Trustee Fee amount?

[IndyNation]

Hi all,

I have a question on the trustee fees. I looked through the forum, but am a little confused. Our trustee wants 9.3% or 10%, I'm not sure the lawyer said both numbers.

But that is in addition to our payback amount?

So if we owed 100k, then we would have ~$10k in trustee fees, ~3k layer and payback ~$113k? We kind of thought when we filed the trustee fee would come out of the payments, not be in addition too.

Thanks so much!!

[justbroke]

The Chapter 13 fee in a 100% plan is different than that for a less than 100% plan. I'll write about both.

For a 100% plan, the fee is on top of all payments made by the Chapter 13 Trustee. If you have $100K in unsecured debt and $100K n secured debt payments (due over the life of the plan), then you will pay 10% of $200K or $20K in additional money ABOVE the debt payments.

For a plan less than 100%, the 10% fee just comes from the DMI. If you are in a plan less than 90%, I like to say that the creditors pay the fee!

Here on BKForum, we like to say that both the percentage payback and the Chapter 13 Trustee fee don't matter in less than 100% plans. But, if you're in a 100% plan then you will be paying more than 100% due to the fee.