Increase in income question

[95kindebt]

We are getting all of our ducks in a row to file the first week of december.We have a couple of questions.

1. My husband has a LLC, and it usually doesn't do much business, but next year it looks like he'll get a "check" of about 30K. I'm assuming we'll have to turn this over to the trustee.

How does this affect our repayment plan? Is it just a "bonus" to the creditors? Or does it come off the top of our confimed ammount of payback, and then we might be able to "buy out" early, if he gets another windfall?

2. His question, is "what's the benefit to filing a CH 13, if he gets these huge chunks of money, and we end up with a 100% payback? Is the payback amount the amount we owe today? 135k (100 secured/35 unsecured) or is it whatever the creditors file?

Any advice is helpful. Thank you.

[andy158]

1. My husband has a LLC, and it usually doesn't do much business, but next year it looks like he'll get a "check" of about 30K. I'm assuming we'll have to turn this over to the trustee.

How does this affect our repayment plan? Is it just a "bonus" to the creditors? Or does it come off the top of our confimed ammount of payback, and then we might be able to "buy out" early, if he gets another windfall?

If you are in a confirmed chapter 13 then yes it will have to be turned over to the trustee. It is not a "bonus" to your creditors. It is an effort to repay as much debt as your income allows minus expenses. You can only "buy out early" if it is a 100% payback and you have met the claims of your creditors.

2. His question, is "what's the benefit to filing a CH 13, if he gets these huge chunks of money, and we end up with a 100% payback? Is the payback amount the amount we owe today? 135k (100 secured/35 unsecured) or is it whatever the creditors file?

The payback amount you would owe in the plan is what the creditors claim secured and unsecured. The benefits of even going 100% payback is that you will save a ton of interest and be done in five years.