Chapter 13 Debt Consolidation: Pay Smaller Monthly Payments & Prioritize Debts

1. Chapter 13 • Consolidate Debt • Pay Smaller Monthly Payments

2. Priority Debt • Taxes and Domestic Support Obligations Repaid at 100%

3. Priority Debt • Taxes and Domestic Support Obligations Repaid at 100% • Student Loans Paid at a %, but still owed

4. Priority Debt • Taxes and Domestic Support Obligations Repaid at 100% • Student Loans Paid at a %, but still owed • Government Fines, Bad Checks, Retirement Loans, Ongoing Support Paid direct at 100%

5. Priority Debt • Taxes and Domestic Support Obligations Repaid at 100% • Student Loans Paid at a %, but still owed • Government Fines, Bad Checks, Retirement Loans, Ongoing Support Paid direct at 100% • All Others Treated as Unsecured Debt

6. Secured • Regular Mortgage Paid direct at 100%

7. Secured • Regular Mortgage Paid direct at 100% • Mortgage Arrearages Paid at 100% without interest

8. Secured • Regular Mortgage Paid direct at 100% • Mortgage Arrearages Paid at 100% without interest • 910 Property Paid at 100% plus interest

9. Secured • Regular Mortgage Paid direct at 100% • Mortgage Arrearages Paid at 100% without interest • 910 Property Paid at 100% plus interest • All Other Property Paid at 100% of value plus interest on value

10. More than 910 days prior to filing If: Car Debt 18,000 Car Value 12,000 Interest 21% Plan pays 100% of 12,000 Plus ~9% interest Balance of 6,000 as unsecured debt

11. Cross-Collateralized Debts • Credit Union Debts • Unsecured debts are actually secured • Chapter 13 – May Selectively Reaffirm

12. Executory Contracts • All Executory Contracts Paid direct at 100%

13. Unsecured • Percentage Paid to Unsecured= The Larger of (liquidation analysis, Schedule I & J excess income, or Form 22 excess income) divided by the Total Unsecured Debt

14. Liquidation analysis Property Value - Debt Against the Property =Equity Equity -Costs of Sale = Net Value of Property Net Value of Property -Exemptions = Value Available for Creditors

15. Excess Income Total Monthly Income –Reasonable Expenses = Excess Income

16. Calculating Excess Income The Last 6 Months Income/6 –IRS Approved Expenses = Excess Income

17. Amount returned to Unsecured Schedule I & J excess income x plan length = X Form 22 excess income x plan length = Y Liquidation analysis = Z

18. Amount returned to Unsecured Schedule I & J excess income x plan length = X Form 22 excess income x plan length = Y Liquidation analysis = Z The Greater of X, Y, or Z = The % Paid to Unsecured Creditors Total Unsecured Debt

19. Co-Signed Debt • May be paid at 100% in the Plan

20. Court Costs, Attorney Fees, and Trustee Fees • Attorney Fees $2750.00 • Costs $446.00 • Trustee’s Fees 10% of Plan Payments

21. Calculating a Plan Payment Priority Debt x 100% = A Student Loan Debt x 10% = B Secured Debt x 100% = C Secured Debt x 9% = D Unsecured Debt x 10% = E Balance of Attorney Fees = F A + B + C + D + E + F x 11% = G G x 10 divided by 57 = Monthly Payment

22. Assets • Keep everything except Tax Refunds Total Tax Refund - $1,000.00 = Amount paid to Court

23. Bank Accounts • Open a New Account Before you File

24. Recap of Chapter 13 • Priority Debt Taxes paid at 100% Student Loans paid at % Fines and Support paid direct at 100% All Other paid as unsecured • Secured Debt Mortgage paid direct at 100% Mortgage arrearages paid at 100% without interest 910 Property paid at 100% plus interest All Other paid at 100% of value plus interest on value • Executory Contracts Paid direct at 100% • Unsecured Paid at % • Assets Keep all but excess refunds