Correct me If I'm wrong?

[eltaur2000]

Things than don't matter and I hear people stressing......

Percentage paid to unsecured creditors?
% Pay back amount?
Amount of secured or unsecured debts? (Unless you make allot of money)

The only number that truly matters is your DMI because that's what your going to pay for the next 60 months.

[HHM]

Correct, % payback is almost entirely irrelevant.

The focus of chapter 13's is on budget and DMI.

[eltaur2000]

Let me get this right....

I think I'm going to love Chapter 13 my DMI is tops 600 a month.

Minimum payment (%2) on 46k of CC debt is $860
With interest I will never be debt Free

Plus Best Buy $40 and The Room Place $116 (Secured Debt)
Student Loan $200 (Wich Goes into Forberance)

I still have to pay everything else so how is this so terrible for everyone?

[LadyInTheRed]

I still have to pay everything else so how is this so terrible for everyone?

It's not terrible for everyone. Many have more money to spend after filing Chap 13 than they did when struggling to pay unsecured creditors. My plan payment is less than half what I was paying for cc payments and my 2nd mortage and it includes the payment on the car I bought a month before filing.

Most people who have trouble in a 13 are either trying to keep assets they can't afford, have major changes in income or expenses during their plan or are unwilling to make the changes necessary to live within their means. Not to say those are the only reasons, but they seem to be most common.

[eltaur2000]

I'm planning on retaining my attorney this Friday should I get a car. Will I get the additonal 500 of my DMI for having the car?

[AZNoName]

Chap13 will be a bit difficult for me because we live fairly modest. We make good money, don't have excessive payments or anything. The issue lies in the pending judgment we're looking at receiving on bad business debt (from a business we are no longer a part of, yet which we personally guaranteed.)

Our personal finances were fairly good (definately nothing to file BK over). The pending judgment forced our hand, and now we have to pay for it though a Ch13. The extra money we could save and bank before will all be going to a trustee. It will be an adjustment, but there's no real alternative.

[AZNoName]

I'm planning on retaining my attorney this Friday should I get a car. Will I get the additonal 500 of my DMI for having the car?

If you're going to buy a car, I might hold off on retaining a laywer. Talk to your atty and tell him your plans. They might have you hold off a little while longer. Is there a reason or need to rush into it?

[eltaur2000]

For some stupid reason I still feel responsible!!! My credit is still excellent and my cards are up to date and I would hate to get harrased for a while.

You know I answered my own stupid question. My cards are all about to exire for teh 0% on transfers and purchases that I made. I feel like within the next two months I'm going to get hit with a ton bricks from interesst and my 47k debt will be like 50 within 5-6 months and I could never catch up.

But I realised the amount of unsecured debt does not matter one bit. I can only pay what I can pay. So if my DMI is $100 a month that's all they will get for 60 months.

[AZNoName]

So if my DMI is $100 a month that's all they will get for 60 months.

Just remember what you think your DMI is, and what the court/attorney percieve as your DMI is could differ. I loaded all of my bank transactoins into an excel spreadsheet to see what I spend a month and on what. I figured that was a good representation of my monthly expenses. When you break out out and the attorney looks at it, some things you spend money on may not be considered allowable (or just too much). I originally thought my monthly expenses were about 5900/mo. Turns out it they figured them about $5100. I PM'ed you.

[lillymarlene]

I don't want to cut in on the OP's post, but now I'm confused. I've seen it said here several times that % payback to unsecured creditors doesn't matter.

But then last April, I found out I owed some back taxes and since it was right before my plan was confirmed, I asked my attorney if this could possibly be ammended into my plan. He said it wasn't a good idea, because with what I could pay, my unsecured creditors would get nothing.

I could be wrong. However, I interpreted that to mean that possibly in some areas (where I am anyway) the unsecured creditors have to get something even if it's very small.

[LadyInTheRed]

I don't want to cut in on the OP's post, but now I'm confused. I've seen it said here several times that % payback to unsecured creditors doesn't matter.

But then last April, I found out I owed some back taxes and since it was right before my plan was confirmed, I asked my attorney if this could possibly be ammended into my plan. He said it wasn't a good idea, because with what I could pay, my unsecured creditors would get nothing.

I could be wrong. However, I interpreted that to mean that possibly in some areas (where I am anyway) the unsecured creditors have to get something even if it's very small.

There is no requirement in the bankruptcy code that the unsecured creditors get anything unless you are keeping non-exempt assets or have enough DMI to pay them something. My understanding is that some trustees will fight you if you give nothing to unsecured creditors. But, if the issue goes to the judge to decide, the trustee has to find a valid reason to oppose your plan. 0% to unsecured creditors is not a valid reason. Some attorneys insist on giving something to unsecured creditors to avoid the fight.

[lillymarlene]

There is no requirement in the bankruptcy code that the unsecured creditors get anything unless you are keeping non-exempt assets or have enough DMI to pay them something. My understanding is that some trustees will fight you if you give nothing to unsecured creditors. But, if the issue goes to the judge to decide, the trustee has to find a valid reason to oppose your plan. 0% to unsecured creditors is not a valid reason. Some attorneys insist on giving something to unsecured creditors to avoid the fight.

O.K. Thanks, I can see what happened. At the time I filed my car was said to worth over $4,500 and my state's automobile exemption was $700. Then plus I kept part of my small business.