HOw do they figure out how much you pay per month?

[SMinGA]

I believe it was said in another thread - ineligible for 7 due to prior filing. (But currently eligible for a 13).

Maybe I missed something, but why are you not fileing a chapter 7 instead?

Blessedmommy, the only thing in the budget you listed that might in my opinion get questioned is $50 in savings. You could easily 'hide' that in clothing, groceries, etc. You might need to explain $150/pet food. Its not REALLY pet food, but I'm not sure how to explain it? Might just take a simple explanation at the 341 to show that $ goes to taking care of resources that yield food for your family...

Bottom line, a ch. 13 plan payment is your disposable monthly income for the length of the plan. There is plenty of room in your budget for you to expand, such as by increasing the clothing, groceries, etc. Its unlikely anyone would question that due to your family size. The simplest way in my opinion, settle on an amount you are certain you can afford for 3 years. You're suggesting $370 and asking if its enough. I say its too much... A more reasonable plan (since your family is large and income is limited) would be to build a plan recommending a payback of no more than $150-175 per month, and show expenses to eat up the rest of your income so that only $150-175 DMI remains. That give you a cushion of about $200 more than you're planning now.

[momofthree]

The simplest way in my opinion, settle on an amount you are certain you can afford for 3 years. You're suggesting $370 and asking if its enough. I say its too much... A more reasonable plan (since your family is large and income is limited) would be to build a plan recommending a payback of no more than $150-175 per month, and show expenses to eat up the rest of your income so that only $150-175 DMI remains. That give you a cushion of about $200 more than you're planning now.

Couldn't agree more! $150 a month would be a reasonable amount for you to be paying. Especially since you're also willing to give them the tax refunds, which puts you in a pretty high payback plan.

[forgotten]

I believe it was said in another thread - ineligible for 7 due to prior filing. (But currently eligible for a 13).

Thanks. Just wanted to make sure they weren't heading down the wrong path.

[forgotten]

Couldn't agree more! $150 a month would be a reasonable amount for you to be paying. Especially since you're also willing to give them the tax refunds, which puts you in a pretty high payback plan.

agreed. At that income and family size there shouldn't be anything more than pennies going to creditors.

[Cristo]

I agree with SMinGA and the others, you should be paying practically nothing to unsecured creditors. With your family size and income even a crappy lawyer should be able to work out a plan where you payback your car loan over 36 months and just pennies to the unsecured creditors. With the age and condition of the cars, you should be able to get the car loan crammed down to the actual value of the cars, which is also pracitally nothing. It sounds like since some of them are not running, the value should be less than $1000 each, probably much less.

So, if your car loan was crammed down to say $2500 that would be divided by 36 months which would be about $70 per month. The rest of the loan would be unsecured and would be paid back at whatever percentage you are paying back to the credit cards. So, yes, I have not done the calculations but I don't see how you should be paying more than $100-150 total for your plan payment and I think you should have your lawyer argue for you to KEEP at least part (if not all) of your tax returns.

Do you have disability insurance? Or a retirement plan? These are legitimate expenses for you if you need to eat up some disposable income. I'm sure some would argue with me, but to me the goal should be to make the smallest payment you can legally get, not to short change your families future to make a payment to Chase or Citi or whoever!

I am well over median income and a family of 1 and I told my lawyer that my goal was to pay 10% or less to unsecureds. It is his job to figure out how to get me there! (I'm close, filing the end of July and then we will see how it goes with the trustee...) I think your goal should be to get as close to 0% to unsecureds as possible. There are people on this forum who are paying 0% to unsecured creditors.

Maybe your lawyer could argue that you need the tax return money to buy reliable transportation.....try not to give it to creditors, take care of yourself!! Chase will not be there for you in retirement.

[SMinGA]

Cristo, I don't think its an actual car loan. But a personal loan secured by the vehicles. May not be eligible for cramdown.

But this is a good topic to bring up with the attorney.

[Cristo]

Yes, thanks, you are right. Don't want to get anyone excited about a cram down that may not happen, but I would bring it up with my lawyer for sure!