Would I qualify for a 13?

[myhearts07]

We are about $20K in arrears, how will the trustee determine the repayment amount for that ? Originally when hubby took the means test, he passed because there was nothing left after exemptions. However, we are thinking of doing a 13 together since we have some joint debt with high payment amounts that the creditor would come after me for if we don't do this. My income is inconsistent every month. He currently brings home about $2500/mo net and I make about the same and then every other month I make an additional $800, so about $5K/ 6 months of the year and then $5800K/ every other 6 months. Do you think we could do a 13 basd on the that? Our cc payments are $2300, mtg is $2937/ car pymt $409/ utilities ($500) month, car insurance $471. This does not include food expense for the daycare or our house, which is $700+ a month. Do we have enough income to do a 13? Would we benefit? Thanks Hearts

[myhearts07]

Maybe I should put this in some type of order. I really need a response..

Stats: Home balance $338K, CC and other unsecured debt $30K,
monthly income: $5K
Mtg. payment: $2937
Car note: $409
Car Insurance: $491
Food expense: $700 (includes food for daycare)

Would i qualify for a 13

Thanks for your help

[optimistic1]

You need to use this first. Add up all of your expenses, with the exception of the credit card payments.

http://www.ca-bankruptcy-attorneys.com/calculators/expense_calculator.html

After you determine what your monthly expenses are.

Then you need to determine what your monthly income is, make sure you are accurate.

Once you have done that, you then have a number, which represents what your disposable income is.

Next, you need to determine if you are above the median or below the median income level based on your household size. Do that here. Punch in your zipcode, and determine your household size.

http://www.legalconsumer.com/

With you being 20k in arrears, this will need to be payed back into your plan. And if you do not pay all of your attorney fees upfront, those will need to payed into the plan as well.

Take your disposable income, and input into this form, this is the monthly amount you would be paying into the plan.

http://www.trustee13.com/fundwiz/

If you are above median income, you need to enter 60 months, if you are below, start at entering 36 months first.

Press next, and enter in your arrears, and your remaining attorney fees, a guess would be about $2000.

Press next, and see if says if your plan is adequately funded.

Note, you should hire an attorney to accurately determine if you can file or not.

If its says your plan is not adequately funded, you need to revisit your expenses and start adjusting things.

[myhearts07]

Thank you so much. I will do that.. Appreciate your help.

Question. My daughter lives here with her 2 year old daughter. Can they be claimed as exemptions? do I have to include her income from work? Hearts

[Flamingo]

Thank you so much. I will do that.. Appreciate your help.

Question. My daughter lives here with her 2 year old daughter. Can they be claimed as exemptions? do I have to include her income from work? Hearts

It appears they are living with you on a full time basis so therefore they are part of your household and household income. Your daughter's income would be included in your household income.

[myhearts07]

Okay. I did the tests. Avg. Mnthly living expenses $5873.17, daughters income would put us over the median, and with arrears on mtg., we are not adequately funded. I did not do the exemptions yet and maybe that will help, I am confused about this so I don't know. Our income monthly with what we charge our daughter is $5200. We are already upside down. Will the exemptions make a difference?

[optimistic1]

There really is not any "exemptions" when you are trying to develop a repayment plan, its easy, income minus expenses = disposable income.

How much is the funding wizard showing you are actually paying into your plan?

How much disposable income did you determine that you have?

Also, when did you buy the car? Was it more than 2.5 years ago?

Does your mortgage have a second on it?

[myhearts07]

Fund wizard said zero because I only put in the arrears and not all of the cc debt. Should I have? We are upside down on income.. with the expenses vs. income we are short almost $600. My van was purchased in 2005 and I owe $14K on it, we have an 05 Impala that is worth about $2K, and no we don't have a second mortgage.

[optimistic1]

No, dont bother putting in the credit card debt.

So if you purchased the van in 2005, you would qualify for a cram down, which would enable you to incorporate the van payment into your plan, at a lesser amount per month.

But, if you are short almost $600, then I dont see how you can qualify to do a Ch.13, you need to have money left over. Your'e not adding in the credit card minimums into your budget are you?

Worst case scenario, you need to file a Ch.7 and either give up the house, or try to refi it somehow, though it may be difficult to do so, with you being 20k in arrears.

[myhearts07]

Thanks, Opt1... I am wondering if any of the new legislation would benefit us. The cramdown on the van would be great but does that only apply to chapter 13? No, I didn't include the cc payment or any other unsecured debt just the van and mortgage and expenses. here are the heavy hitter expenses and some I was moderate on, especially food because I have a home daycare and I provide the meals.
Mtg. 2937
Food 500
Rec & Entert. 100
Presents 400
Charitable Cont 500
Auto Insurance 471 - but daughters do help pay this (I can subtract out $290)
Gasoline 400.00 (Could be less, but van is a 15 passenger, $60 to fill up right now + hubby's car about $30/wk)
Tax & Registrations 200 (yr)
Van payment 409
Child support 202.00 (bi-weekly)
Haircuts 50 monthly

Is this abuse? These are true expenses... I guess I could put in the dmi amount as $290? Right because the girls help pay the auto insurance..
Last year I made $12K, DH made $53K and daughter made about $19954. So we went over the median income for a family of 5 including her income. This year she is set to make $29850.00, dh about 56k and me, maybe $30K? I am sure we are over again she is going to be moving out, how does that affect us?

Thanks

Hearts

[myhearts07]

Okay, so we went to see the attorney. we can't do a 13 because we are broke after expenses and would not have any DMI to put into a 13, so he is doing a 7. Thanks for everyone's input and help..

Hearts

[eddiep]

Why did you want to do a chapter 13? were you hoping to save your home?

[myhearts07]

Yes, I was. I am kinda sad about this because my daycare business is out of my home. I have to start over somewhere else and I am finally getting new clients. So I have a friend who is a realtor looking out for rental properties for us in the surrounding areas that would still make it convenient for my clients to get to me and drop off the kids. Otherwise, I will have no income if they all go somewhere else and we experienced that already 3 years ago when I let my clients know that we were moving and they took their kids out and we had a hard time and I just really didn't want to go down that road again. It was terrible for us and our kids. We were all stressed and falling apart and I just can't do that again. My house is perfect for the daycare and I have a beautiful walkout basement that goes into the backyard and play area and I know that I am not going to be able to find that in the area. Booo...

Hearts

[BigJohn]

Tell your lawyer you want to save the house. He will work with you. Crap down the van and how long have you owned the Impala?

Are still making payments on the vehicles?


You should be able to get insurance a lot cheaper then you are paying. Have you checked that out?




Mtg. 2937
Food 500 (trying reducing to $400.00)
Rec & Entert. 100 (try reducing to $20.00)
Presents 400 (try reducing to $15.00)
Charitable Cont 500 (try eliminating)
Auto Insurance 471 - but daughters do help pay this (I can subtract out $290) (try getting a better rate)
Gasoline 400.00 (Could be less, but van is a 15 passenger, $60 to fill up right now + hubby's car about $30/wk)
Tax & Registrations 200 (yr)
Van payment 409 (cram down - maybe $70.00)
Child support 202.00 (bi-weekly)
Haircuts 50 monthly (cut your own hair or do what I do, don't have my hair cut)

It is possible you might be able to cut out another $1400.00.

[myhearts07]

thanks Bigjohn. Yes, a lot of your suggestions could be doable. our car is paid for, no note on that. van was purchased in 2005 along with car. van in my name and if we do a 7 won't benefit because I am not filing with hubby. gifts i can let go, but i am a tither at my church and i believe in that so i won't give it up and will give that amount if i have it still. I will take your suggestions on the other stuff however if this will help us get into a 13. What did you mean about cutting another $1400? where? we also have $20K in arrears.