Payments Going up?

[brokeNconfused]

Well i went and filled the forms out, signed and filed paperwork. On the j and means test i qualified for 7, but did a 13 to keep house. The forms showed me still in the negative so we had to cut some spending to bring my disposable income to the $250 min allowed payments. I have 3 kids, stay at home wife and make less than 55k a year. One car and hoping to keep this out of the plan. What are the odds my payment will go up? My attorney felt pretty sure it would not, but could not make any promises or say why it may.

anyone have this stuff happen to them? i know is sounds low, but $250 will still be hard to pay back.

[BnkrptcyLwyr]

One of the biggest factors affecting plan payment is getting a hold of how much you owe on secured claim arrearages. The biggest one is home mortgage arrearages. If you get that wrong, and the bank's claim comes in with a substantially higher arrearage (and it's actually calculated properly), then your payment will have to go up.

[helpmestartover]

The forms showed me still in the negative so we had to cut some spending to bring my disposable income to the $250 min allowed payments.

I have a question about the minimum payment for a chapter 13. Is the 250 min. payment in all states? I am below the median, have to file a 13 because i previously (6 yrs ago) filed a 7. I only owe to unsecure cc's (personal loans and credit cards). I have a car payment that will need to be outside the plan. I've been holding off on filing because of a car purchase, however from what I've been reading it was a good move to get a car that will last through a 5 year plan. I was a fraid also of the negative disposible income, but figured I could find a way to fund a 13.

[BnkrptcyLwyr]

I have a question about the minimum payment for a chapter 13. Is the 250 min. payment in all states? I am below the median, have to file a 13 because i previously (6 yrs ago) filed a 7. I only owe to unsecure cc's (personal loans and credit cards). I have a car payment that will need to be outside the plan. I've been holding off on filing because of a car purchase, however from what I've been reading it was a good move to get a car that will last through a 5 year plan. I was a fraid also of the negative disposible income, but figured I could find a way to fund a 13.

There is no minimum payment. I've had clients paying $20/week, and there are client's paying 1200/bi-weekly. It all depends on whether, at the end of the day, you have the income to actually afford the payments. Unless you're paying your unsecured creditors 100% on their claims, you must contribute all of your projected disposable income, whatever that turns out to be.

If you're going to purchase a car, do it before filing if you can. That way (1) you should be able to make payments directly to the car company, and (2) hopefully you'll get a lower interest before filing bankruptcy than you would get if you tried to purchase the car after filing.

[helpmestartover]

There is no minimum payment. I've had clients paying $20/week, and there are client's paying 1200/bi-weekly.
If you're going to purchase a car, do it before filing if you can. That way (1) you should be able to make payments directly to the car company, and (2) hopefully you'll get a lower interest before filing bankruptcy than you would get if you tried to purchase the car after filing.

Glad to hear there is not a minimum number the lawyer will set my payment at. I have purchased a car, but I thought I needed a few months payments in to the car before filing, I understand it needs to be out of the plan. I was worried that if I couldn't afford my CC's how could I afford a car and the lawyer or the trustee would make me return it. With the car payment and the CC's I can barely hang on. I am so worried about the creditor calls I keep making payments to the cc's. I just need to make the consult call, but wanted to allow time to pass between the car purchase and the filing if that is the right thing to do.

[BnkrptcyLwyr]

Glad to hear there is not a minimum number the lawyer will set my payment at. I have purchased a car, but I thought I needed a few months payments in to the car before filing, I understand it needs to be out of the plan. I was worried that if I couldn't afford my CC's how could I afford a car and the lawyer or the trustee would make me return it. With the car payment and the CC's I can barely hang on. I am so worried about the creditor calls I keep making payments to the cc's. I just need to make the consult call, but wanted to allow time to pass between the car purchase and the filing if that is the right thing to do.

Well, let me also warn you, if you're paying your attorney fees through the plan, then there are two "minimum" payments: (1) the payment it will take to pay off your attorney fees, and (2) trustee fees. I guess what I'm saying is that it is very possible to have a very low payment in Chapter 13.

[brokeNconfused]

not sure what you mean by 'secured claim arrearages" is that secured loans i am behind in? i gave back one vehicle, bought another cheaper. Not behind in house or anything besides unsecured stuff.

[BnkrptcyLwyr]

not sure what you mean by 'secured claim arrearages" is that secured loans i am behind in? i gave back one vehicle, bought another cheaper. Not behind in house or anything besides unsecured stuff.

Secured claim arrearages are arrearages on secured claims. Like, you're behind on your house payments, car payments.

Whatever is "secured" must have the arrearage paid off in full. Some people guess that the arrearage on their house is $4,000. Then, the bank files a claim, and the client got it wrong, they're $8,000 behind! Whoops! We must make up the $4,000 somehow during the 36-60 month period. I have a client who estimated the arrearage at 16,000 ... turns out their 25,000 behind on their house payment. That puts a big hurt on their budget.

[helpmestartover]

Well, let me also warn you, if you're paying your attorney fees through the plan.

thank you. I've sent several emails to local BK lawyers about paying for the BK...how can I pay when I am bankrupt? Noone will answer my questions without a consult. I just felt it was wrong of me to purchase a car (even though I had no option because mine would not take me 5 years). I was worried about meeting the disposible income guideline, and what would I do if I had to then make a minimum payment amount. When I read the 250 figure of the OP, I felt I could do that if I had too. I hope I would be allowed to pay the attorney through the plan to move things along sooner so I don't need to wait to file to save to pay the lawyer. But I am worried about just getting the car that I shouldn't file so soon. I don't want to be considered fraudalent or abusive to the system, when I needed a car. Thanks again for your responses about the payments.

[brokeNconfused]

what if the vehicle is returned and they sell it off. The remainder left is that an arrearage figure? or is it just absorbed in bankrupsy since i no longer have the vehicle?

as far as the payments go. I am paying fees through 13, but was told of my $250 THEIR fees will be distributed first then the rest to creditors. I was told i may lose my tax refund during my 36months becasue my payback is going to be soooo low. I just dont want the trustee to come in and start saying i dont need to pay "X" amount of dollars to "X" bills or expenses and instead cut it by $50 or so and take that $50 and raise my payments.. like i said before. the $250 supporting 3 kids in school makes it tough.