Hello, and thank you for contacting Just Answer.

Did you file the chapter 13 with an attorney? Have you discussed this issue with them?

Ok, just to clarify, you haven't filed at all and are just considering it? You are currently making payments to your creditors directly? What is your yearly income? Have you considered a chapter 7 instead of a chapter 13?

And how many people are currently in your family and residing with you? (1-10).

Ok, thank you for the extra information. I ask to consider whether or not you qualify for a chapter 7 bankruptcy. The first test is whether you make less than the median income for your family size, and you are over the median income for a family of 3. However, there are still ways to get in to a chapter 7, particularly if you have certain qualified expenses.

Chapter 13, on the other hand, is a good option where you can afford the payments, but often people find that the payments are higher than they expected.

If you have not spoken yet with an attorney, may I ask how you determined what your Chapter 13 payments would be?

Potential foreclosure is one reason people look at a chapter 13. The amount of a chapter 13 payment is based on what your disposable income is after all necessary bills are paid (food, utilities, etc).

The court does take in to consideration income versus debt to determine the length of the plan (between 3 and 5 years) and what your monthly payment will be.

Prior to sitting down with an attorney, you may want to review the "basics" of chapter 13 at:

http://bankruptcy.lawyers.com/consumer-bankruptcy/Chapter-13-Wage-Earner-Bankruptcy-Basics.html

All necessary expenses, not including bills to creditors such as credit cards etc.

So yes, after food is bought and utilities/housing is paid, the remaining income is what is considered under the plan.

Keep in mind that the idea behind the plan will be what you can actually pay after all necessary expenses are deducted, the court is not trying to break you.

The basic calculation is income minus necessary expenses (Again food, housing, utilities etc). Whatever is left over is basically what is available for a chapter 13 payment. Now, if you are paying for the most expensive cable package available, the court may not allow that as a necessary expense, or payments for a luxury car, etc. Ultimately, it is a fact specific calculation, and that is why an attorney should be consulted to figure out your actual payment amount.

If you need a referral to an attorney, the Bridge to Justice Referral Program may be able to help:

http://www.nmbar.org/Public/referralprograms.html

Yes, they are likely going to want to see at least the last few years of tax returns as a means of verifying your income.

Let me know if you require any further information. Otherwise, please remember to RATE my answer AT LEAST 3 out of 5 so that I can receive credit for my work.

You are welcome and good luck to you.