Value of assets added to overall debt?

[Despotes]

I have yet to file and fear I may be pushed into Chapt 13 from 7 and have a question.
When you list all of your assets does the Trustee add the value of these assets to the amount of total debt you owe?
Ex. 38,000 in unsecured cc debt. TV worth $1000. Is the value of the TV added to the $38,000 resulting in having to pay back $39,000?

I'm assuming you get to keep everything (that's unsecured) in a Chap 13. Yes?

[momofthree]

You get the same exemptions that you get in a chapter 7. So, if you have $20k worth of assets, but they all qualify for an exemption under ch. 7 then there's no minimum that you have to pay into the 13.

We have nearly $30k worth of assets (including a couple paid off vehicles), but they all have exemptions, so we don't have a minimum to pay in. We're actually at a 0% payback to unsecured.

[Despotes]

My state only has a $200 exemption for a TV. That brings the value down to $800. Does the $800 get added to the overall debt repayment plan like other non exempt assets?

We only get a $200 exemption on most individual items. Car $5000.

[flyinbroke]

Is the TV still in the box? Electronics do not retain value that well...unless you bought a 2-3K TV it may not be worth that much.

[Despotes]

No, not in the box. Don't even have the box. Paid 3K back in June '09.

Everything over exempt value is added to the final debt repayment plan?

[momofthree]

No, not added in, but it will mean you must pay that amount as a minimum. For example, lets say you have assets in excess of $10000 over your covered exemptions, you would have to pay at least $10k into your plan over the 36- or 60-month term. On a 36-mo term, that would be at least $277 a month + trustee fees + attny fees. If you're already having to pay more than that each month, then you're covered.

Does that make sense? I don't always explain things well, so if you're still confused, maybe someone else can help me out...

[Despotes]

What if your disposable income level does not permit the additional $277/mo increase?
I owe about $38,000 as of this moment. My disposable income level should only permit a $500-ish/mo payment over 60 mos. That's only $30K I can afford to pay back.
How would you factor in 2K of non exempt items?
It really shouldn't effect anything because I will be paying back at least 2K right?

[momofthree]

What if your disposable income level does not permit the additional $277/mo increase?
I owe about $38,000 as of this moment. My disposable income level should only permit a $500-ish/mo payment over 60 mos. That's only $30K I can afford to pay back.
How would you factor in 2K of non exempt items?
It really shouldn't effect anything because I will be paying back at least 2K right?

It's not an increase, it's a minimum payment. If you have $2k in non-exempt items, then you'd have to pay back at least $2k to your unsecured creditors, which would be $55.55 per month. If you have a DMI of $500, then you'd be waaaay over that amount of payback. The non-exempt items don't increase your payment, they simply dictate the bare minimum required payment. Obviously, if you're paying back $30k, then you're way over the $2k minimum. The law simply states that in a 13, your unsecured creditors must get at least as much money as they would if you filed chapter 7.

[Despotes]

Very good. Thank you.
Do you know if the Homestead Exemption can be used if I rent?

[momofthree]

Don't know how reliable this site is, but it says it was updated 12/09. Here are the Maine exemptions (says that you can't use federal):

http://www.thebankruptcysite.org/exemptions/maine.html

Here are the "Misc" exemptions you can use, which looks like a "wildcard" to me, but I could be wrong, I'm not a professional. The unused portion of "personal injury recoveries" alone is $12,500 which is a nice chunk of change on it's own.

Miscellaneous

14-4422 - Unused homestead to $6,000 or unused total for tools of trade, personal injury recoveries, or household goods & furnishings, clothing, appliances, books, animals, crops, and musical instruments.

[Despotes]

Can a renter use the Homestead Exemption?

[momofthree]

no, as there is no homestead to exempt.

However, you can use up to $6000 of the unused homestead exemption as your wildcard.

You would probably be better served using the unused portion of the personal injury recoveries since it is more than double what you can use in the unused homestead exemption. ($12.5k vs. $6k)

[Despotes]

So the Homestead Exemption does apply to renter's personal assets via the Wildcard?

[momofthree]

Yes, you can either use the unused portion of the homestead exemption up to $6000 OR use the unused portion up to $17,500 of personal injuries recoveries, tools of the trade, & household goods. I think you'll probably find that all of your assets are covered by this wildcard exemption.

[Despotes]

It just sounds strange I can use the unused part of the Homestead Exemption (Wildcard) even though I don't qualify to use the Homestead Exemption. Doesn't it?