Well we got the #'s from the attorney AND.............

[jcsawyer]

YES we can actually afford it and be happy about it! The only thing is.........I have to surrender my mazda 3 BUT............since a family member owns a car dealership he can find out the auction it will be at and my grandparents agreed to buy it back free and clear for me !!!! I am super excited to start this new chapter and get the ball rolling! OH and our 2nd Mortgage is getting STRIPED!!!!!!!!!! I don't think I have ever been so relieved in my life! I actually SLEPT last night for once in three years not having to worry about the burden of BOA!

Heres what the breakdown of it all was:

Payments into Plan
Monthly Payment Number of Months
$1,587.42................... 60

Summary of Payout
Attorney & Filing Fee.................2,255.00
Trustee's Fee...........................9,524.40
Principal to Creditors.................44,250.26
Interest to Creditors.................39,215.54
Over Payments........................0.00
Total Plan Payments.................95,245.20
60 Month Plan 1% for unsecured, non-priority

SCHEDULE I - CURRENT INCOME OF INDIVIDUAL DEBTOR(S)
Combined Monthly Income:......................$3462.00
Avg. Monthly Expenses:..........................$1839.47
Other Utilities/Expenditures:....................$353.47
Atty Fees:...........................................$2 255.00 Paid month 1-4
Secured Long Term in Plan:.....................$93493.34 Total Payout: $46091.40 Paid month:1-60
Arrearage Paid Prorata:..........................$24480.81 Paid month:4-58
Secured Paid prorata:............................$6832.41 Total Payout: $10927.58 Paid month: 4-58
Unsecured Priority:................................$1212.52 Total Payout: $1567.03 Paid month: 58-60
Unsecured General Non-priority:...............$39865.43 Total Payout: 398.98 Paid month: 60
Secured Avoid lien:................................$75000
Not In Plan:..........................................$25 891.78
Secured Surrender Property:....................$10500

Plan Summary by Creditor Classification
Total property value:...............................$268,246.77
Less:
Schedule D. Secured Claims:.....................$210,306.56
Schedule C. Exemptions:..........................$ 12,359.77
----------------
Interest in Nonexempt Property:.................$45,580.44
Less:
Schedule E. Priority Claims:........................$ 1,212.52
Administrative Costs:................................$ 0.00
----------------
Available to General Unsecured:..................$ 44,367.92
Total General Unsecured:...........................$ 39,865.43
Percent Distribution:................................. 100.0%
Details:
Property from Schedule A:.........................$232,200.00
Property from Schedule B:..........................$ 36,046.77

[flowerchild]

Congrats on your plan and your first night's sleep in ages

The best thing that could happen is that you have an affordable payment that you are happy with. And getting that second stripped is HUGE! So congrats and good luck on your journey.

[HHM]

Refresh my memory, why are you filing chapter 13. Based on those numbers, it appears you are devoting more than half your income to the chapter 13 plan....why? On the surface that is insane? Or is your "regular" mortgage payment getting paid IN the chapter 13?

Also, the math doesn't quite add up, combined income is $3462, and expenses are 1839.47 and 353.47, if you subtract, that only leaves $1,269.06, not $1,587.42. So how is that "affordable"

Just saying....

This plan seems completely fanciful to me unless you have left off some information about income.

You don't mention your household size, but on $41,544 per year, if you are anything more than an HH-1, you qualify for chapter 7.

[Pandora]

sounds like your attorney set you up to fail ...how a trustee would approve based on income number is beyond me. Agree with HHM....

Something doesnt add up

[jcsawyer]

We are a 4 person household our house is included in that payment and we got a 2nd strip. I make 596 a month and we get 526 a month in gov't assistance. I applied for disability since i am 100% disabled. We did this to save our home from foreclosure. The payment we would pay the trustee we pay him less than our monthly expenditures without bankruptcy so this actually saves us alot given it writes off our 2nd which is 23k and my car which is almost 14k. Nothing to fail at since we are able to lower our payments our insurance alone dropped in half.

Saying we are set to fail is wrong with that amount we will be able to save money for once!

[Pandora]

If you're receiving SSD then it doesnt count in the means test, however they would count in your Schedules; as far as gov't assistance, i'm not sure if they count that or not on means test.

With a family of 4 and an income of what you have coming in - I hate to say it, but...honestly, you're set to fail. Even with stripping your 2nd and returning your car - you still are in the red from a Ch.13 to income ratio.

Trying to grasp why your attorney would even consider doing a 13 - reading back through your posts. Ch. 13 isnt meant to be punitive - you should be able to pay for all the necessary things under the IRS standards, and it appears you dont have everything budgeted in.

Think long and hard before you sign and submit. Are your mortgage arrears included in the above? if they're taking your car, what are you to do for transportation?

[HHM]

Right now, I don't blame the attorney on this one, I think their are some unrealistic goals at work here.

First, what is your 1st mortgage payment? Just to clarify, the $3462.00 income number in your 1st post, that is TOTAL gross income, correct?

SSD DOES go on schedule I. (but it doesn't go on the means test), in a "save the house" chap 13 with below median debtors, the means test is irrelevant, the debtor has to show that they can feasibly afford the plan counting any "regular" income source, and that information comes from schedule I and J.

I have seen this situation a lot. The debtor wants to save the house, the attorney creates a plan that will do that. At that point, you let the debtor decide what they want to do. If they want to make a go at it, it is not the attorney's place to say no, but to simply advise. This plan can probably get confirmed (but it will be tough), but, if I were betting, the plan fails within 12 months and JC ends up surrendering the house and converting to chapter 7 (because that is what normally happens in semi-unrealistic chapter 13's, sorry to say).

What bothers me (and this may be an issue with the attorney) is the amount going to unsecured.

Available to General Unsecured:..................$ 44,367.92
Total General Unsecured:...........................$ 39,865.43
Percent Distribution:................................. 100.0%

Barring some odd situation, the unsecured creditor should receive next to nothing.

[SMinGA2]

I assumed it was not literally $39k going to 'unsecured'. At least, I don't think 'unsecured' here means credit cards and such. She indicated ~$24k in mortgage arrears and that this plan payment will include the going forward 1st mortgage payment. I suspect the bulk of the payout is going to mortgage, arrears, and the 1 car loan they are keeping.

[HHM]

I assumed it was not literally $39k going to 'unsecured'. At least, I don't think 'unsecured' here means credit cards and such. She indicated ~$24k in mortgage arrears and that this plan payment will include the going forward 1st mortgage payment. I suspect the bulk of the payout is going to mortgage, arrears, and the 1 car loan they are keeping.

Probably right.

[jcsawyer]

Sorry guys had a long day at the neurologists office. Ok I am super sorry.....the unsecured are getting 1% (what happens when you type early in the AM). Yes the bulk of the secured arrears are our home loan that we are behind.
We have three vehicles (one dodge nitro that will get paid in the bk and I will drive, one mazda 3 that will get surrendered, and one ford ranger that is paid for and my husband will drive.)
Our mortgage monthly payment is $774.19 and will be paid in the amount we pay each month to the trustee. And yes that is the TOTAL gross income until I get my SSD checks which will be another $1200 so that is why it will be affordable for us. As far as basic necessities we have those and are far from needing anything. Our power bill has been put on a budget billing so it will be at least $100 less than it has been, our vehicle insurance also will be less since I am surrendering my vehicle (it was EXPENSIVE for some reason). Our cell plan I dropped it down to $150 for all of us. Cable has been put back to standard and is $25 per month internet is the only thing I really kept up there because of downloads. We go to the park, we watch dollar movies, and if we go out anywhere we use a coupon (steak 'n shake on the weekends has free kids so it only costs us $14 for 4 people! that is rare that we go out). So we have made adjustments in order to make sure we can do what we need to for the next 5 years. If anything I have family that can and will help out if we get in a rut with something (car repairs, clothes for the kids, ect.) I use coupons to expand our food budget and shop with sales and coupons so we usually spend at most $50/wk on groceries. We have made appropriate cuts to ensure we can make it.