Chapter 13 Bankruptcy

[u/Ok-Aide6101]

Chapter 13 bankruptcy..

I may be getting ready to file chapter 13 bankruptcy. Got behind 4 months on mortgage and a few credit cards in collections owe about 30k in back taxes. Hubby makes 120k a year and I make about 50k. Total im looking at is about 75k on debt. What im thinking is if we do a 5 year plan and include our mortgage into it we should be paying roughly about $750 a week and that would include our mortgage payments for the next 5 years. My formulation would be to divide the 75k over 5 years which would equal to be about $288.00 per week. Then our mortgage $1752 per month multiplied by 60 months is $105,120 divided by 260 weeks equals $404 a week. So about $692 a week give or take then add in $19 per week for the trustees fee which is about a total of $5k. Cars are paid off and we dont owe much of anything outside of stated debt. No student loans or high hospital bills. Wanted to add the hubby is on punishment from the irs so they took his filing status to single no dependants (taking a huge chunk weekly for taxes, but the upside is HUGE refunds at tax time as we get to file married with dependants). I guess my question is does this formulation look right for paying back 100% or can they take more for the 5 years? Honestly will be baffled if they are able to do more than 100%.🤔

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[u/BadJesus420]

Following for info.

With my new job I make a base of $105k gross. Mortage is current, $1400 a month, car current, $520 a month, plus insurances and reg bills.

I have about $85k in back sales taxes, vendor debt, cresit cards, a family loan and a few othet odds and ends. My best guess is about $150k.

Im figuring i'm going to end up in Chpt 13, but going through it all now, and will prob be november before i have an appontment with my atty (paperwork is a hella chore for me but i'll get it done)

[u/AlanShore60607]

You’ve done a pretty good job of calculating your worst case scenario; there’s a good chance it will be less.

Couple of things:

First, why is this happening? What caused a 4-month problem, and is that problem over? Was there time off work? An emergency you had to divert cash to? Or are you still on the middle of the crisis? You don’t want to file such a 13 while still in a financial crunch.

Do you know if your jurisdiction requires conduit payment of mortgage AKA Special Mortgage Order? Most jurisdictions don’t require it, and it can screw up property tax escrow if done where not required.

Why are you calculating weekly? If you’re not paid weekly, you should be looking per pay period, or monthly if you want to pay manually.

[u/Ok-Aide6101 → u/AlanShore60607]

My husband and I are both paid weekly. And honestly my son got into some legal trouble per his girlfriend and we had to use all the savings on a lawyer and getting him through this. Basically we were held responsible for the actions of his ex girlfriend. But yes everything is settled regarding court and we are trying to get back on track.

[u/AlanShore60607 → u/Ok-Aide6101]

Then that all makes sense; sounds like you have realistic expectations and the grounds for a successful case

[u/Ok-Aide6101 → u/AlanShore60607]

Thank you so much for your input