Anyone have negative disposable income?

[1aliasfan]

I just turned all paperwork over to my attorney so I have not met with him on numbers, but I have done the means test and the b22c form and I show we have -1100 each month. Now, in our regular budget, we can pay our monthly living expenses, 2 car payments, house and motorcycle payment, but nothing else.

My attorney did voice the possibility of letting one car go back, freeing up $492 a month. My husband is a truck driver and hauls grain, so that is up and down income the last 6 months. Mine is always the same.

Anyone have any experience with this?

Our stats:

Combined Mo. Income Gross: 9106
Cars/House 2652
Child support per mo 500
Back child support per mo 100
Taxes and other misc out of paycheck 1291
Monthly living exp 3290
Child support income 390
School loan 30,943
Unsecured debt total (CC, collections, medical, prom note) 97,426

[lrprn]

Chances are showing no disposable income and being far under the median on the Means Test will make it very difficult (if not impossible) to file Ch 13 unless you surrender secured assets to create at least $165/month of positive disposable income to fund a Ch 13 plan. Sorry the news isn't what you hoped

[BubbaGump]

This actually kind of answers my previous question about having to impute income upon myself under the guise of getting a partial rent (or utilities) payment from my girlfriend. This forum is quite helpful - lots of experience from folks here, and from the sound of it some fairly positive experience in having gone through this arduous process (even in the Chapter 13 cases).

[sadandconfus]

lrprn: i think that if i cut back on some expenses i should be have $165. Is that amount for everyone I'm in Maryland. Originally try to file under a bk7 and now I'm going to file for chp13 to save my house.

[optimistic1]

I have negative DMI from using the B22C form, but I am under median, so I can use my own expenses. I first determine what claims there will be and then determine what I need in terms of a monthly amount to pay those claims in accordance with the commitment period. Then I work backwards from that point to make a budget for all of my living expenses. The living expenses I have come up with fall below the IRS standards.

[sadandconfus]

i read somewhere that if you are under the median you only pay for 36 months instead of the 60 months is that true?

[IBroke]

i read somewhere that if you are under the median you only pay for 36 months instead of the 60 months is that true?

That's correct!

As silly as it might sound, but if you are ABOVE the median and STILL have a negative DMI, there has been a decision by a specific district (I think 9th District) that you might not have a minimum plan length at all. As strange as it sounds, the court ruled that this only applied to a negative DMI when your ABOVE the median.

Here's the link:

http://www.************************/2008/08/09/chapter-13-no-time-length-for-the-ninth-circuit-part-1-of-2/

[woeisme]

Chances are showing no disposable income and being far under the median on the Means Test will make it very difficult (if not impossible) to file Ch 13 unless you surrender secured assets to create at least $165/month of positive disposable income to fund a Ch 13 plan. Sorry the news isn't what you hoped

I don't think the OP is under the median on the Means test, he is single and makes over 100K a year (>9,000/month) so I guess I'm wondering what expenses are making him have no disposable income? That's what he needs to look into, seeing where he can make changes in his budget to allow a CH 13 to work. Like where are those monthly living expenses of $3290 all going??? Am I correct in that this is what you are spending AFTER house and car are paid for? I think there really is some places to cut there if that is the case. I mean that is more than my budget for a family of 3, and that is without my house payment, our budget is well under $2000 after the secured loans are paid. I think there needs to be some serious thought about how you are spending $ since that amount is more than most people are spending total, let alone on just misc expenses! Like I said, unless there are some justifiable excess expenses in there like on-going medical or something.

Also, to the OP, are you sure your trustee allows student loan payments while in the CH 13 plan? Not all do (I'm lucky that mine allowed it as an expense) but some trustees make your student loans go into default during the CH 13 and that payment $ goes to your other creditors, which is a really horrible situation, but happens.

If you really want to make a CH 13 work, you're going to have to find some place where you can make cuts in the budget (for example, not use your total food allowance as determined by IRS standards, or clothing, etc.) If the judge doesn't think the plan will work, it's not going to get confirmed.