Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
1) The general rule of thumb is $500 per room, unless you have particularly expensive furnishings, or particularly shabby furnishings.
2) According to the US Justice Department website, which is the official source for all state medians, you are correct. Here is the website:
3) The Chapter 13 plan payment is supposed to reflect your income going forward, and can be modified with a change in income, so yes, if you can prove to the trustee that your future income will be less than in the past 6 months, then your plan payment should be less.
However, the length of the plan depends solely on the average monthly income for the 6 months prior to filing. The length of time for the plan repayment cannot be changed with a change in income.
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Your plan payment is supposed to be based on what your income will be going forward - if you can provide proof of what your income will be going forward. If not, a trustee has to approve the plan based on what the income has been before filing.
Most expenses are pre-determined amounts that, like the state medians, vary according to where the debtor lives, and are not based on the actual expenses of the debtor - unless there are special circumstances. If you listed your expenses as less than the amounts allowed for your area, or if you have special circumstances that require you to spend more than the amount(s) allowed in your area, you can amend your plan to increase your expenses.
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