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KJL LAW, Lawyer
Category: Bankruptcy Law
Satisfied Customers: 1624
Experience:  Attorney at law Office of KJLLAW
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Chapter 7 bankruptcy, Oh Nothing Once the debt is

Customer Question

Chapter 7 bankruptcy
JA: What state are you in? And has anything been officially filed?
Customer: Oh Nothing Once the debt is discharged. If I have excess income above expenses, do I have to pay this to the bankruptcy court?
JA: Has anything been filed in civil court? If so, what?
Customer: No Nothing I'm trying to figure out why there is a payment plan with Chapter 7 That doesn't make sense to me
JA: Anything else you want the lawyer to know before I connect you?
Customer: No
Submitted: 1 month ago.
Category: Bankruptcy Law
Customer: replied 1 month ago.
I was told that after all of my expenses for living-rent, food, clothing, car payment, insurance, ect. The excess money would be continued to be paid to the court for 3-4 years. Is this true for Chapter 7 Bankruptcy? I thought the payment plan to the courts was strictly for chapter 13, not chapter 7. If this is the case for Chapter 7, are you not able to save any monthly income to build a savings?
Expert:  KJL LAW replied 1 month ago.
If you had excess income, then what probably happened was that you were forced into a Chapter 13 case by a calculation called the “means test” which is required under the new bankruptcy law.The means test is a projection of your future income, but it is not based upon your real income. It is based upon your income in the six calendar months before the month in which you file your case.One of the documents you have to file with your bankruptcy is a budget which demonstrates to the court how much income you have each month and how much you need to pay your taxes and living expenses. If your budget shows that you have income you do not need to pay taxes and live on, the court will require that you pay that excess income over to a trustee for a three to five year period in partial payment of the creditors.That is what probably happened in your case. I hope this clarifies. Please don't forget to rate the question with stars so that I will receive credit and payment for assisting you with your question.