do with your tax return compared to doing your taxes yourself. I bet the experienced preparer can get you a much larger (and legal!) refund than you could on your own.

Same thing in Ch 13. Finding and retaining an excellent Ch 13 lawyer is 80% of the Ch 13 battle. Your choice of attorneys alone can set you up from the start with a good chance or no chance to make it to the end of your plan.

I have a question and maybe it means we would need to seek another attorney. I spoke with two different ones that said due to how low our debt is (would file only to save our house currently trying to work out a plan with the bank total debt approx. 24000) and how high our income is. That we would have to file a BK 13 plan that was for 60 months there for our payment would be about half of our disposable income (what we figured on our to est it).
So did two different attorneys not tell us the truth? We are in Florida by the way.

[lrprn]

I have a question and maybe it means we would need to seek another attorney. I spoke with two different ones that said due to how low our debt is (would file only to save our house currently trying to work out a plan with the bank total debt approx. 24000) and how high our income is. That we would have to file a BK 13 plan that was for 60 months there for our payment would be about half of our disposable income (what we figured on our to est it).
So did two different attorneys not tell us the truth? We are in Florida by the way.

These two attorneys are making (hopefully!) educated guesses about how much disposable income you will show on the Means Test and Schedules.

With little secured debt and high income, unless you have unusual circumstances that help offset your income, that leaves more disposable income showing and typically makes the Ch 13 payment higher.

I would meet with at least 2 more experienced Ch 13 attorneys who file at least 2-3 Ch 13 cases every month and have been in your local court for several years to see what they say about your situation.

[253BK]

what was the website you can go to to try and figure out your monthly payment???

[lrprn]

what was the website you can go to to try and figure out your monthly payment???

Here's an online Means Test calculator - http://www.legalconsumer.com/means-t...ator/index.php

And here's a link to the Schedules that went into effect Dec 1, 2007 - http://www.uscourts.gov/bankform/ - scroll down and look for B6A (Schedule A) through B6J (Schedule J). Schedule I minus Schedule J shows your disposable income (if any).

Remember that these forms are kind of like filling out your income tax forms. There's an art to filling them in with the maximum allowed in your district to minimize your monthly Ch 13 payment. It's not always the figure you think that it should be. That's where having a good lawyer who knows the practices of your local court and trustees makes all the difference.

[CATCHMEIFYOUCAN]

No Gambling ?

Just don't go back to gambling with the money you have left over now. The trustee will tell you NO GAMBLING under protection and your case will get dismissed if you do.
Also, we're only paying non-secured 5 percent..and make over 60K/year.

I don't think I ever heard a Trustee tell somebody they couldn't gamble, but I could be wrong ???

Just my 2 cents. Catchmeifyoucan

[MajorMike]

Nope, she said You are NOT allowed to Gamble while under protection of the stay. She looked right at me and said..."you understand this, correct?" I said, yes. She said, that could dismiss your case very quickly and I said, yes maam.

[aa06a47]

Just don't go back to gambling with the money you have left over now. The trustee will tell you NO GAMBLING under protection and your case will get dismissed if you do.
Also, we're only paying non-secured 5 percent..and make over 60K/year.

I don't think I ever heard a Trustee tell somebody they couldn't gamble, but I could be wrong ???

Just my 2 cents. Catchmeifyoucan

My trustee didn't say no gambling either, she just said.."there are specific rules concerning gambling, however never explained what the rules were. Best advice, don't gamble, even with your low payment!!!

I thought my payment was low too. Unfortunatly, when you on an all cash basis, no credit cards...etc., it can get hairey from time to time. If you have extra, don't gamble it, save it!!!

[keepmine]

Can I adjust that statement to say "how much your maximum Ch 13 monthly payment will be"?

There is one other component of a Chapter 13 plan. Your unseured creditors can't get less in a 13 than, they'd have received in a 7.

[CATCHMEIFYOUCAN]

I'm wondering if the "No Gambling," remark is enforced during a BK process moreso in states that have casinos? The state of Virginia doesn't really have any laws about gambling in Va., well at least thats what my lawyer said. I called him up a week before my 341 meeting and told him I hit a jackpot for $1500 and I told him I spent it on necessary items, groceries etc, he said, not a problem and no need to bring it up at the 341 meeting. Ahhh well, every case is different.

Catchmeifyoucan

[aa06a47]

I'm wondering if the "No Gambling," remark is enforced during a BK process moreso in states that have casinos? The state of Virginia doesn't really have any laws about gambling in Va., well at least thats what my lawyer said. I called him up a week before my 341 meeting and told him I hit a jackpot for $1500 and I told him I spent it on necessary items, groceries etc, he said, not a problem and no need to bring it up at the 341 meeting. Ahhh well, every case is different.

Catchmeifyoucan

There are a crap load of them in Missouri....at least in the area I live in.