Amount for 'plan'

[JBin13]

What is the name of your state? Michigan

I make a little bit over $10k more than the state median income.
On the 22C, after the IRS-allowed exemption amounts, my disposable income is basically zero.

My attorney says that the trustee will not accept a conversion to a Chapter 7 due to my income exceeding the state median income.

I am confused as to what is an acceptable amount for the five year 'plan'.

Thanks

 

[azatty]

Why are you in a Chapter 13? Means test is an either/or situation. Presumption of Chapter 7 abuse does not arise if either (a) your income is at or below state median, or (b) your disposible income is less than $100 per month. Disposible income is measured on the "means test" form B22C. So if you're at zero on form B22C, then you should have been in a Chapter 7. Moreover, 11 U.S.C. §1325(b)(2) states that "disposible income" for plan confirmation purposes is measured under 707(b)(2), which is precisely the same section from which form B22C is derived. It sounds like you never should have been in a 13.

The mere fact that your income exceeds state median does not preclude Chapter 7 relief. You will have to substantiate the expenses and prove that you are not abusing Chapter 7 bankruptcy, but the Court, not the trustee, is who makes the decision on whether you can convert.

 

[JBin13]

The only gray area in the 22C is that I am claiming ownership and operating expenses for two cars, on line #29. I am single. No one else is in the household.

Outside of the IRS-allowed exemptions, I am claiming a mortgage, health insurance, cell phone and internet usage ($75), and the two cars.

 

[azatty]

You only have to pay "disposible income" into the plan to get it confirmed. Disposible income is whatever you have left after doing the B22C analysis. If you have a "gray area" expense like a second car, you might need to surrender the vehicle and dedicate the operating expense toward the Plan payment. Check with your lawyer.