Chap 13 uncertanity

[Crazymel21]

Met with my lawyer today to go over paperwork and figures. Originally had planned for a Chapter 7, but getting the feeling my lawyer is pushing more for a 13 instead.

I am married, filing alone. 2 vehicles and home are in my husbands name only. 40K CC debt, 120K school debt and 25k tax debt. DMI ~750

Lawyer is concerened that trustees will think DMI is too high for Chapter 7 even though I don't have any assets in my name. But lawyer is saying 13 payment will be $900-1200. I know it's not meant to be "cushiony" during my payment period, but if my payment is so high and I can't save anything, what in the world is the point of filing?

I'm really down and upset about all of this. Not having the best support from my husband and I understand as most of the debt except taxes were there before I met him. I'm just not understanding how we can AFFORD a payment that high (not to mention, I am needing a newer vehicle too - that will only make my payment go up).

Any thoughts?

[justbroke]

If you are at positive $750 DMI... that's a Chapter 13 no matter how you slice it. Additionally, if you're family income is over the medium, you are going to get more of a fight anyhow. It doesn't matter what assets you have or not. It's all about your income less your expenses... producing the magical number known as the disposable monthly income (DMI).

If the DMI is over $182.50... you're usually going to be pushed into a Chapter 13 unless you have a rebuttable defense.

[momofthree]

Buying a newer car will serve to lower your dmi, so less money will go to your unsecured creditors, unless there is a min. you are subject to, in which case, you're right, it would just increase your plan payment.

[biotechsolution]

if the taxes are priority the entire amount will have to be paid in the plan time. The school loans won't be affected but I'd pay what you can doing the plan.
If your attorney thinks the payment will be 900-1200 you at pretty much a 100% payback.