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Forced to give up secured assets for higher % payback

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    #1

    Forced to give up secured assets for higher % payback

    I was talking with an attorney today and she mentioned that it is possible that we could be forced to give up secured assets to increase our % payback to unsecured. She's looking into a 10% payback, but this would still be over our DMI. She said that we could be forced to give up secured assets like cars (just barely over IRS limits) to pay a higher percentage back like 40%.

    This doesn't quite make full sense to me considering the allowance for vehicles is $489/each and this would make little difference between our $552 and the $489. I could see having to cover the difference of the actual payment v. IRS limit but not giving up the car entirely to use the full amount to unsecured.

    She said based on income, a higher % payback is expected.

    This happen to anyone else? This seems against the purpose of the DMI calculation.
    19% dividend
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    #2
    Originally posted by debtinohio View Post
    This doesn't quite make full sense to me considering the allowance for vehicles is $489/each and this would make little difference between our $552 and the $489. I could see having to cover the difference of the actual payment v. IRS limit but not giving up the car entirely to use the full amount to unsecured.
    Yes, that's all you would need to do is pay the different of $63.00/month. Unless, you have some equity in that vehicle and didn't exempt it.

    Originally posted by debtinohio View Post
    She said based on income, a higher % payback is expected.
    My income is well into six figures (significantly). I'm paying 0% to unsecured creditors. While Ohio may be different, I don't see how anyone makes that statement... you make more so you should pay more.

    Originally posted by debtinohio View Post
    This happen to anyone else? This seems against the purpose of the DMI calculation.
    No to me!
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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      #3
      Yeah - it's wierd to me. She's talking with a 25+ year bankruptcy attorney and then getting back to me. She may refer me to the other attorney with more experience.
      19% dividend

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        #4
        Yeah - I'm at 132K or $143K if rental income is allowed (that income property may be included as it has - income).

        I don't get it.
        19% dividend

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