new guy with questions

[lotsodebt]

Hello All

I am thinking of chapter 13 as I cannot keep up with all of my payments to unsecured debt.
I have done a ton of reading and have scheduled appointments with 3 lawyers this week.
I have 100K + of unsecured debt
I am living away from the house that I own while working out of town,probably for the next 4 years at a minimum, I am renting an apartment to live in out of town
I have a 200k mortgage on the house and it is worth about 250K
I have 2 vehicles one owned out right, worth about 10K and the other is worth about 24K and has a 14k loan on it
I am current on both the mortgage, car loan, and rent, utilities
I am behind on all of the unsecured
I own an ATV free and clear with about 4K in value
The house I own and my apartment are both in PA about 220 miles apart.

here are the questions :

1. I am renting the house out while I'm gone to cover the cost of the mortgage payments alone, will I be allowed to make the payments for taxes and insurance, approx $600 a month while in the chapter 13 plan ?

2. I have an approved offer in compromise with the IRS,they have a lien on my house for the amount owed, does the lien eat up any of the equity I would have to pay back on the house if I keep it ? owed can it be included and paid off under the chapter 13 ,OIC and lien are approx 30K

3. I gave my motorcycle to a friend about 8 months ago to cover a loan, we only claimed $1000 value when we transferred it, it was worth 6k, I owed him 5k we called it even, I want to disclose the asset transfer to the court, will I have to get the bike back and give it to the trustee to be sold or can I pay its value off in the 13 plan ?

Thank you in advance for any help with my questions

[AngelinaCatHub]

Wow, Ok, I'll try. I'm not a 13 Guru but here goes: In 13 you will pay all off or an equal amount to unsecured. The IRS is always priority. That will go. I don't know if your state has homestead laws but if so, at least stay in that house over night each quarter as your homestead. The cars would probably be yours as a 13 is not a liquidation as a 7 is. I don't think anything would be sold. Your bike is a long time ago and the debt paid. Forget about that. I hope that gives you a start. Others will pop in and correct me or add to your answers. 'Hub

[keepsmiling]

Hi lots, welcome to the forum.
So if you are in PA, why does it say NY on your state? May be confusing to those trying to answer as exemptions vary from state to state.
You may not have enough exemptions to cover all of your vehicles and may have to give some of them up or pay back their value.

[SMinGA2]

Worst case scenario in a ch. 13, if you have non-exempt assets, is you pay at least that much (value of non-exempt items) into the plan to unsecured creditors. I don't know if that would include the IRS or be in addition to the IRS.

Details that matter: is the home solely in your name, or owned jointly with another? How is it titled? Would you be filing joint or single? (Joint usually means you can double exemptions.) PA allows you to choose federal or state exemptions. You do have equity in items - but may not be able to claim the homestead exemption if you don't live there. In that case, using federal and the wildcard may be best. Also getting a good idea of the real value of the house. Many people think their home is worth more than it is - and in this case, that could be good for you. If you can't exempt it, then you may have a minimum to pay in to unsecured of the $50k home equity and about $10k car equity. The sold motorcycle might add another $5k to the minimum - though your attorney will guide you on that one.

Have you started to assess your income/expenses to see where your DMI stands? By renting out your home, you're losing $600 a month from what you indicated. (Rent covers mortgage, you cover taxes & insurance.) That could pose a problem for a trustee, but if you propose a plan that is paying back a large part of your debt - then perhaps the trustee won't mind so much.

[lotsodebt]

Thank you for all of the responses. I met with all 3 lawyers this week, I have chosen one and have the ball rolling, I need ot gather a ton of paper work this and next week so we can se where I stand. The Lawyer said that the trustee shouldn't have a problem with the taxes and insurance being paid, the motorcycle will be paid of 5k in value as well, it looks like I'll be paying about $1000 a month to him ... I'll know for sure once the paper work is completed