Minimum DMI?

[mountanddo]

Is there a minumum amount that they look at to qualify for a chapter 13? The attorney just went through a quick "what are your expenses" and determined that my payment may be about $150/month based on that. This was just the "free" consultation. I now realize that there are expenses that I hadn't considered such as the $25.00/week it costs me to do laundry. Just wondering what would happen if my income vs. expenses were too close to zero. I can't file chapter 7 because I filed 7 years ago so I don't qualify. I just don't want to get into a situation where I'm expensing myself out of a chapter 13 because there are no other alternatives. I also don't want to pay more than I need to either.

[lrprn]

Is there a minumum amount that they look at to qualify for a chapter 13?

There's some variation between local courts, but in general if you are projected to have less than $6000 in disposable income over the next five years (about $100/month), chances are excellent you can file Ch 7. If you are projected to have more than $10,000 in disposable income over the next five years (about$160/month), most courts will say you have sufficient DMI to file Ch 13.

It's the gray area between $6000 and $10000 DMI that the Schedules I minus J often determine if you have sufficient disposable income to support a Ch 13 plan. In most cases, if your disposable income over five years is greater than 25 percent of your unsecured, non-priority debts, that's generally equivalent to having more than $10,000 in disposable income and being able to (or being forced to) file Ch 13.

[Guest123]

If you don't qualify or can't file for a ch7 and can't pay your secured in a ch13 you will not be able to file. You have to be able to fund the ch13 and pay all secured creditors/trustee/lawyer.

[Pandora]

I can't file chapter 7 because I filed 7 years ago so I don't qualify.

Is there any reason why you cant wait it out until you can file CH. 7 again? You dont want to be stuck in a Ch. 13 for 3-5 years if you cant pay the necessary expenses currently....

[mountanddo]

Is there any reason why you cant wait it out until you can file CH. 7 again? You dont want to be stuck in a Ch. 13 for 3-5 years if you cant pay the necessary expenses currently....

Because I received a Summons two weeks ago and am facing my wages being garnished at $550/month. Since a chapter 13 is only going to be $150/month this seems like a much better option. I would never be able to live if they garnished 25% of my wages. If I knew more about the law and how to navigate the system I might try and hold off for a year. Since I spent the money and do owe it I feel my only option is the chapter 13.