HELP - 'Disposable income is not determined under � 1325(b)(3)'

[keezeed]

[optimistic1]

What detmermines wether you are under or over is based on your states median income level, which changes every year based on census bureau data.

Also, please keep in mind, that you really need to be a para-legal or an attorney to accurately input data into the means test, you can easily enter in the wrong data by misintrepreting what the code states.

It doesnt neccessarily mean you dont qualify for a Ch.13. It just means that your disposable income is calculated from Schedule I and J. So, take your current income and get a monthly figure, then get your expenses together. Use the link I gave you below to help you determine your monthly expenses.

After you do that, you need to determine what needs to be paid in your plan, such as mortgage arrears, taxes, secured debts, non-dischargeable debts, attorney fees, as well as a host of other possible items you need to pay in your plan.

After you do that, you will get a figure, lets say its $10,000, with interest and trustee fees and everything added in also.

You are under median based on the means test, so your plan can be anywhere from 36 to 60 months, but lets say its 36.

10,000 divided by 36months gives a payment of $277.77/monthly for your Chapter 13.

So when you come up with a budget, you need to show the court, that you can live reasonably and yet, still have $277.77 a month to dedicate to your plan. Otherwise, your plan will not be confirmed.

Its a process of re-visiting your monthly expenses, and if you cant make it work somehow, then you shouldn't try to file a Chapter 13.

If you can pay less per month, then you file a request with the court to extend the length of time to pay your plan.

10,000 divided by 60 months, yields a payment of only 166.66, which is less money per month.


While paying some money to your creditors is valiant of you, they dont neccessarily need to be paid anything.

What is your sole reason for wanting to file a bankruptcy? Are you delinquent and incapable of paying your unsecured debt? Or is it just the car? When you say you can file a Chapter 7 on paper, what do you mean by that??

[keezeed]

My wife just lost her job so if you look at Schedule's I/J we are in the red.

The only reason we can survive is that very soon my wife will start getting unemployment benefits.

Those benefits along with whatever employment eventually comes her way will allow for a comfortable CH13 plan depending on the payment required.

I've been told that unemployment does not count as reliable income thus cannot be used to substantiate a plan for payback.

I think I'm missing something though.

EDIT: All debt is unsecured consumer debt, even the car.

[optimistic1]

If your current income and expenses are in the red, you will not be able to propose a confirmable plan to the court, if you filed today you would waste your money.

Your'e right, it shows instability for sure, but unemployment is actually counted as income in the B22C Means test form, how much the court will value that as a wage earners income, probably varies from state to state.

You will open up a can of worms by being confirmed with that scenario though, because when your wife finds a new job, your income will change, and you will need to modify your plan at that point, which will cost money.

[keezeed]

How much would it cost to change it?

Thank you for the help too.

Seems like we are in a tough spot.

[optimistic1]

My attorney charges a flat fee of $650 for modifications on your plan, by your own fault or not. Some will just add it into your plan payment so you pay nothing up front, others want it up front.

You actually dont sound like you are in such a tough spot, you sound like a prime candidate for a quick and painless Chapter 7, I would seek that avenue and get a fresh start asap.