PRIORITY versus Unsecured........

[mdl]

I have a question. The following will be in my Chapter 13.
House will be paid outside -
Car - $16300 - should cram down to $275 a month for 60 months
IRS 2008/2009 - Installment Balance - $22000 -
IRS 2010 - will file prior to BK filing - $15000
Unsecured Credit Cards - $54000

My atty says my payment will be about $1000 a month - that will leave practically nothing for the unsecureds - is that "just the way it is"?

ALSO, When I am figuring income, it says NOT to include my DH's SSDI - if that is the case, then my "disposable income" is NEGATIVE $1.3K
So I am kinds confused on that too. Because another form says TO include it.
THANKS!
MDL

[despritfreya]

1. You are, what I call, a "tax case" due to the amount of taxes (priority debt) you owe. If you have no ability to pay unsecured creditors then your Plan will be treated as a "disguised Chapter 7", paying only the administrative claims (attny & trustee), secured claims (auto) and priority claims (taxes - w/out interest). Very, very little will be paid to unsecured creditors. That is just the way it is and it’s a pretty good deal.

2. SS is not counted on Form 22 but it is added to Schedule I (your true monthly income) and is utilized to support a Plan payment that meets the requirements to pay the above items.

Hope that helps.

Des.

[lrprn]

Ongoing Social Security benefits are counted when your bankruptcy budget (Schedules I and J) are created, so if you and your husband are filing together then his SSDI benefits may change your disposable income picture. Follow your lawyer's guidance about how your husband's SSDI income may impact your Ch 13 payment - that's what you are paying him/her for.

Also keep in mind that until your lawyer plugs in all your pertinent income and expense figures and does an actual calculation of your disposable income on the Means Test and Schedules, the payment your lawyer estimated for you is just that - an estimate. Your lawyer will file the Means Test-generated $ amount as your monthly payment in your plan, but it's possible after filing your trustee may object to that amount and want you to pay more.

Until your Ch 13 plan is confirmed by the bk court, your lawyer's monthly payment estimate is just a "best guess" at this point. Keep in mind that your payment could go up more before you are confirmed if your trustee believes you aren't paying all your disposable income into the plan.