No disposable income for repayment

[mmenz22779]

Even going conservative i wont have any disposable income, i am negative -500 a month.

how does this effect a chapter 13?

would they dismiss a 13 because i have no disposble income? I do have a car payment at 6.99% for 6 years of a payment of 361 I will keep and my home that is it.

[AngelinaCatHub]

Sounds like you should be in C7. New start. 'Hub

[woeisme]

If you have no money to make payments (negative disposable income) you can't file CH 13. CH 13 requires payments, you can't make payments, pretty cut and dried there unless there's something you're not telling us.

[mmenz22779]

daycare and my 401k loans eat up 3000, my daycare for 2 kids is 1600 i have 3 401k loans that total 1350 =3000

the only reason for a 13 is to strip my 2nd.

[justbroke]

I (now) have a negative Disposable Monthly Income (DMI). It's several hundred dollars as well. The key is, can you afford to fund the plan, even with the negative DMI. Having a negative DMI doesn't automagically disqualify your for a Chapter 13, but it is a good indicator that you may not be able to fund one.

The whole thing will come down to whether or not you are required to pay unsecured creditors anything. If you are... then this could become difficult as you would have to "dig" into your allowed deductions in order to fund it. This could make it very very difficult for you to live and wouldn't be the best thing in the world to do.

[mmenz22779]

on the means test some of the expenses such as 1000 for cars and 1370 for household expenses are quite high, in the real world I do have spare money, but on the 22c it looks so negitive.

would this mean that I could not strip the lien on the 2nd because I dont qualify for a 13 due to disposable income?

or would I be able to strip the lien still and be forced into a chapter 7 as well that would be the best of both worlds.

I just need my house to drop 10% by may 09 and i can wipe out my $250000 HELOC on my main home.

[oldrocker]

My means test was -807 (or there abouts) but I was able to show the $447 I needed to fund my plan on scedules I & J. Because of the negative number on the means test unsecureds are getting nothing.

[mmenz22779]

if i do a 13 i think i will be in the same boat oldrocker. I belive my car loan will get included and the taxes i will owe to the IRS for 2008, along with the trustee payment and lawyer.

other than that no one gets nothing, so if I can wipe out my 250k then i will more than happy pay for my car, trustee, taxes and layer for three years.

Your plan is three years correct?

[oldrocker]

Your plan is three years correct?

I'm in a 5 yr plan. Just paying taxes, lawyer's fee and trustee's cut.

[mmenz22779]

Also our income will increase as my wife will be back at work.

[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.