If I file a chapter 13, what happens if there is no money to repay creditors? 35 Answers as of November 30, 2011

If I file this, what happens if my expenses are more than our monthly income and there is no money left to repay creditors.

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CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
You should instead be in a chapter 7. you would be placed in that.
Answer Applies to: California
Replied: 11/30/2011
Philip R. Boardman, Attorney at Law
Philip R. Boardman, Attorney at Law | Phil Boardman
If you have no disposable income, then you will not qualify for a Ch. 13. You will need to look at filing a Ch. 7.
Answer Applies to: Virginia
Replied: 11/16/2011
Joseph Lehn, Esq
Joseph Lehn, Esq | Lehn Law, PA
If you have no disposable income, you may be better suited for filing a Chapter 7. Though there are other factors such as the means test results and your asset situation which still need to be considered.
Answer Applies to: Florida
Replied: 11/15/2011
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
You can't file a successful chapter 13 unless you can make a repayment plan. It will never be approved by the court. The purpose of a chapter 13 is a reorganization of the debt. If your expenses are more than your income you need to cut the expenses down to make room for payments, file a chapter 7, or do nothing. Go get a consultation with a knowledgeable local bankruptcy attorney who can access your situation.
Answer Applies to: California
Replied: 11/15/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Then you can't be in Chapter 13. Have you consulted with an attorney? Calculating the numbers is what your attorney should do for you.
Answer Applies to: California
Replied: 11/15/2011
    Mercado & Hartung, PLLC
    Mercado & Hartung, PLLC | Christopher J. Mercado
    You will still need to pay into the plan an amount to satisfy secured creditors and cure arrearages.
    Answer Applies to: Washington
    Replied: 11/14/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    It would not be smart to file a chapter 13 if your expenses are more than your income. If this is the case then you are limited to a chapter 7 and the benefits of this chapter.
    Answer Applies to: California
    Replied: 11/14/2011
    The Law Offices of Seth D. Schraier
    The Law Offices of Seth D. Schraier | Seth D. Schraier
    If your expenses are larger than your monthly income, and there will be no money left to pay the creditors, then you should be applying for Chapter 7 Bankruptcy instead of Chapter 13 Bankruptcy. Chapter 7 Bankruptcy proceedings applies a "monthly means" test that specifically looks to see if your economic situation is so bad that you would be unable to make any sort of payment plan to your creditors. Now that said, it is important to note that although your expenses may be higher than your income, if you still have a lot of assets, especially in value greater than your state's exceptions, then the U.S. Bankruptcy Trustee could order that these assets be liquidated in order to pay off the debt. This includes cars you may have or real estate. The U.S. Bankruptcy Trustee wants to see the whole picture of your finances, so simply having greater expenses than income doesn't necessarily mean that you will be exempt from making payments or having assets taken away to pay your outstanding debts.
    Answer Applies to: New York
    Replied: 11/14/2011
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Depends on what district you are in. Some districts in NY may allow for a zero percent plan, (which creditors get zero), but you should check with a local attorney. If not, then you will not get your chapter 13 confirmed.
    Answer Applies to: New York
    Replied: 11/14/2011
    Charles R. Nettles - Attorney at Law
    Charles R. Nettles - Attorney at Law | Charles R. Nettles
    Then, you don't qualify for Chapter 13 and must either file Chapter 7 or not file at all.
    Answer Applies to: Texas
    Replied: 11/14/2011
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Then your case will be dismissed.
    Answer Applies to: Michigan
    Replied: 11/14/2011
    Alfred Law Firm
    Alfred Law Firm | Janice Alfred
    You must be able to pay something back to your creditors in a chapter 13; otherwise, your chapter 13 plan will be rejected and you will not qualify to file. If your expenses are more than your income, maybe you should consider filing a chapter 7 instead.
    Answer Applies to: Georgia
    Replied: 11/14/2011
    Siegel & Siegel, P.C. | Sharon M. Siegel
    Your case will be dismissed. You should be in Chapter 7 in that situation.
    Answer Applies to: New York
    Replied: 11/14/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    A chapter 13 is designed for debtors with regular income that have disposable income to pay creditors some or all of their claims.
    Answer Applies to: California
    Replied: 11/14/2011
    Heupel Law
    Heupel Law | Kevin Heupel
    If your expenses are more than your income, then your case will be dismissed. You don't have to repay debt in a Chapter 13 plan, but you do need to pay the trustee's fee, which requires some positive cash flow. Chapter 13 is too difficult to file without an attorney and will likely result in your case being dismissed. Don't be cheap - be smart and hire an attorney. Discover the secrets of bankruptcy and eliminate your debt.
    Answer Applies to: Colorado
    Replied: 11/14/2011
    G. Anthony Yuthas & Assoc.
    G. Anthony Yuthas & Assoc. | Tony Yuthas
    Your plan payments must take 1st priority or your plan will fail.
    Answer Applies to: Colorado
    Replied: 11/14/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    You can't do a Chapter 13 case if you don't have some money to pay your creditors, even if it is a low amount like $100 per month.
    Answer Applies to: California
    Replied: 11/14/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    You can only file Chapter 13 if there is disposable income to be paid to creditors. Chapter 7 is often a better option for those with expenses that exceed monthly income but only if you are otherwise eligible and qualify.
    Answer Applies to: Indiana
    Replied: 11/14/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    Your case will be dismissed, because you don't qualify for a chapter 13.
    Answer Applies to: California
    Replied: 11/14/2011
    AyerHoffman, LLP
    AyerHoffman, LLP | David C. Ayer
    You may not qualify for a Chapter 13. Your bankruptcy attorney will perform a means test based on your income and your debts to determine whether you qualify for a Chapter 13 repayment or a Chapter 7 discharge. Some people qualify for both. A Chapter 13 plan will not be accepted by the bankruptcy trustee if you cannot make the payments.
    Answer Applies to: Massachusetts
    Replied: 11/14/2011
    Lakelaw - Loop Bankruptcy
    Lakelaw - Loop Bankruptcy | David Leibowitz
    Your chapter 13 plan won't be confirmed. It would not be feasible.
    Answer Applies to: Illinois
    Replied: 11/14/2011
    Ryan Legal Services, Inc.
    Ryan Legal Services, Inc. | Kevin Ryan
    The plan must be a feasible plan pursuant to 11 USC 1325. If you are above the applicable median income after completing Form 22C, then you must pay unsecured creditors the amount on Line 59 x 60. If you are below the median income you must pay in your monthly discretionary income on line 20 of Schedule J for at least 36 months.
    Answer Applies to: Ohio
    Replied: 11/14/2011
    Moore Taylor Law Firm, P.A.
    Moore Taylor Law Firm, P.A. | Jane Downey
    To file a 13, you need to show you are feasible, meaning you have money to pay the required % to your creditors the law requires.
    Answer Applies to: South Carolina
    Replied: 11/14/2011
    Dan Wilson Bankruptcy
    Dan Wilson Bankruptcy | Dan Wilson
    A Chapter 13 plan cannot be confirmed with 0$ payment plan.
    Answer Applies to: Colorado
    Replied: 11/14/2011
    Law Office of Robert Sisson | Robert Sisson
    If that is the situation then perhaps u should have been filing for a chapter 7. If u have already filed for the 13, then consider converting to a chapter 7.
    Answer Applies to: Wisconsin
    Replied: 11/11/2011
    Grace Law Offices of John F Geraghty Jr.
    Grace Law Offices of John F Geraghty Jr. | John F. Geraghty, Jr.
    You would be surprised at how inexpensive a good Chapter 13 plan can significantly reduce your debts.
    Answer Applies to: Georgia
    Replied: 11/11/2011
    Buff & Chronister, LLC.
    Buff & Chronister, LLC. | Curtis L. Chronister Jr.
    You will not get your plan confirmed if you do not have disposable income to at least pay your secured creditors. Your case would be converted to a Chapter 7 or dismissed.
    Answer Applies to: Georgia
    Replied: 11/11/2011
    Weber Law Firm, P.C.
    Weber Law Firm, P.C. | William Weber
    Zero percent payment plans to unsecured creditors are permissible if your budget demonstrates that you cannot afford to pay any funds to unsecured creditors.
    Answer Applies to: Texas
    Replied: 11/11/2011
    The Law Offices of Kristy Qiu
    The Law Offices of Kristy Qiu | Mengjun Qiu
    Your case will get dismissed. The trustee will make a recommendation as to what he/she wants you to pay to the unsecured creditors first, then if you can't make the recommendation, it will be dismissed. You can have a family or friend to sign an affidavit of support for you to satisfy the recommendation.
    Answer Applies to: Florida
    Replied: 11/11/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Its likely the case gets dismissed. Tough to have a repayment plan and then nobody ends up getting paid.
    Answer Applies to: California
    Replied: 11/11/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Then you don't have a confirmable plan and the case would be dismissed.
    Answer Applies to: California
    Replied: 11/11/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    You got to make plan payments of some minimum amount and that depends on your ability to pay and what is mandatory that you pay in the plan. Chapter 13 is highly complex bankruptcy and that is why you need to have a lawyer explain it to you and give you an opinion as to whether that would be best for you and if you qualify.
    Answer Applies to: California
    Replied: 11/11/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    That would indicate two things: (1) You filed without a lawyer, which is almost always a way to make sure a chapter 13 will fail. (2) Your case will be dismissed as there is no way to submit a plan, and you wasted your filing fee. With numbers stacked that way, you are either ineligible to file, or should not file Chapter 13.
    Answer Applies to: Georgia
    Replied: 11/11/2011
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