Chapter 13 question

[mdg80]

Jurisdiction

Oklahoma

I am doing research on filing chapter 13 and can't find clear answers on a few questions. I am not at the point of hiring a lawyer yet but want to see if it is feasible.

I make over the median income level for my state so it says I have to do a 60 month payment plan. But is also says that they take all my disposable income to pay back the creditors. This will be a 100% plan due to income.

If I have enough disposable income to pay it back faster than 60 months will the stretch it the whole 60 months or shorten it to 36 months?

If I show enough income can the shorten is lower than 36 months?

 

[Tax Counsel]

The longest period for a Chapter 13 plan is 60 months. But if you can pay off the entire debt before that, the court may enter an order for a shorter plan. If you can pay all your debts in less than three years you might be able to negotiate payment arrangements with each of your creditors that accomplishes the same thing without filing for bankruptcy. That, of course, depends on the attitude of your creditors.

 

[mdg80]

The longest period for a Chapter 13 plan is 60 months. But if you can pay off the entire debt before that, the court may enter an order for a shorter plan. If you can pay all your debts in less than three years you might be able to negotiate payment arrangements with each of your creditors that accomplishes the same thing without filing for bankruptcy. That, of course, depends on the attitude of your creditors.

Thank you for your response. The reason I ask is I can't afford less than 36 months but my previous 6 months income says I can. I took a big pay cut at the first of the year, which is the reason for the chapter 13.

I show income of $12850 per month gross using the last 6 months income. After pay cut my actual income is $11850 per month. After filling out the 122c-2 form to see where I'm at, I come
up with $3100 disposal income with going off the 6 month calculation and $2100 going off my actual income after the pay cut.

I have $65k in unsecured debt and current on all debt including car house and taxes. At 36 months with trustee fees and attorney fees it would take the whole $2100 in disposable income I actually have under my current income.

So as long as they can't force me shorter than 36 months I can file now and cover the payments. If they can make me do shorter time and use my 6-month income as of now then i will have to wait 5 months to get my 6 month income down to the actual amount.