MasConcepts Incorporated

Hello Everyone,

I spoke with an attorney today about filing Chapter 13 bankruptcy. To note I make low 6 figures (184). Have roughly $83k unsecured debt(credit card, personal loan), $40k student loan debt, married, and have a $83k truck. As well as 2 homes (1 is a rental) Yes I know bad choices. I am current on absolutely everything. As well as married.

Long story short the attorney calculated me at 100% chapter 13. Didn’t ask for any monthly bills and immediately told us our payment would be around $1850 for 5 years through paycheck deductions. (108,720) No means test, no nothing.

Should I be looking for another attorney? Is this a normal part of the process? Why would they be charging me $22k (ish) over what I owe?

I am going to send this email to the paralegal asking questions as well.

Good evening,

My wife and I were in your office earlier today regarding the proposed Chapter 13 plan, and I had a few follow-up questions. Im sorry if about the length and hope I don’t sound stupid as I have based these questions off some personal research. Trying to learn everything.

The proposed payment of $1,850 per month seems higher than we expected, especially considering our projected income changes in October. Additionally, the total plan amount being approximately $22,000 above our current debt balance raised some concerns, and I wanted to better understand how this was calculated.

From what I’ve researched, disposable income and allowable expenses significantly affect the plan payment. My main priorities are lowering the monthly payment and minimizing the total amount paid while still eliminating the debt as efficiently as possible—especially with my wife’s pregnancy and our household size increasing later this year. I don’t understand how the number $1850 came into play without going through any of our necessary expenses such as food/ utilities etc? Everything I have read shows a means test where we go through my budget in the entirety which could make the number majorly change?

I’d like to make sure we are maximizing all allowable expenses and deductions, including realistic net Airbnb and rental income after expenses, business deductions, and reasonable costs associated with managing the rental property and our primary residence. At what point during this process do we complete all this?

Also, for this Butterfly packet, do we need to complete this packet or is it just if we want to waive the $25 fee for the credit counseling’s?

I’d also like to discuss whether attorney fees and trustee fees can be structured in a way that minimizes the total paid through the plan. Whether that means we pay it upfront using the money we save from not making credit card payments? Finally, could you explain how plan modifications would work if my income drops and our household size increases in October?

Ive also read that tax returns/ bonuses/ pay raises could all get taken into account while in chapter 13? How does that work? Can I expect to be able to keep my tax returns and bonuses? Will my payment go up as I make more money or pay off my wife’s grandfather obligations? Or will the payment stay the same the whole time?

I’ve also read that basically all spending during chapter 13 gets scrutinized by the trustee? Will the trustee have access to our bank accounts? Do we need to really explain every single purchase/ night out etc to the trustee while we are in chapter 13?

If we wanted to loop in my wife’s student loans and my student loans (roughly $30k) it would take our monthly payment higher- if we can’t physically pay the higher amount (keeping in mind we are a 100% case) how does that make the payments work? Do we not pay 100% at that point? Does it go longer than 3 years? Etc?

Lastly, could you please explain the entire process that we will go through with Chapter 13 from the initial consultation to our meeting with you and moving forward?

Thank you for your time—I appreciate your guidance on this.

Let me know your thoughts and experiences?

Edit: we live in Alabama