Legal Question in Bankruptcy in New York

Re: filing chapter 13

This is too complicated a subject to provide more than a very brief overview on these boards. Briefly, the length of a debtor's chapter 13 plan is determined based on the results of the "means test" (which is based on average of debtor's income for last 6 month less a list of approved expenses based on certain government standards and takes into account family size). Based on that there is either a 3 or 5 year commitment period. In chapter 13 the debtor is on a budget. The remaining income left over after approved expenses is applied to fund the debtor's plan. In addition, for a debtor's chapter 13 plan to be approved creditors must receive not less than they would receive if the debtor had filed chapter 7. This involves a hypothetical liquidation of the debtor's assets taking into account approved exemptions. For some debtors this may mean that a 25% plan is o.k., while others will need to do a 90% or 100% plan.

Chapter 13 is a complicated area and not suitable for a "Do It Yourself" project. If you are thinking of filing chapter 13 your should hire a a lawyer.

Check out the Frequently Asked Questions (FAQs) regarding chapter 13 and personal bankruptcy on our website at

http://www.starrandstarr.com/faqs.htm

for more info.

(under the "Personal Bankruptcy Questions" section)

Nothing in this response to your posting on Law Guru is intended or should be considered as legal advice to your specific situation. Our posting is intended to provide general information of interest to the public. Facts relevant to your situation and not disclosed in your posting may affect your specific legal rights and remedies.

Feel free to contact me to schedule a free no obligation initial consultation at 8888678165.

Good luck,