Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
There's not a lot your attorney can do to save you from the conversion from 7 to 13 because the determination is a mathematical calculation (means test). Thus, you'll either have to convert or drop the bankruptcy all together.
If you file a 13, ALL debts are paid back over 3-5 years interest free.
If you have a pay increase, it would likely make your monthly payment increase.
If you are dismissed or convert to a 13, you will have to pay it back.
I am aware of the 3-5 year rule...I have not done the work on the 22C yet to see my duration of repayment as well as how much my monthly repayment will be.
I have read mixed information on the annual pay increases and the UST acting on them. Is the law that open to interpretation? Let's say that the aforementioned 63K has to be paid back in 5 years (1,050/month). If I pay into that 63K with more money each month, then would the time of duration shorten due to more $$$ being paid in. Another question I have is similar in concept. Will my budget get adjusted to absorb the $208 monthly payment that will go away? In other words, will be able to pay off the debt early?