Question Re Chapter 13

[tra2555]

Question////
Our total Gross income is $8,850/month. Our Monthly expenses is approx. 6,200. We have $ about $2600 / month difference ( extra)..base on this, how do they calculate your monthly payment in Chapter 13.....
and How is the payment to the trustee being made? mandatory Payroll Deductions or send them a check monthly?

What will happen if your income increases due to Overtime during the 3 to 5 year period?
What happen if you're to receive a tax refund during the 3 or 5 year period? Will the trustee take all the extra money you make?

WE have 150K CC debts and unsecured Personal loans
No assets ( House)
3 cheap cars (0ver 5 years old) paid Off.
Thanks for your help.

[justbroke]

how do they calculate your monthly payment in Chapter 13

Using the Means Test (Form B22C). You can check it out by performing a test at LegalConsumer.com (look for "On-Line Means Test"). This will give you an idea of what your "disposable" income really is.

How is the payment to the trustee being made? mandatory Payroll Deductions or send them a check monthly?

Depending on your District, it may be a mandatory "wage deduction" from your Payroll. In other Districts, it's optional as to whether you have a wage deduction or send in certified funds.

What will happen if your income increases due to Overtime during the 3 to 5 year period?

Again, depends on yoru District but the majority will say that if you see more than a 10% increase in income, your Plan payments will need to increase. The only exception is if you're already in a 100% payback plan.

What happen if you're to receive a tax refund during the 3 or 5 year period? Will the trustee take all the extra money you make?

This depends as well on the District. Most, take your entire refund as they consider it an "overpayment". Very few let you keep the refund or some pre-determined portion of it.

[tra2555]

I Live in Los Angeles, Ca.
Anyone in Los Angeles Area ..who can answer my Question?

Thanks to all your response...I really appreciate it.

[13inIN]

Payment methods just depend on your court district and trustee's rules.

Overtime most likely won't change your payment unless it is excessive as Justbroke mentioned. The trustee will receive your tax forms every year and if he/she checks, they could challenge that you should pay more.

If you district is like mine, you will have to include tax refunds as payments since they are just withheld earnings anyway. Here we are allowed to keep $500 and the net goes into the plan. (unless you are paying back 100%).