Ch. 7 vs Ch. 13

What is the name of your state? Tennessee

After reading some of these posts I have a question or two. How much equity is too much, for either ch 7 or ch 13? What is disposable income? I gather that if mine is above 100$ I won't be able to file ch 7? How are ch 13 payments decided?

I have been paying for over 5 years and I can't seem to make any headway. I am with my second debt consolidation program and I still can't afford to put all my debt on the account. I owe about 55k and I make about 35k and that is with working two jobs. I own my car and a motorcycle, I guess I won't be able to keep one of them. Most of this debt used to be CC but is now with collection agents, some are with law firms. I have personally called everyone of of these people and got most of them to drop the interest rate to a low one or all together, but I still cannot afford to pay everyone every month. I need some opinions and advice regarding what might work best for me.
PS I haven't used credit since 99, and I have no CC's anymore. I am single with no kids.

[Ladynred]

In TN, the homestead exemption is $5,000 - so if you have equity ABOVE 5K, you may be looking at a Ch 13 to keep the house.

The $100 number for disposable income isn't a hard and fast rule. Depending on your assets vs. your debt, even a $100 left over each month may not be enough to force you into a Ch 13.

Disposable income is what you've got left after ALL your normal living expenses are paid.

Lots of factors determing 7 vs. 13. The most common forcing people into CH 13 is too much equity, too much other non-exempt assets, arrearages on a mortgage (can't be in arrears in CH 7), and then excess disposable income.

The list of exemptions for TN can be found here:
[url]http://www.thebankruptcysite.com/exemptions/tennessee.htm[/url]

Anything not on that list or of greater value than the exemptions is a problem for CH 7.

That site also has tons of information on Ch 7 and CH 13, so you might want to do some reading .

Wild Card, can that be applied to my motorcycle, if it is worth 4k or less?
And thank you so much for your help.

[Ladynred]

Yes. Wild card of 4K can be used for ANY personal property.

I also have some money in mutual funds, can I lose that for ch 7 or is that considered personal property?

[Ladynred]

That depends. If its part of a qualified retirement plan, then no. If its just cash sitting in funds, you may or may not be able to exempt it.