How are payments figured

[freshstart36]

I am filing for Chapt 7 but if I do not qualify, I was just wondering about Chapt 13.

I am so confused about how chapter 13 works. Can anyone tell me how they come up with what your payments will be and for how long?

Is it just with your unsecured debts that they figure it on. The only secured thing that I am keeping is my home. The mortgage payments are current on it. So I would continue to pay it how I am doing it now I would assume.

I owe about $30,000 in unsecured dept and I am surrendering my vehicle and will probably be about $6,000 upside down after they take it.

Does anyone know what my payments might be?

If you need more information please feel free to ask.

Thanks again for all your help.

[HHM]

That is somewhat of a broad question, the basic answer is simple, but there are many "what if's"

The basic answer is this...your chapter 13 payment is
Total income - reasonably necessary living expenses

Thus, what ever is left over after you pay your living expenses (housing, food, taxes, gas, etc etc), is what you would pay each month into a chapter 13.

[freshstart36]

Additional Question?

My 6 month average income is higher right now because I cashed out 2 life insurance policies and received 2 distributions for emergency hardships from a retirement plan. Will they base my payment on my normal income minus those amounts since they were 1 time payments and are not a normal part of my monthly income and I won't be receiving them again.

[lrprn]

My 6 month average income is higher right now because I cashed out 2 life insurance policies and received 2 distributions for emergency hardships from a retirement plan. Will they base my payment on my normal income minus those amounts since they were 1 time payments and are not a normal part of my monthly income and I won't be receiving them again.

No, *ALL* sources of income - whether they are one-time events or not - are calculated into your income for the Means Test. This is the case whether you file Ch 7 or Ch 13.

The only way out is to wait to file until the six-calendar-months lookback no longer includes the one-time income events.

[freshstart36]

Thank you

Thank you for your reply. I think that is so unfair the way they figure that. It should be on what you normally make. Who comes up with this stuff, probably rich people. LOL