Can I file a CH13 with Negative Disposable Income?

[reb512]

I've decided I need to file. I have a car I want to keep. my only transportation to work. So I want to file a CH13 but according to the means test on legal consumer, I have negative disposable income, something like -247. Can I still file a CH13 or am I stuck with a CH7?

[arkienurse]

what is your reason to want to file a 13 versus a 7?
If you are negative on income, how do you expect to be able to pay a trustee payment every month?

[reb512]

I want to keep my car. Well according to the means test I have negative income, but it's giving me way more for rent and that kind of expenses than I really do pay. I bring home a little over $1500 a month

[keepmine]

If you just bring home $1500/month, why are you filing bk of any chapter?
Your issue is not debt but, not enough income. You need to stablize your finances and be able to support yourself post bk .
A Chapter 13 with that sort of income is doomed to failure.
What's the story with the car? How much do you owe, what sort of payments and, are you current on the car loan? WHat is the amount of the other debt you wish to discharge?

[reb512]

Here are my debts, and I wanted to file a chapter 13 so I could keep my car

Car: $10,600
CU Charged off checking $771
CU Visa. $4,600
Orchard: $250
Dell: $1,995.00
AT&T: 1,195
Verizon: 1,103
Juniper Visa: 1,148
Stafford Student Loans: $3,500
Old Sallie Mae charged off loan: $7,600
Total Visa: $250
Progressive: $115.00

I'm almost 2 months behind on my car, I'm 2 months behind on my CU Visa, and I'm always broke with gas expenses, and playing catch up on my car. I mean I don't see any reason why a CH 13 would not benefit me, because my total debt payment probalby will much less than I pay now for everything, or should I file a chapter 7?

[keepmine]

IMO, it's always a mistake to file a Capter 13 just to hang on to a depreciating asset like a car. ANy equity in the car?
I'd suggest this. STop paying all unsecured debt and see if you can put those student loans into deferment. Take those funds and get your car note current. Then, put on a full court press to get a better job or, a PT job or something.
The other debt is less than $12K. At some point, either settle it out or, file bk but right now, bk is just a bandaid. The real fix is more income. That should be the focus.

[Help!]

I don't think it's a good idea to hang on to a car your income (and budget) don't support. Even if you spend less than the IRS standards on other things, what if something goes wrong and you have unexpected expenses? There are some downsides to Ch. 13, and I just don't think it's worth doing just to keep a car. I would file 7 - just my opinion...

[arkienurse]

I agree with everyone else, I would not file a 13 just to keep an automobile. It is not worth it. Take it from someone who has been there, and done that. I would have given up my car in a heartbeat if I could have qualified for a 7. It is horrible to have all your disposable income gone EVERY paycheck. Hardly ever anything left to use to have fun with. I went to ONE movie the entire time we were in bk, and that was a matinee so it would be half price. And it is hard as H**L to save any money in a 13. Every time we got a bit saved up, something else broke. Then when something happens to your car, like it needs new tires, or the radiator blows unexpectedly, you don't have the money to fix it, and you have to find a ride for several weeks, while you eat beans and rice cause your grocery budget is the only thing you can cut to find the money to get it fixed.

Please sleep on it and reconsider

[reb512]

I'm very thankful to everyone for their advice. Well the reason I'd like to keep the car is because it's my only transportation to work, and another reason is that my mom is a co signer on this car, and I'm afraid if I file that they will come after her for the rest and she's on disability so I don't want to see her struggle with that. I"d really like a 7 because I wouldn't have to deal with payment plans, and I've heard that if I am completely caught up on my car that I can exclude it on my CH7, the car is in good condition, and I feel it would last long enough for me to pay it off, when I have more money freed up. What are your thoughts? should I just give it up in the 7? or should I try and have it excluded?

[arkienurse]

If you can get caught up on your payments, you can file a 7 and reaffirm the car loan. If you want to do that, stop using and paying all of the credit cards and get after the arrears on your car.

[Flowers]

I am going to be in the same boat as reb512: I am over the mean income for the state.
Can someone consider my situation:

Income $60k
credit card debt: $120k
monthly mortgage $4415
I have 20% equity in the home, and I am nervous that when i file chapter 13, and the lack of income to pay the trustee comes to light and I have to switch to chapter 7, that I will have to get rid of the home.

[MajorMike]

How did you get a 4415 mortgage payment on a 60K income???? That is your whole income!!!
How the heck do you pay 120K in credit cards ? The minimums alone have to kill ya....
I dont see how you'll be able to keep that expensive home...
What amound is 20%???

[Flowers]

my bankruptcy attorney advised me to stop paying the credit cards the moment I met with him.

Home: equity is $125,000
Income: in addition to the $60k, I receive an additional $50,000 each December 31 as part of my divorce settlement, this payment is yearly and the last one will be 2015.

I drive a Mercedes ML350 (I pay pmt $700/mo) that was leased (3yrs) by hubby for me just before he walked out on me, and took all of our assets, the credit card bills accumulated so high while the divorce was dragged out and he generally was in control of my money and also had access to liquidity that I did not.

[Flowers]

^^^ anyone?

[sick of debt]

[FONT="Comic Sans MS"][SIZE="2"] I think you need to file a C7 and get rid of the house. 4400 is a lot of money and 2015 is just around the corner. Is your ex tied into any of the credit cards? This is just my opinion. Are you sure you have 125 in equity? in this housing market?