BkAssist ® - Chapter 13 Story Board - 1

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.

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