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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I am comtemplating bankrupacy and am wondering what kinds of

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I am comtemplating bankrupacy and am wondering what kinds of Chapter 13 5 year payment plans the courts in Virginia are handing out these days. I make $20K a year and and owe $40 K in cedit card debt. My wife earns $120K. I would be filing for me, not for her. If I declare bankrupacy, in either a 7 or 13, must I declare ownership of a penniless company I recently formed in Delaware, which has a bank account?
How many dependents are in your household?
Customer: replied 6 years ago.
My wife earns $120K; i barely make $15K as a tutor; and close to $0 in the summer. We have a child who is 9 years old.
Given the information you provided, unless there are extraordinary expenses (usually medical), you do not qualify for a Chapter 7.
Basically, when one files a Chapter 13 bankruptcy, the payment plan is a 5-year plan during which the debtor pays all disposable income - either biweekly or monthly - to the bankruptcy trustee. "Disposable income" is income (other than child support payments received by the debtor) less amounts reasonably necessary for the maintenance or support of the debtor's household.
Even when a married debtor files on his own, the entire household income - including that of the nonfiling spouse - must be included when determining disposable income, and is used to make the Chapter 13 plan payments.
You would have to disclose the company you own, but would not have to give it up if it is worthless.
cfortunato and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.
I am uncertain as to what is considered disposable income in your answer above. With an household income of $140 K roughly what portion would be considred disposable. In particular, would dues to a country club be allowable (we paid $75K to join) We loose it if we do not pay the dues? How tight do things typically get? Our current cedit card payouts total $2,000 a month (with punititive interest rates of 20% just to pay the minimium payment. Would the court typically ask for more each month? We have not had a vacation in two years and have fallen two months behind on our mortgage.

Edited by Christina Fortunato, Esq. on 6/9/2010 at 12:36 PM EST

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