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  1. #1
    Join Date
    Dec 2007
    Posts
    5

    Default Life During Chapter 13 Bankruptcy

    Looking to file Ch. 13 and needed some input on a couple issues.

    As I understand it Ch. 13 Bankruptcy takes into account all your expenses and anything remaining above that is paid to your creditors, correct? If so what are you supposed to do for things like kids birthdays and things that aren't "regular" expenses that come up.

    How hard is it to rent a place under ch. 13?

    Typically how long from the time you initially file does it take before you go into repayment?

    Are there any calculators on the net that helps estimate what your payment plan might be like?

    Thanks for any help,
    Michael

  2. #2
    Join Date
    Jan 2008
    Location
    Alabama
    Posts
    114

    Default Re: Life During Chapter 13 Bankruptcy

    I'll try to offer some insight:

    As I understand it Ch. 13 Bankruptcy takes into account all your expenses and anything remaining above that is paid to your creditors, correct? If so what are you supposed to do for things like kids birthdays and things that aren't "regular" expenses that come up.
    Not exactly. You are allowed reasonable expenses for many categories such as housing, utilities, transportation, food, clothing, medical & dental, etc. The allowable amount for these expenses depends on your family size and is usually compared to national standards which I believe are available through the IRS website, or you can go here: http://www.usdoj.gov/ust/eo/bapcpa/2...anstesting.htm
    However, just because you may be allowed that much in expenses does not mean your payment will be adjusted to match the difference between your income and expenses. Unfortunately the Court and your creditors are typically not concerned with you being able to afford gifts and extra expenses. Each Chapter 13 plan is different, and the payments are not always calculated the same way in each plan. I will address this below.
    How hard is it to rent a place under ch. 13?
    This depends entirely upon the place you are trying to rent from. Some do not want to rent with anyone involved in a Bankruptcy, some will check your credit and deny you based on poor rating, and then some will be happy to lease to you providing you can pay the deposit, rent, etc. Most people find that they have to search around a bit more to find someone who will rent, but I never had a client tell me they could not rent anywhere.
    Typically how long from the time you initially file does it take before you go into repayment?
    Your first payment could technically be due right after you file, however what I saw most often was the Trustee here expecting payments to begin within 30 days of file date. It may be different where you live though so this is a good question to ask your attorney up front.
    Are there any calculators on the net that helps estimate what your payment plan might be like?
    Not that I'm aware of, you see the payments are calculated based on a number of things, one being the amount of non-exempt equity you have in personal and real property, another being your CMI as determined on Form B22C, then they consider the amount of unsecured debt that you have, as well as things like if you have paid back a family member or friend within a year of filling, if you have transferred assets, sold something for less than FMV, etc. Again each case is different so there is not one set way to figure up an approximate payment. Go ahead and find an attorney who offers a no obligation free consultation and ask all these questions. The attorney should be able to identify any potential issues in your situation and very possibly could give you a very rough estimate of what your monthly payment might be.
    Good luck!

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