BkAssist ® - Chapter 13 Story Board - 1
Here is the first cut at a Chapter 13 plan for Donald & Daisy Duck:
What you're seeing:
- This is what you would see the first time you double-click on "Chapter 13 Plan" within the Schedules & Forms Page.
- Some background:
- Donald & Daisy live in the District of Massachusetts.
- Donald & Daisy are a below-median married couple filing a joint case to prevent a foreclosure.
- They have $50,000 in exempt equity in their home.
- They owe $22,546.60 in arrears (10 payments) on their mortgage. For calculation purposes, we're going to assume
that this is the payoff amount, including all foreclosure and other fees.
- They have $45,000 in unsecured debt.
- They have $4,500 in exempt household goods.
- Donald owns the world's largest ball of string (the product of decades of collecting), which he thinks
is worth $15,000. We've only been able to exempt $6,000 worth using the Massachusetts wildcard exemption.
- The liquidation analysis starts with the $9,000 in non-exempt equity in Donald's ball of string. From that,
we deduct two sums to arrive at the amount available for distribution in a hypothetical Chapter 7 case:
- $2,700.00, which is an estimate of the other costs of administering the chapter 7 estate, including the
fees for the estate's attorney and accountant. (BkAssist calculates this amount based on a percentage estimate
you provide on the Options tab, which we're not showing you in the story board.)
- $1,254.54, which is the maximum trustee commission under 11 U.S.C. § 326(a).
- In order to pay off the secured arrears, pay the general unsecured creditors the minimum amount they're
entitled to under § 1325(a)(4), and to pay the Chapter 13 Trustee's 9.28% fee, the Ducks would have to pay
$32,100. This isn't possible in 60 months if only $500 is available, as the shortfall indicates. In fact, the
Ducks would need to have $535 in disposable income to make this plan feasible.
But the situation is actually more dire, as the next screen shows...