Two questions regarding Ch 13

[2muchinDebt]

1. If you are in a Ch 13 and you get a pay raise or I find a PT or Ft job do we have to surrender that extra income to the trustee?

2. How can we file Ch 13 and afford any payment when we are $900 in the hole each month?

The lawyer we consulted with says we should wait another 1-2 months to file because he feels the new law be signed to help homeowners in BK where the Fed. judge can renegotiate the first mortgage (get a fixed 30 yr loan at the current market value of the house) and we'd strip the HELOC. Whereas, if we did a CH7 we'd be stuck with both the 1st and the HELOC.

I know WHY he wants to do that, but I don't know where that $$$ would come from ....I guess he thinks we can pull it out of our ***.

[justbroke]

1. If you are in a Ch 13 and you get a pay raise or I find a PT or Ft job do we have to surrender that extra income to the trustee?

It depends. It totally depends on what your Disposable Monthly income as it was calculated on your petition. I would argue that if I had a negative DMI on my form B22C, and received a raise, then I get to keep everything up to the point my DMI goes positive.

2. How can we file Ch 13 and afford any payment when we are $900 in the hole each month?

Because all your credit card (unsecured payments) will go away! If it's your home that's doing this to you, maybe even your second mortgage can be wiped away!

This creates the cushion that you need.

The lawyer we consulted with says we should wait another 1-2 months to file because he feels the new law be signed to help homeowners in BK where the Fed. judge can renegotiate the first mortgage (get a fixed 30 yr loan at the current market value of the house) and we'd strip the HELOC. Whereas, if we did a CH7 we'd be stuck with both the 1st and the HELOC.

Who knows. I don't trust Congress.