Question about plan

[95kindebt]

We just got home, and it looks like we'll be at about a $1200 payment plan including the 2 cars. My problem is I just did a budget on that and we really don't have much to live on after that!

Take home- $5032

Payment $1200
House $1225
HELOC $720
Insurance $260
Electric $110
Gas $100
Cell $150
Water $115
Garbage $64
Gym $39
Karate $170
Kindergarten (all day so I can work) $172

total expenses $4325

5032-4325 = $707 for food, clothes, gas, misc. for a family of 4. Does this look right?

[Faust]

What's the deal with your heloc? Couldn't you get rid of that through bk or reduce and included in your plan?

[95kindebt]

nope. Had to be paid outside of plan since we're not late. Whta sucks is 50k of it (it's 98k) is debt that we "consolidated" trying to avoid this mess.

[Faust]

That sucks.

[ccfriend]

Is there anyway to cut the Karate costs down?

[justbroke]

We just got home, and it looks like we'll be at about a $1200 payment plan including the 2 cars. My problem is I just did a budget on that and we really don't have much to live on after that!

Payment $1200

What is this "payment"?

House $1225, HELOC $720, Insurance $260

House debt is fine!

Electric $110, Gas $100, Cell $150, Water $115, Garbage $64

Utilities are fine!

Gym $39

That's a no go. See below.

Karate $170

That's a no go. See below.

Kindergarten (all day so I can work) $172

This is okay and in the range.

I see $209/month in expenses that are questionable (gym, karate), if you're trying to eat. You should be stripping your HELOC if you can, that frees up $700+ a month.

Are you over/under median? Who calculated that payment of $1,200? What was your DMI?

Something isn't adding up.

[debtinohio]

Need more details on the house...

What is the first mortgage balance and what is the home worth?

What % payback is being proposed?

[justbroke]

I also notice issues with the percentage of your house payment to your (I'm assuming) net pay of $5,023/month. You're at 43.8% of your net, and that's a lot to be spending on your home... before you even add utilities. If you add utilities, you're at over 50% of your net pay spent on your housing... not including maintenance.

That is just not a good formula.

You really need to let us know about the HELOC and why you can't strip it! Without stripping that you are at 51% of your net pay spent on housing. If you can strip it, you could be under 38% of your net pay for housing, which is still a tad high, but much better than 51%.

[95kindebt]

Karate is the only "sport" my son does. My daughter doesn't do anything, it's our one thing. He wants to be a black belt by the time he graduates. I've stopped getting my hair done (I do it myself) so that he can continue.

The heloc is HELL. OUr home is worth $290k. we owe 186 on the first and 98 on the 2nd. I need to double check those numbers.

Payment includes all unsecured, 1 cram down, and 1 car payment. attorney's fees, $800 back taxes.

I don't have anything in front of me. we just signed the papers, and adjustments need to be made. Then the final plan will be filed the 27th.

[95kindebt]

we're OVER median.

more in a minute I need to get the paper work.

[justbroke]

If you're over the median, then you should be getting the IRS allowances! That's $1,370 alone for Food and Clothing alone, for a family of 4.

There's something wrong with your numbers! Or, there are special conditions, such as keeping certain secured items, that's causing your liquidation test to force you to pay more into plan.

[95kindebt]

House is worth $298k

We are above the median, but hubby has a LLC, that we had to evalusate as an asset. We have $11,500 in assets we have to keep with the LLC. And pay back.

[95kindebt]

I thought we got the FEDERAL guidelines as well.
husband made 110k for the year June 1-May 31.

[justbroke]

I thought we got the FEDERAL guidelines as well. Husband made 110k for the year June 1-May 31.

The IRS Allowances are the "federal" guidelines. I just think there are things wrong with the numbers. Alas, I don't understand the whole LLC thing. I guess it's single-member and you're trying to keep it, and need to pay its value into the plan. If that's $12K, then that's costing you $200/month. With your home cost at 51% of your income, I don't see how you'll survive in a Chapter 13. I think the plan is infeasible based on the information I have right now.

[newbie2]

I concur with the others who have said that you (and your attorney) really need to take a 2nd look at those numbers.

What I fear is this: After a couple of months in to the plan you are going to realize that you can't feed a family of 4 and pay for gasoline, etc on $700 a month.

We are supposed to tighten our belts, but there is a big difference in tightening and doing without basic necessities. You won't have any wiggle room whatsoever for emergencies, and with 2 children and a house you are going to have unexpected expenses crop up during the 5 years.

Please don't file that plan until you've all sat down and gone over the numbers again.