Duration question

[needanswers]

I asked the paralegal what can determine the duration and she said that we can choose and that if we go 36 months, the payment would be higher than in a 60.

What am I missing? Because if I were a TT, I would say, "If you can afford to pay X for 36 months, you can pay X for 60 months."

I just don't want to take away from our living expenses to get this done faster and then shoot myself in the foot in the long run.

[momofthree]

You only have the option of a 36-month term if you're below the median state income. I mean, technically, you could pay X amount for 10 years, but the guidelines allow you to pay over 36-months, so the TT can't say jack to you. As far as he's concerned, you're paying your DMI over the specified amount of time. He doesn't have to know about all the number juggling that goes on behind the scenes....

I take that back, you can also have a 36-month term if you're paying 100% back, regardless of income level. In that case, the TT won't care about your term...

[needanswers]

We are over the median state income by a few hundred dollars/month. We show negative numbers once you get to the basic living expenses.

So if it's only based on the median, a 36 month plan is unrealistic in our case.

[momofthree]

We are over the median state income by a few hundred dollars/month. We show negative numbers once you get to the basic living expenses.

So if it's only based on the median, a 36 month plan is unrealistic in our case.

Yes, you'll be in a 60-month payback unless you are in a 100% payback plan. I'd be wary about trusting anything this paralegal says since she doesn't even seem to understand how the term of a chapter 13 is determined. Save your questions for the attorney. ;)

[momofthree]

If you're in the negative for basic living expenses, why are you in a 13 rather than a 7?

[sheilaE]

HI needanswers,
I'm new hear and am trying to learn as much as possible before filing.
You say you show negative numbers once you get to the basic living expenses. We are pretty much in the same boat. I just was wondering-is the Trustee wanting to take every bit of extra $ that gets you through the month? This part keeps coming back to haunt me. I'm so worried they are going to leave us strapped each month

[needanswers]

If you're in the negative for basic living expenses, why are you in a 13 rather than a 7?

We have a 2nd mortgage that can be stripped. Frankly, I'd prefer to just do a 7 and pay the 2nd mortgage in full but all the lawyers we have interviewed say it's not the best "business decision". I am scared about not paying the 2nd mortgage for 5 yrs and the statistics of C.13 are scary. It's literally keeping me up at night.

I'm experiencing what I can only guess is the 7 stages of grief.

[needanswers]

HI needanswers,
I'm new hear and am trying to learn as much as possible before filing.
You say you show negative numbers once you get to the basic living expenses. We are pretty much in the same boat. I just was wondering-is the Trustee wanting to take every bit of extra $ that gets you through the month? This part keeps coming back to haunt me. I'm so worried they are going to leave us strapped each month

I'm new, too, so I really don't know. I don't think the Trustee wants to make you eat ramen for 5 years. But I don't think they want you to have any more extra than is allowed, either.

I'm guessing that there are things that we can easily over look from our expenses and it would appear that we have more money than we actually do.

Right now I'm trying to keep track of what we spend on things that we just don't realize. For example: I thought since my kids are in public school, there aren't any allowed extra expenses. But there are so many we don't think about every day: School lunches for 3 kids, school bus pass, fundraising, projects, yearbooks, pictures. I don't know if any of that is even considered "allowable" but it adds up.

[sheilaE]

We also have a 2nd with a payment of $500.00 that will be stripped. This whole process is so stressful, but I've learned so much from sitting here and reading everything that I can. I'm anxious to get the process going, but the though of paying for 5 yrs. is scary when I don't know how much they are going to want.

We have a daughter who will finish up J/C next year, but we won't have the funds to send her to a our local University-which by University prices is pretty affordable. She's our only daughter and if she and her fiance decide to get married within the next few years, we won't be able to give her a wedding either. Another son will graduated from High School in 2 years. Paying $1000.00 per semester for books and classes at our local JC will also be something we probably won't be able to do. All these things keep running through my head and like you-keep me awake ALL night.

[sheilaE]

Yes-we have 3 as well- and our Lawyer said we can list all the school expenses. So like you-I'm keeping track of everything. Public school IS expensive. P.E. clothes, fees for electives, school lunches, yearbooks, field trips, fund raisers like jog a thon. The list goes on and on.

[SMinGA]

If you're over the median - you must do 60 months.

If you're under the median you are eligible for 36. But if you don't have enough DMI to pay off what needs to be paid off in 36 months, you can do 60 even if below median. Such as if you have $20,000 in priority debt and can only pay $500 per month. 36 won't work, 60 will.

When figuring out your DMI with a 13, remember to not include the debts you have now that you won't be paying then. Such as a 2nd that is getting stripped, or car loans that are being included in the plan.