Disposable Income-Please help me understand!

[Pinkrose]

Okay here is the deal My husband and I have 16,000 income and 10,000 expenses. Now we have 5000 disposable income. Does the disposable become the payment to bankruptcy?

Here are the stats:

110,000 in BK
19500 cram automobile
most of the bills are collections and credit cards.
The lawyer is saying that 20 percent can be right off of the unsecure debt. I just not understanding all of this. Feel free to ask more questions, because I'm not sure if I'm explaining this corrrectly.

[justbroke]

Okay here is the deal My husband and I have 16,000 income and 10,000 expenses. Now we have 5000 disposable income. Does the disposable become the payment to bankruptcy?

No, it's part of the payment. Depending on your District, you may be required to pay all secured debt and/or all arrears through the Trustee. The disposable income (DMI) would be on top of that (debt service) payment.

Please take the Means Test at LegalConsumer.COM and then come back here and tell us the results. The calculation of "disposable income" is a mechanical formula and is specific to where you live (County), family size, and types of debt.

The lawyer is saying that 20 percent can be right off of the unsecure debt. I just not understanding all of this. Feel free to ask more questions, because I'm not sure if I'm explaining this corrrectly.

I don't understand what you mean by "20 percent can be right off of the unsecure debt". Makes no sense.

Please just take the on-line means test and let us know the results.

(If your numbers are right...) My very quick look, says that you'll be in a 100% plan, but you'd only be paying $110K over 60-months. While your DMI is projected (by you) as $5K a month, you would only need commit $1,883/month to pay 100% to the unsecured creditors.

Or, if you are smart and can deal with a tight budget, pay the $5K/month DMI for 22 months and be done in less than 2 years! However, this may be tough, so you may want to spread it out over a longer term (36-60 months).