QUESTION
Do I get to keep any of my disposable income if I file for a chapter 13 bankruptcy?
Asked on Sep 20th, 2011 on Bankruptcy - Georgia
More details to this question:
If I file for chapter 13 bankruptcy, do I get to keep any of my disposable income? I know you end up with a set payment plan for some of your debt, but I want to make sure I get to keep some disposable income. I still need to live.
6 ANSWERS
Bankruptcy & Debt Attorney serving Longmont, CO
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William Edward Zurinskas
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In chapter 13 bankruptcy, the monthly disposable income goes to the chapter 13 trustee.
Answered on Sep 22nd, 2011 at 12:38 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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In a chapter 13 you are required to include all disposable income into the payment plan. Disposable income is the excess of income minus ordinary monthly expenses. If you do not have disposable income you cannot file a chapter 13.
Answered on Sep 21st, 2011 at 12:31 PM
Glen Edward Ashman
As I am sure your lawyer told you (and do NOT file) without a lawyer, Chapter 13 REQUIRES you to commit 100% of your disposable income to your plan. A properly written budget and plan will leave you with income to live on. That is why you use a good lawyer.
Answered on Sep 20th, 2011 at 8:52 PM
Daniel James Wilson
The plan payment is calculated using a form called 22C. The form calculates what is called your Monthly Disposable Income. Generally, that amount is your presumptive plan payment. MDI is calculated by starting with your gross income, deducting taxes, and then deducting amounts reasonably necessary for the maintenance of the household. Most of the deductions follow IRS standardsso much for food, utilities, car operation expenses, etc. The allowances are generous enough to live on if you budget your money.
Answered on Sep 20th, 2011 at 8:01 PM
judith runyon
Not unless you have disposable income after a 100% plan.
Answered on Sep 20th, 2011 at 5:52 PM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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By definition your disposable income is income after reasonable expenses so you have money to live on after you file ch 13.
Answered on Sep 20th, 2011 at 5:41 PM