Disposable income question

[Skipper]

I am considering a Chapter 13 filing in lieu of a Chapter 7, on the basis of stripping a HELOC which is now unsecured (due to the declining value of my home).

Although I qualify for Chapter 7 (passed the means test), I believe that I should be able to file Chapter 13 and strip my HELOC, along with discharging three other unsecured debts. In doing this, because I have a negative disposable income (as calculated), I do not believe I should be subject to a re-payment plan. It would seem that I should have a time-line similar to that of a Chapter 7 case. I believe that this has been upheld by a 9th Circuit Court ruling.

Has anyone had an experience or have any thoughts?

Thanks in advance.

Skipper

[firefly]

We have a negative disposable income, with a lien strip, but still have a payback for 5 years. Paying back past due on home loan, trustee fees and attorney fees. We have zero percent on unsecured. You'll still have some kind of payment.

[Skipper]

We have a negative disposable income, with a lien strip, but still have a payback for 5 years. Paying back past due on home loan, trustee fees and attorney fees. We have zero percent on unsecured. You'll still have some kind of payment.

Hi Firefly,

As of now, I am current on the mortgage (in the middle of modifying) and I intend to pay my Atty upfront. It is only the unsecured (cc's and HELOC) that I need to discharge, due to a substantial paycut. It is because of the paycut that I have negative DI...

Question; if you were current on the home loan, could you have paid your attorney fees and Trustee fees (are the Trustee's fee's a % of the payback to the lawyer and mortgage company?) upfront, and not had to go to a 5 year payback?

Thanks again for all opinions.

Skipper