How small an income with the courts accept in ch 13

[emanze]

Hi everyone!

I'm considering filing 13 so I can save my car, worth about 10k. It's my only asset, I don't own any property.

However, I lost one of my jobs due to a lay off. My weekend job pays me about $700 a month.

I live rent free with my family. My other bills are the normal bills we all have...food, insurance, phone. That will take about 300 a month.

So my question is...will the court accept $400 to distrubute to my creditors every month?? My credit card debt is only about 12k. The reason I'm having to file is I have student loans that have buried me.

Anyway, thanks for any insight!

[lrprn]

Hi everyone!

I'm considering filing 13 so I can save my car, worth about 10k. It's my only asset, I don't own any property.

However, I lost one of my jobs due to a lay off. My weekend job pays me about $700 a month.

I live rent free with my family. My other bills are the normal bills we all have...food, insurance, phone. That will take about 300 a month.

So my question is...will the court accept $400 to distrubute to my creditors every month?? My credit card debt is only about 12k. The reason I'm having to file is I have student loans that have buried me.

Anyway, thanks for any insight!

Given everything you've said here, filing Ch 13 to save your car because student loans have buried you makes no sense. You have no assets except the car. You can't get rid of student loans in bankruptcy, so those payments will start up again with interest added on for the entire life of your 13 plan as soon as your 13 is over. You have almost no expenses of your own. You didn't mention credit card debt - do you have any?

About the car....you say it's worth $10K. How much do you owe on it? If you are upside down on the loan or if the car is completely paid off, then it's time to take a cold, hard, emotionless look at your situation and decide if keeping a thing (the car) that can be replaced is really worth it. (And chances are, given what you've told us here, the answer is no.)