Do I get to keep any of my disposable income if I file for a chapter 13 bankruptcy? - Bankruptcy Law Questions and Answers- LawQA.com

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Do I get to keep any of my disposable income if I file for a chapter 13 bankruptcy?

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.

Answer By David VanDyke
Bird & VanDyke, Inc.
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Your question is to broad to answer with any specificity. However the chapter 13 scheme provides for your monthly living expenses.

Answer Applies to: California
Replied: 9/23/2011

Answer By Melissa Hoffman
AyerHoffman, LLP
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When determining the appropriate Chapter 13 Plan Amount, standard living expenses are figured in, including housing, food, utilities, transportation costs, any secured debts that you will continue to pay while in bankruptcy and other debts that may need to be paid in full before the end of your plan.

Answer Applies to: Massachusetts
Replied: 9/22/2011

Answer By Bill Zurinskas
Bankruptcy Law Center
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In chapter 13 bankruptcy, the monthly disposable income goes to the chapter 13 trustee.

Answer Applies to: Colorado
Replied: 9/22/2011

Bankruptcy Law office of Bill Rubendall
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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.

Answer Applies to: California
Replied: 9/21/2011

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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The court will set the budget, and it is tight. You need a competent lawyer to evaluate your income for the last 6 months to determine what you have to pay. Often it is less that what you are paying now.

Answer Applies to: California
Replied: 9/21/2011

Answer By Darren Aronow
The Law Office of Darren Aronow, PC
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If you are filing a 100% plan, then you can keep your disposable income. However, if you are filing for less than 100% re payment of debts, then the trustee can take any disposable income that he deems fit. You should consult your attorney to see how much disposable income you truly have. It often is less than you think.

Answer Applies to: New York
Replied: 9/21/2011

Ashman Law Office
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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.

Answer Applies to: Georgia
Replied: 9/20/2011

Answer By Kevin Heupel
Heupel Law
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The idea behind Chapter 13 is that all of your disposable income goes towards your unsecured debt. However, in calculating your disposable income there is an allowance to cover all of your basic needs such as food, gas, utilities, medical, etc. Thus, you typically have enough money to live on while you are in an active Chapter 13 plan.

Answer Applies to: Colorado
Replied: 9/20/2011

Answer By Dan Wilson
Dan Wilson Bankruptcy
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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.

Answer Applies to: Colorado
Replied: 9/20/2011

Answer By Harry L Styron
Law Office of Harry L Styron
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Your question implies you have the wrong idea about what is disposable income. For a Chapter 13 bankruptcy it is your gross income, less taxes, less payments on secured debt (houses, cars and such) less your ordinary living expenses (utilities, food, clothing, maintenance, charitable contributions, etc.). Whatever is left over after you figure all that out is "disposable income" for Chapter 13 purposes. See Bankruptcy Schedules I and J (which you can find on line by Googling) for a complete rundown.

Answer Applies to: California
Replied: 9/20/2011

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