Disposible Income

[brokenomore]

How is this determined?

If someone has a very low income, but very low expenses, does he still have disposible income?

An attorney suggested that I should file chapter 13 to make it easier for my ongoing business, and not to have receivables taken. Currently my income is very low and we've been just getting by, but what if somehow on paper it shows we have leftover money?

And what if it shows we have negative disposible income?

We have about $70k in unsecured debt, and no house or mortgage.

[lrprn]

If someone has a very low income, but very low expenses, does he still have disposible income?

A question for you first - is more than 50% of your debt business-related? If yes, then you don't have to do the Means Test to determine if you have disposable income or not.

If more than 50% of your debt is personal, then you will have to complete the Means Test and Schedules whether you file Ch 13 or Ch 7. If those show disposable income greater than around $180/month, then you *might* be pushed into a Ch 13 by your trustee.

Currently my income is very low and we've been just getting by, but what if somehow on paper it shows we have leftover money? And what if it shows we have negative disposible income?

There's only one reliable way to find out if you have disposable income or not. That's for an experienced Ch 13 lawyer to look over your finances and complete the Means Test and Schedules if those are required. Until that happens, this is just another "what if?" conjuecture. You need to find out where you stand rather than just worrying about what *might* occur.

If this lawyer is the only one you've interviewed, then it's best to interview at least 2-3 more. It's not that the advice this lawyer gave you is bad - you haven't given us enough information to tell anything about that - but the premise that your business could be better protected in a Ch 13 might be true. See what several other experienced Ch 13 lawyers say when you interview them.