Disposble Income - Chap 7

[timeouts1]

I am having trouble understanding the bottom line for a Chap 7. We have some major dental work bills upcoming which will bring our healthcare expenses over that is in excess of the amount in Line 19B (the IRS standard). I have a copy of the estimate from the dentist for documentation. If we do not inlcude the dental costs then our Monthly Disposable Income is $92.83 for 707(b)(2). Does anyone think that with that amount for disposable income we would be converted to a Chapter 13. We also will have student debt loan coming due 1 year from now (we co-signed on our kids private student loans) and they will not be able to make the full payments. So in 1 year our disposable income will be negative. I appreciate any thoughts or advice.

[JRScott]

I believe the minimum to be in a Chapter 13 is around 165 dollars currently. However if your that close be ready to prove all your figures as the UST might challenge them.

I realize in this economy its going to be hard, however I'd read those student loans and make sure they weren't signature loans or personal loans, if they are those two types they can be discharged. Which means it would absolve your interest in the loan but not your child's.

[CH33 Paralegal]

any number over 0 should technically be paid into the case, and that's just regarding money going to unsecured debt.

If you were to have the student loan come due, you'd have to have a provision in your plan that shows the payment decreasing by the amount of the loan. But you'd have to figure out what your base is and how much overall would need to be paid in. then you can figure out what your payment would be for the first year before this new expense comes due and still finish on time.

Document all your medical costs. If you incur them, you incur them and it's a valid number to use as long as it's the truth. Make sure you can provide documentation for anything considerable.

[LuciluS]

Medical expenses need to be Paid before you File bankruptcy; however, you Cannot pay a Single Entity more than $600 during the 90 day period before you file, as I was reminded on this forum.

We are in the same boat. Prescriptions, alone, cost us over $500 a month and DH was in the hospital for a week in April & insurance company hasn't paid the hospital and that bill will be around $1,500. We are filing 9/09; therefore, I can only pay them less than $600. I paid $4,664 in February for dental work. I haven't totalled our medical expenses Yet.

My paper trail is the Medical Statement, The EOB from the insurance company & a copy of payment (check or page from Bank Statement) taped to the EOB.

Since 2005, we have paid between $10,000 - $15,000 each year in out of pocket medical/prescription expenses. The number is listed on our Tax Returns. I'm not worried about being over the Standard as I can prove all of our Medical expenses.

Our Disposable Income will be in the negative numbers....just don't know how much yet.

Luci