Q: Is there a minimum repayment plan amount when filing a ch13 in NY Southern District court ?
I have only unsecured debt. My disposable income is around $80, would my plan be accepted? I’m under the median income. Had a ch7 discharged less than 8 years ago. Being sued by creditors. I don’t have any non exempt assets.
A: An $80 per month Plan can be confirmed. The Ch. 13 Trustee in the Poughkeepsie Court objects to Plans featuring payments of less that $50 per month, and frequently will try to get a low paying Plan increased to $75 per month, but $80 per month will clearly work. Tax refunds received during the Plan that exceed $1,500 per debtor per year must be contributed to the Plan as well.
Carl Nelson agrees with this answer
There is no per se minimum but of course it depends on the circumstances. I don’t see any inherent issue with an $80/month payment under the situation you described, but you should certainly seek the counsel of a qualified attorney to avoid the many potential pitfalls in bankruptcy filings—many of us offer free consultations.
Best of luck.
Your post offers no financial circumstances, and one needs to evaluate that to answer your question.
And that's because the Bankruptcy Code expressly requires that a Chapter 13 repayment plan provide to creditors at least as much as the "indubitable equivalent" of what they'd each get in a Ch. 7 liquidation. And the Code requires that the Plan be proposed "in good faith".
If your financial circumstances meet those requirements, then the comments of my NY colleagues kick in.
A: There is no minimum payment as long as it is not zero. The payment would likely be the amount available according to the means test but also your non exempt assets are a factor. Speak to an attorney to determine the specifics.
The required time between a Ch 7 and a Ch 13 is four years, so you're OK there. And, since there is no requisite minimum payment and, as long as $80 is your disposable income, there shouldn't be a problem there. Also, most trustees require that any amount over a specified amount of tax refunds (possibly IRS & state combined) must be remitted to the trustee for distribution to creditors.
If you can speak with an attorney in person before filing, do so.
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