Need more help

[minibux]

Can anyone share some info on Chapter 13? I am curious as to what happens to your monthly payment if you get a raise? And does the trustee take your tax return if you get a refund? How often do your finances get evaluated during the payment plan?

I may sound a bit "green", but really need help. I am trying to get as prepared as possible. We met with our lawyer already.

[SMinGA]

That really all depends on the district, and even then it can vary. (My understanding at least.) Under median 13's will likely get less scrutiny.

Some districts require all refunds to go to the court, some require none. OThers require refunds over $X go to the trustee. As to income changes - seems most have a limit, such as income increase of 10% must be reported. But if you end up having to modify your income, you can also update expenses if anything has changed.

[minibux]

How can I get info about what median we fall into? I am in Ohio, we made 42K last year and likely will make the same this year. We are a family of 4.

[SMinGA]

There is a helpful links sticky/thread - I think in the General BK folder. I'm sure you can find it there. If not, just google median income and you should find sites. It is based on family size, state.

Being over median for a 13 means you MUST do a 60 month plan. Under median for a 13 means you can do a 36 month plan. For many the means test is an obstacle to file ch. 7 - being over median makes it harder to file ch. 7.

[lrprn]

How can I get info about what median we fall into? I am in Ohio, we made 42K last year and likely will make the same this year. We are a family of 4.

Here's a link to Ohio's median income by family size for all bankruptcy cases filed after March 15, 2010 - http://www.justice.gov/ust/eo/bapcpa...come_table.htm

Making $42K gross last year with a family of four means you are well below Ohio's median income if you are going to file now or within the next few months.

However, if the $42K you made is net take-home, then please share what your gross income has been for the last several years. Chances are with a family size of four, you will still be under the median.

Unfortunately it's not just about income when Ch 13 is involved. The length of your plan and your disposable income calculations depend on a very complex cross-comparison of your gross income, your secured assets, unsecured amount you owe, and your living expenses. Ch 13 is complicated. That's why having an excellent bk lawyer who understands Ch 13s inside and out to file your 13 is extremely important.

You've met with one lawyer. You need to meet with at least 2-3 more. Set up those free initial consultations. You need to hear more than one opinion about what's going to work best for your family in your unique financial situation. Ch 13 is all about interpretations and case law - you need a really good lawyer who is familiar with both and understands what will fly with your local Ch 13 trustee and the local bk court judge.