Chapter 13 Plan Feasibility Question

[UpsideDownMI]

I am filing chapter 13 pro se within the next few days. I have all my schedules complete and am almost done with my plan. I would like some opinions as to the feasibility of my plan. My plan includes my mortgage payment, mortgage arrears (1 month), and car payment (6 months before paid). I included my car payment inside my plan so that after it is paid off that money will go to my unsecured creditors. I will be in a 3-year plan and plan on stucking with my car for the length of my plan.

My plan will give 10k to my unsecured creditors, but they will not receive any money until my car is paid off. My feasibility question is in regards to how my secured creditors and the trustee are paid in the plan. At the beginning of my plan, my payment may not be enough to cover my trustee fee, mortgage payment, mortgage arrears, and car payment on a monthly basis. Couple this with the fact that I am paid bi-weekly, the result is that my account would be negative $200 until my car is paid off.

Like I stated above, the end result of my plan as shown on my worksheet shows that I have 10K remaining for my unsecured creditors. Does this initiall negative monthly issue matter or is it the end result that matters? If it does matter, I could modify my car loan to extend over more months, allowing the trustee fee and my secured creditors to be paid as planned each month from the beginning.

Sorry if it looks like I am rambling, I just want to get this done and this is my only hang up.

Thanks!

[justbroke]

You need to make sure you're not paying more than you make. You do have to service your secured debt, but you could reduce the car payment in the initial months to something that is at least "adequate protection". I actually scheduled my Plan so that the car(s) weren't being paid until month 5.

[UpsideDownMI]

Thanks for the response. Since I am paid bi-weekly do I have to look at how many pay periods I have each month when validating that my secureds are paid each month? Or should I just my income prorated monthly as listed on schedule j?

[justbroke]

I don't have a real good answer for you. If you are paid bi-weekly, then you receive 26 paychecks per year. If your pay is consistent, then you'll probably want to take your bi-weekly amount and multiply by 26, then divide by 12 to get your monthly amount. Make sure that's enough to cover your payments.

[UpsideDownMI]

Thanks again! I listed my car as modified and spread the balance over the first 10 months post confirmation. This will allow me to service all of my secured payments immediately.