Please help me w/ overview of ch 13

[contemplate]

Hi again all. We are still looking into 13 but haven't found a 2nd attorney to consult w/ yet. Can you give me the ch 13 overview for dummies? LOL If I wanted a rough idea of what we would have to pay & live on... I take my total monthly income (after taxes both dh & I)then subtract total expenses (do I include credit card minimums or is this just what my total expenses would be w/ out cr card payments?) Then this gives me "disposable monthly income" correct? Then is this the amount we would have to pay toward cr. cards? Then we have to live on the money set aside for expenses w/ no extra (that is why we should put entertainment/gifts/ clothes in plan)? Also, how do you know if you would be considered 100 % payback? We currently can meet all the minimum payments and are not behind on anything. We have stopped using cr. cards, yet we are living check to check. DH tries to work as much OT as possible to keep us afloat.

Thank you so much for your time!!!!!
FYI(If you haven't read my previous posts, we have a combined income of 100,000 per year. 115, 000 cr. card debt. 40,000 or so in student loans and owe 200,000 on mortgage & heloc combined. TIA

[lrprn]

Hi again all. We are still looking into 13 but haven't found a 2nd attorney to consult w/ yet. Can you give me the ch 13 overview for dummies?

Here are a few good Ch 13 websites that explain how Ch 13 works very well:

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter13.html

http://www.abanet.org/publiced/practical/bankruptcy13_whatis.html

http://moranlaw.net/13workings.htm#Chapter%2013%20practice

If you would rather have a book to read, then the NOLO Ch 13 book is a really good one - you can order it here - http://www.nolo.com/products/chapter...uptcy-CHB.html

If I wanted a rough idea of what we would have to pay & live on... I take my total monthly income (after taxes both dh & I)then subtract total expenses (do I include credit card minimums or is this just what my total expenses would be w/ out cr card payments?) Then this gives me "disposable monthly income" correct?

Oh, if it was only this simple....sigh....

To file Ch 13, you also have to complete the Means Test and Schedules, but this time using bk forms B22C rather than the B22A forms used to file Ch 7. You also need to use the required figures for housing, transportation, etc. on the Means Test. On the Schedules, you can use your real expenses.

Your disposable income is calculated through a complicated set of formulas based on your declared total gross income for the last six calendar months, your secured asset expenses, your living expenses, and anything else that must be included in your plan (alimony or child support, for example). Unsecured debt payments like credit cards, medical bills, etc. are not included in the calculations.

Also, how do you know if you would be considered 100 % payback?

You can't tell this until an experienced bk lawyer who files a lot of 13s completes your Means Test and Schedules to determine your disposable income. Whatever your disposable income ends up being, that's your proposed Ch 13 payment.

After you file, then your secured and unsecured creditors can send claims to the bk court. Sometimes some creditors don't want to be bothered and just take the write-off instead. Depending on which creditors make claims, your confirmed Ch 13 payment is divided into the total $ amount of the claims made by your creditors. This is what determines your payback % to your unsecured creditors.

At your income level, your Ch 13 plan payments will be made for 60 months or until all your unsecured creditors who made claims are paid back 100% of what they claimed - whichever comes first.