Do you get your chap 13 payment amount before you file?

[jzak423]

I'm sure that with my income I'll have to file 13. Do most attourneys give you the monthly payment plan before you file? I'm just worried that it'll won't be much lower then what some of these credit card consoling firms are charging. Also, if you don't agree to the payment, can you back out and not file?

[aa06a47]

I'm sure that with my income I'll have to file 13. Do most attourneys give you the monthly payment plan before you file? I'm just worried that it'll won't be much lower then what some of these credit card consoling firms are charging. Also, if you don't agree to the payment, can you back out and not file?

In your consulation with your lawyer, you will develop a good idea of what kind of chapter 13 payment you will make. Given you mentioned your income, you will more than likely be a 5 year plan. Yes, you can back out.

Paying the credit (debt consolidation, debt negotiation) firms is a risky venture. There are so many rip off firms out there, it is hard to find a good one. Remember, those firms work for the credit industry and also work for themselves. You are someone they are trying to get money from. They charge redicuslous fees (usually hidden) and many people find that the payments sent, very little, if any, actually goes to paying down the debt.

I think it best to outline your situation better. Attorney's can't give much financial advice on how to protect things anymore, but there may be some things you can do prior to filing to protect some of your money or put it in exempt assets. BK is a better alternative to the debt consolidation firms. If you have a little time before filing, you might be able to some pre-bk planning.

[SinkingFast]

Keep in mind, when your attny figures your Ch 13 payment, it will be based on disposable income after taking out "life expenses". CC payments are not included at all in the process. Your disposable income becomes the plan payment that will be divided up amongst your Creditors.

The Means Tests will determine whether or not you're in Ch 13. But the Means Test uses IRS and Census Bureau Standards in several areas for what you should spend on housing, utilities, food, clothes, etc.

When you go thru Schedules I and J, the attny will list your Gross income and deductions on Schedule I. The net on I should be your net monthly pay at the bottom of the page. If you get paid every 2 weeks, attnys have a way to calculate for that as well.

Schedule J is you actual expenses. Say you're allowed $950/mo for rent/mortgage and utilities where you live according on the Schedules for the Means Test. But you actually spend $1200 for rent/mortgage, $125/mo on electric, and $125/mo on gas, your real payments are the numbers used on J as the basis for your payment plan. You'll also budget in, on a monthly basis for things you pay once or twice a year. Like Renter's and Auto Insurance payments. And for things you buy thruout the year, like clothes. All those life expenses will be accounted for on Sched J.

Attnys are pretty good at figuring what the payment will be. Go to a few Consults and see what the attnys have to say. They should give you a good idea of what you could expect to pay in a Ch 13 plan payments. In general, the number your attny figures is close to, if not actually, the payment that will be confirmed by the Court.