trying to decide
I make too much money for chp 7, and I'm afraid they're going to say I make too much for 13??
I have over 60k in credit and person loan.
and 125k in student loans
I make 6250/month gross
I don't own a home and have no assets. I have a car worth about 9k, still making payments.
I'm in the process of getting my paperwork together and making my first payment to the lawyer.
If I get everything turned in and such and they don't accept my bk, do I get refunded the fees I paid? I guess that's a question for the lawyer.
What are the chances of that happening?
thanks!
Your attorney should have been able to answer all these question
Your attorney should have been able to answer all these questions. Hopefully he has told you that your student loans are NOT dischargeable...if included in the chapter 13, payments will be applied but when your bankrutpcy is discharged, your accrued interest will be updated and the loan accelerated.
Quote: I'm curious to know how the bk court determines what you
Quote:
I'm curious to know how the bk court determines what you can pay for a chp 13. |
You fill out a budget (Schedule I and J). You look at your monthly income minus your "allowed" monthly living expenses. In general, whatever is left over at the end of the month is your Plan payment. This is know as "disposable monthly income".
Quote:
I'm afraid they're going to say I make too much for 13?? |
No such thing as making too much money for a 13.
If your disposable monthly income is that high you will have a 100% repayment plan. Once all "allowed" claims are paid in full your case will end. However, with $125k in student loans it is unlikely that you will pay 100% of all claims. Therefore, you will simply devote your "disposable monthly income" for a period of 60 months. Once the last payment is made you will get a discharge. Unless you obtain a separate finding that the student loans are subject to discharge (hardship), they will survive the bk.
Quote:
If I get everything turned in and such and they don't accept my bk, do I get refunded the fees I paid? |
Again, your 13 will not be rejected. It is just a matter of what you will pay each month. If you fail to follow through you would have to look at your fee agreement to determine if you get any $$ back.
Des.
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It's too bad you don't qualify to file Chapter 7 bankruptcy beca
It's too bad you don't qualify to file Chapter 7 bankruptcy because you don't own any property. The bad thing about filing bankruptcy in your situation is the student loans cannot be included in the discharge. You will qualify to file Chapter 13 is just a matter of how much you will have to pay back. The good thing is the student loans will be a priority debt on your Chapter 13 bankruptcy repayment plan. That leaves less left over to pay the unsecured creditors. Your bankruptcy attorney should come out with a feasible repayment plan to submit to the bankruptcy court. If you're having trouble making the payments that are set up then make sure to call your bankruptcy attorney and let them know, don't get behind as it might end up in dismissal. Then all that money and time you put in went to waste. Good luck