Chapter 13 Financial Requirements

Yes I was wondering what the requirements were to file for Bankruptcy if there is any. Between me and my wife we make about 65k a year total debt is around 134000 its all in my name so Im the one that would be filing for the chapter 13. My salary is around 43,000 a year the problem is we have 3 kids and trying to pay everything is taking its toll not to mention I have 2 credit cards totaling about 17,000 that I havent paid on since feb due to medical problems that arrose etc. and will probably be getting sued soon. What do you all think?

You need to qualify the bankruptcy means test. If your present monthly income is lower than state median income then the repayment plan would be for three years, if not ordered otherwise by the court and if it is greater then the repayment plan would be for five years. Along with the income requirement the other criteria that you need to satisfy are,

Your total unsecured debt mustn't exceed $336,900. The limit for secured debt is $1,010,650.

You are required to participate in a mandatory credit conselling from an approved credit counsellor 180 days prior to filing bk.

You can't file bankruptcy within 180 days of dismissing previous bk.

You may need to contact a bk lawyer to help you with filing. Most of them would do the first counselling free of cost.

Ok thanks for the help. Im going to try and talk with a lawyer sometime this week or next and get the credit couseling out of the way. This whole idea of bankruptcy is new to me so I will have alot of questions going through it. At first I was thinking about debt settlement for the couple medical bills and Credit Cards but after thinking about it if they offered a settlement there is no way i could pay it so this is my other option.

Well Im set up to see a lawyer Monday morning hopefully all will go well. Im working on getting my pay stubs and income taxes together now. Thanks everyone for your help so far.

Well my lawyer has now filed by case and got my case number etc. so now im on the way to healing hopefully. The payments are going to be a little tight but I think we can swing it. Feels like a big weight has been lifted off my shoulders.

Well, things have started rolling. Good for you.

Thanks SC you guys and gals around here have been a great help. Im just wanting to get this debt stuff behind me as quick as possible. I havent asked my lawyer but is there a way you can make extra payments if you get extra money and complete it early?

Cpalm,

I'm sure you'd get it clarified from your lawyer. But if you have larger income the trustees would make sure that you pay larger portion to the unsecured creditors. However, the duration of the program would remain the same. If your income changes during ch 13, you're required to inform the trustees to get the payments adjusted accordingly.

Now if you have a windfall, you better save the money for future. If you face problem in making payment at a future date, the extra payment wouldn't get counted then. So it wouldn't be beneficial for you to put extra money towards it.

However, I'm not a lawyer, so take my advice with a pinch of salt.