Figuring payment

[911mom]

I'm going to speak with the attny to file and do paperwork Friday...they will figure everything and give me the payment and if it's not right for me, and I can't afford it, they will refund my money, which is great! My ? is, the rough draft on looking at my numbers estimated my payment at around $900 a month...but they are using my gross income, and not my net take home pay, which is quite a bit different!! If I add living expenses up and subtract from my avg take home pay, I only have about 20$ left every month! They used my gross and came up with an extra 750-900$ a month! How can they use gross income when it's not an acurate picture of my actual finances every month? Just doesn't seem right...I'm meeting with another attny for consultation, and the paperwork they sent me to fill out asks for TAKE HOME PAY, not gross...this interested me right away...thoughts or comments please?? hope everyone has a great day!

[newbie2]

I'm going to speak with the attny to file and do paperwork Friday...they will figure everything and give me the payment and if it's not right for me, and I can't afford it, they will refund my money, which is great! My ? is, the rough draft on looking at my numbers estimated my payment at around $900 a month...but they are using my gross income, and not my net take home pay, which is quite a bit different!! If I add living expenses up and subtract from my avg take home pay, I only have about 20$ left every month! They used my gross and came up with an extra 750-900$ a month! How can they use gross income when it's not an acurate picture of my actual finances every month? Just doesn't seem right...I'm meeting with another attny for consultation, and the paperwork they sent me to fill out asks for TAKE HOME PAY, not gross...this interested me right away...thoughts or comments please?? hope everyone has a great day!

They have to use your gross income. Make sure though that the items that are deducted from your paycheck (taxes, health insurance, etc) are accounted for in the schedules. (That is how they get to the net income)

[momofthree]

Ditto the above, they use the gross and subtract out the deductions. Be aware that if you usually receive a large tax refund each year, that can really impact your plan payment. You should be having the exact amount taken out of your check that allows you to break even at tax time (not receive a refund and not owe).

[nsupanda]

I'm going to speak with the attny to file and do paperwork Friday...they will figure everything and give me the payment and if it's not right for me, and I can't afford it, they will refund my money, which is great!

You'll be able to afford it if they did it accurately. Not saying you might have to make spending cuts here and there. Lord knows I did!

Pre-filing, my budget allowed for the bk payment to be about $500. I was in tears when my attorney told me my payment would be $1430.

We've been paying $1430 every month since May and it's worked out fine. It's a real shock at first, but you will be able to afford it.

[mountanddo]

You'll be able to afford it if they did it accurately. Not saying you might have to make spending cuts here and there. Lord knows I did!

Pre-filing, my budget allowed for the bk payment to be about $500. I was in tears when my attorney told me my payment would be $1430.

We've been paying $1430 every month since May and it's worked out fine. It's a real shock at first, but you will be able to afford it.

Well, I have to disagree with this a little. I have to file C-13 because I filed C-7 less than 8 years ago and I can't file again yet. Because I am being sued I have to file the C-13 before they start to garnish my wages 25%. If I really put down what they allow, like including health insurance and other allowances I'd qualify for C-7 easily. So in order for me to have some DMI I have to under estimate what my expenses really are. So while on paper I have $150 DMI, in reality I really don't but it's better than being garnished $550/month. I wonder what the lowest DMI would be to be able to qualify for C-13. I don't know what the caculation on that is. I'd like to get it less than $150 if I could because right now the minimal expenses I have + the $150 is going to be tough. It leaves NOTHING for emergencies at all. I could just eat raman but without health insurance I proabably should eat a few veggies now and again.

[keepsmiling]

Well, I have to disagree with this a little. I have to file C-13 because I filed C-7 less than 8 years ago and I can't file again yet. Because I am being sued I have to file the C-13 before they start to garnish my wages 25%. If I really put down what they allow, like including health insurance and other allowances I'd qualify for C-7 easily. So in order for me to have some DMI I have to under estimate what my expenses really are. So while on paper I have $150 DMI, in reality I really don't but it's better than being garnished $550/month. I wonder what the lowest DMI would be to be able to qualify for C-13. I don't know what the caculation on that is. I'd like to get it less than $150 if I could because right now the minimal expenses I have + the $150 is going to be tough. It leaves NOTHING for emergencies at all. I could just eat raman but without health insurance I proabably should eat a few veggies now and again.

Mountain, just checking: is it safe to assume all of your debt is unsecured?

[mountanddo]

Mountain, just checking: is it safe to assume all of your debt is unsecured?

Yes, it is.

[LadyInTheRed]

So, in light of mountanddo's point, nsupanda's statement could be modified to say

You'll be able to afford it if they did it accurately, unless you would qualify for a 7 but are filing a Chap 13 to keep assets you really can't afford or can't file 7 because you had another BK discharged too recently. Not saying you might have to make spending cuts here and there. Lord knows I did!

A competent attorney should get you into a plan that is affordable as long as you are willing to make any necessary changes to your spending habits.