Monthly payments

[huntington]

I'm looking at BKing about 175k. 75k is a HELOC, 12k is a car and the rest is CC. What have payments been like? Do they take into account your income?

[LadyInTheRed]

What other payments have been like will not provide a very good hint of what your payment will be. Each case is different.

Your payment will be equal to your disposible monthly income (DMI) over the life of your plan. Subtract your necessary living expenses from your income and that's your DMI and your payment (this is a simplification of what sometimes can get more complicated). Some of your expenses will be based on IRS national, regional and local standards, which you can find at
You can find IRS standards at http://www.justice.gov/ust/eo/bapcpa...anstesting.htm., and others on your actual expenses. The interplay between your expenses and the IRS Standards seems to vary by district. To get your plan approved, you may have to adjust your perception of what expenses really are necessary. Some lifestyle changes may be required.

I see in another post you said you want to "get ahead" while in Chap. 13. Don't count on being able to do that because it is hard to get ahead without disposible income. Chap 13 will help you catch up, stay stable and learn to live within your means while you pay off as much debt as your income allows over 3-5 years. Savings is not an allowable expense, but you may be able to save a little if you can cut expenses even below what is contained in your plan. There is also a chance to get ahead if you have increases in income that do not have to be turned over to the truste. But, most trustees will require you to modify your plan if you have a significant increase in income or get some kind of an unexpected windfall. A few are more lenient.

If a Chapter 13 goes as it should, the debtor will be in a position to get ahead AFTER the discharge.

Keep reading the board, including the Stickies, and you will learn a lot!

[huntington]

Thank you! Yes, I do intend to get "ahead" after, instead of looking at a long tunell to no where! Do your payments adjust as your income adjusts? I know that you can't really pay off the BK earlier then what is programed for. So if I start making a thousand extra a month, do they just "take" that, or is it somehow applied to the balance?

[LadyInTheRed]

Thank you! Yes, I do intend to get "ahead" after, instead of looking at a long tunell to no where! Do your payments adjust as your income adjusts? I know that you can't really pay off the BK earlier then what is programed for. So if I start making a thousand extra a month, do they just "take" that, or is it somehow applied to the balance?

How increases in income are treated vary by district. What seems most common is that you are required to inform the trustee if your income increases by a certain percentage (10% is common). Some trustees want to see your income tax returns every year and may insist you amend your plan if they see a significant increase over the prior year and you have no offesetting increase in expenses. One person reported here that they were told that once their plan was approved, the payment would not change even if their income did increase. I'm guessing that is rare. I haven't even filed yet, so my answers are all based on my hours and hours of reading here and a couple of attorney consults at which I didn't learn much that I hadn't learned here. Maybe someone with some actual experience with an income increase will post.

[tammygirl1]

Question about increases if anyone can answer? What if it is required to submit when it is a 10% raise but you get approx 3% yearly according to merit? Would you contact the trustee the 4th year when it goes over 10% total or not because its in small increments? Just curious.

[lrprn]

Question about increases if anyone can answer? What if it is required to submit when it is a 10% raise but you get approx 3% yearly according to merit? Would you contact the trustee the 4th year when it goes over 10% total or not because its in small increments? Just curious.

This is completely dependent on your local Ch 13 trustee. Ask your lawyer what's your trustee expected to be notified about after filing. Often your trustee or lawyer will give you written instructions about what the trustee wants to know about also.