Why file Chapter 13?

• You need to save your house,
• You want to save your vehicle.
• You must resolve your tax debt,
• You have more income than needed for filing Chapter 7.

If you want to file for Chapter 13, you will need to show your bankruptcy documents to prove that you can afford to pay the amount required by the bankruptcy code over the course of 60 months.

What goes into a Chapter 13 plan payment?

All of your property-related secured debt at the current bankruptcy interest rate,
Liens on household goods can be made unsecured,
The fees of the trustee,
Tax liens value along with current interest,
Priority debt (includes tax assessment and child support in the previous 3 years)
The fees of Attorney,
Judgments impairing homestead exemption may be rendered un-secure,
Unsecured creditors will receive at least 1%. (not related to property)

The Trustee's duty is to maximize this percentage.
If you hold on to a "luxury item" or own property above the exemptions, it will escalate.
If a complete Means Test examination reveals that you have "disposable income," you may be eligible for an increase. (To arrange a time for an in-depth discussion of the Means Test with attorney Malinda M. Pennington, please contact 844-322-6932.)

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In Chapter 13, the trustee is obligated under the Bankruptcy Code to distribute "disposable income" to the debtor's unsecured creditors. You will be obliged to adhere to it if your income requires filing under Chapter 3.1

The "disposable income" is determined through Form B22C (the "Means Test").

The Means Test examines your income, family size, actual expenses, and a set of benchmark national and standardized expenses. The trustee uses these variables to estimate your monthly surplus and disposable income for the following sixty months. The "base" of your plan is your disposable income over the course of sixty months. As the name implies, the base is the sum that must be paid by the Chapter 13 plan.

Expenses allowed in the means test:

• https://www.justice.gov/ust/means-testing
• Line by line explanation of the Chapter 7 Means Test
• Line by line explanation of the Chapter 13 Means Test
• To see the Chapter 7 Means Test form, click here.
• To see the Chapter 13 Means Test form, click here.

Chapter 13 is for individuals with unsecured debts less than $336,900 and noncontingent, liquidated, secured debts of less that $1,010,650.

Business Reorganization and High-Debt Individuals

Although Chapter 11 is often reserved for corporate reorganizations, certain individuals with debts in excess of Chapter 13's restrictions may be able to file Chapter 11 instead. If a Chapter 11 debtor has a viable plan of reorganization that is "reasonably within prospect," they may retain property "essential to an efficient reorganization."