NV chap.13 question re: disposable income calculation

[air1996]

I am new here to this board and I have learned so much just be reading all these posts, so thank you to everyone who has posted so much information! We live in NV and I have questions about how a chapter 13 is calculated in this state. I have found the laws for exemptions in the state and I have a few questions. Personal property exemption lists motor vehicle up to $15,000. Does that mean per vehicle, up to two? And is the $15,000 total equity only, or the actual price of the car? We own two cars, both paid for, one worth about $5,000, and one worth about $14,000 I think. Also, the wages exemption states "the greater of the following, 30 times the federal minimum hourly wage per week or minimum of 75% of disposable weekly earnings".

Does this mean that we would get to keep at least 75% of our disposable weekly earnings and pay the other 25% of disposable earnings towards the chap. 13 repayment plan?

Is anyone familiar with the state of NV and their laws, or have you gone through this yourself? Any help is greatly appreciated!

FYI: When I fill out the schedule J, I come up with an excess income of $2600 per month. So, would my estimated chap. 13 payment be approximately 25% of this amount? I'm confused, but I want to be as accurate as possible. Thank you!

[air1996]

disposable income calculation in any state??

I just wanted to clarify, if anyone can tell me what percentage of their U]disposable[/U] income was used to go towards the chap. 13 payment, I would really appreciate it. I'm in NV, but any info is more helpful than none! Thank you!

[LadyInTheRed]

Your chapter 13 payment must be 100% of your disposible income.

The exemptions determine what property a debtor can keep in a Chapter 7. In a Chap. 13, if you have non-exempt property, you must pay at least the value of that property over the course of the plan. (I think I got that last part right and am sure someone will correct me if I don't.)

[optimistic1]

IT DEPENDS!

From (and note this is not a article from Nevada State mind you),

http://www.wiwb.uscourts.gov/Decisions_tsu/In_re%20Mancl_U.pdf

Form B22C should “be the basis for projected disposable income unless there is
evidence that simply using the historic six-month snapshot does not form a
reasonable basis for projecting income forward.”


Your schedules will provide a much more realistic disposable monthly income, which is why that is what most courts will utilize. The B22C form is simply a starting point.

It makes sense, because, lets say you lost your job within the previous 6 months, but still worked 3 of those 6 months. You went below median, and based on the B22C your disposable income is $20/month which could hardly fund anything.

If the court used $20/month instead of using your projected disposable income based on Schedules I and J, which would be much more because your working full time again, it would not make much sense.

On the other side of the coin,

A debtor could have current monthly income that is much lower due to job loss, but if a court was to utilize the B22C form for determining monthly income, they would be confirming a plan that simply could not be funded.

You can google each of these case laws pertaining to this topic below, and read the article link above too, this is a topic that comes up quite a bit.

In re Kibbe, 361 B.R. 302 (BAP 1st Cir. 2007)
In re Pak, 378 B.R. 257 (BAP 9th Cir. 2007)
In re Lanning, 380 B.R. 17 (BAP 10th Cir. 2007)
In re Chriss-Price, 376 B.R. 648 (Bankr. M.D. Tenn. 2006)
In re Petro, 2008 WL 204670 (Bankr. M.D. Tenn. Jan 23, 2008)
In re Alexander, 344 B.R. 742 (Bankr. E.D.N.C. 2006)
In re Quarterman, 342 B.R. 647 (Bankr. M.D. Fla. 2006)
In re Slusher, 359 B.R. 290 (Bankr. D.Nev. 2007)