We are seniors on social security with some huge unsecured debt(31000), won't go into the gory details but most of it is within the last 12 to 18 months with a couple of 5 year personal loans that only have 6 payments made. The interest is horrible and although we are treading water and making all payments we have to reuse some by the end of the month so we are going nowhere and it will cost us a lot if we ever mange to pay it all. We consulted with a BK attorney, have to do chapter 13 as did a 7-- 5 and 1/2 years ago. I feel uneasy about the recent loans and small purchases recently on cards but he seems to think no problem, any one have experience with this? We would have a chapter 13 with only paying his and the trustee fees for 36 months. When filling schedule J out I show we have more disposable income than the 200 we may pay but how do you allow for dental, medical which typically can be high for seniors, we rent, what about a rent increase, an expensive car repair, how do you build that in so that you can survive the 36 months? Anyone out there, how did you do figure schedule J?
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Wait a minute. Is your only source of income Social Security? Do you have any non-exempt assets you need to protect?
While your actual question should be answered by your attny, in the 4th Circuit you are not required to devote SS to fund a Plan. See:
Start on page 20 of the Opinion.
This means, that while you can offer to utilize all SS on Schedule I, if doing so causes the Plan payment to be too high, you should be able to reduce the voluntary SS contribution.
Des.
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