Chapter 7 vs. 13- How much would i have to live on?

[upontheventura]

What is the name of your state?NH
With Chapter 13? Is it pure torture for 3-5 years?ALL of my paychecks would be sent to trustee? I would NOT want my small company to find out! Can someone give me some basics/specifics? I am trying to prepare for the worst before my consult on 10/4. If he recommends Chapter 13... Like i have said before I am -400.00 per month- and that is without overestimating (We are talking 250 per month for food(just myself) $100.00 for entertainment and recreation, $50.00 for gifts, $300.00 a month for fuel/ car repairs. I think i am being very fair. (as in Christmas/birthdays). What worries me is this- My rent is high and my car payments are too. Rent is $1100.00 and car is $366.00. Car I planned on reaffirming. Frankly, if i lived in a dump and ditched the car I would probably be at +200.00 per month. Can the trustee say "Your rent is too high?" Or "You dont need this car" I have no titled assets but an old Saab with 245000 miles on it that sits in my driveway because it needs a tranny. No high end musical equip, elctronics- nothing. I live in New England and the rent is high. It is a 1 bedroom in a nice neighborhood. What do you guys think? Can a trustee say "You don't need an 1100.00 a month apartment" When there are apts that are $900.00 a month? By the way, my take home is about $25-2600 per month(salary and commission) I usually have $2000.00 in my bank account(s) at any given time. Another rambling message. Sorry guys.

 

[upontheventura]

By the way

My total debt (Car/Student Loans, Credit Cards) is $42,000.00

I want to reaffirm the car- That is $16000
Student Loans are around $10000
Credit cards in good standing are at about 4000- I pay the minimum. They are all pretty much maxed- 19% interest rate too.
The main reasons I have do do this are the two Charged off Providian cards from 2002. One is 8000 other is 5000. THe 8000 is heading for a lawsuit(The one that the lawyer who has sent me letters has) They are not going to settle. If I could make monthly payments WITHOUT doing Chap 13, I would. I could do maybe $100.00 a month for each one. But thats never going to be accepted. SO there is my financial data in a nutshell

 

[kopes]

I can't answer all of your questions, but I just filed for BK7 and some of your expenses may not be allowed. I was not able to claim any expenses for gifts and my lawyer told me to keep entertainment around $50 (family of 3, 2 teenagers). As for your rent, they usually look at what is normal housing costs for your area. So, if $1100 is normal for a one bedroom, then you should be fine.

 

[Ladynred]

Rent is $1100.00 and car is $366.00. Car I planned on reaffirming. Frankly, if i lived in a dump and ditched the car I would probably be at +200.00 per month. Can the trustee say "Your rent is too high?" Or "You dont need this car"

The Trustee cannot dictate where you live and how much rent you can pay. If a Trustee told me I had to move it would do several things - as it would most people: 1 - I'd pay huge penalties for breaking a lease 2 - I'd have to find the money to come up with a security deposit and the 1st months's rent (and possibly the last months' rent too !), and 3 - I'd have to scrape up the money to do the move. It costs a LOT of money to move. All that so I could go live in a place that's on the border of the 'hood and about 750 sq. ft !! So, I'm sitting in bankruptcy court and the Trustee says I pay too much rent I have to move - WHERE DO YOU GET THE MONEY TO DO THAT ?? Doesn't make much sense, does it ?

The Trustee can't dictate what you pay for your car either. What a Trustee will do is look at the car's value to determine its equity and if you can't exempt it, then the Trustee can try to take from you to sell. Ch 13 IS 3-5 years of a VERY strict budget and that is why 70% of all CH 13's fail. Expenses that are 'approved' in one district may not be tolerated in others. The only one who can tell you what will fly and how much is a bankrutpcy lawyer.

If your disposable income is $100 or less after NORMAL living expenses, then you have a good chance of getting the Ch 7. If you were putting $400 a month into a 401K (which is discretionary) and spending $300 a month on 'entertainment' a Trustee could reasonably say that you could have $650 a month in disposable income and push for a Ch 13. Doesn't sound as if that's what you're looking at, so you need to quit stressing out until you actually sit down with a BK lawyer who KNOWS what will work and what won't. You need to be sure you ASK what the break point is for the Trustees in your area.