Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Your creditors must get more from the Ch. 13 plan, than they would receive were you to liquidate under Ch. 7. Your numbers suggest that you may really only have $300-400 in net disposable income. So, you're on the wire at $400 for the 3-year committment period and okay for the 5 year. The median income is determined by your state's median income (see http://www.usdoj.gov/ust/eo/bapcpa/20061001/bci_data/median_income_table.htm).
You are almost certainly below the median, which means that it is unlikely that your Ch. 13 would be confirmed, and that means Ch. 7. If your state doesn't provide for a homestead exemption, then you would lose your home.
Hope this helps.
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