13 questions??

[dadof3]

hi all,
long time since my last post , i will try to update as best i can, filed chp 13 on 01-07, surrederd new home with 2k mthly payment, moved back to prior res and chp 13 payment 2100 mth including morgtage and auto and credit cards, the question i have is that the intrest rate on payback of debt is 8% to all creditors included in plan and highest intrest rate on secured debt is 6.875%, lawrer did nt respond to email ??? explanaton of this , isnt bankruptcy supposed to reduce intrest rate pd to creditors? also must turn in all refunds, is that state and city too?

[lrprn]

hi all, long time since my last post

Welcome back!

the question i have is that the intrest rate on payback of debt is 8% to all creditors included in plan and highest intrest rate on secured debt is 6.875%, lawrer did nt respond to email ??? explanaton of this , isnt bankruptcy supposed to reduce intrest rate pd to creditors?

Any interest increases and late fees added to your account before you file are allowed, but non-secured creditors can't charge any interest on what you owe or tack on late fees after the day you file. Secured creditors will charge the interest your loan and/or reaffirmation agreement with them stated you will pay after you file. Where did your % figures come from??

also must turn in all refunds, is that state and city too?

Our trustee expected us to turn in our federal and state tax returns and provide access to 42% of the total refunds (his cut for 2006 for the six months after we filed). You need to check with your lawyer to know what's typical in your district - there's quite a wide variance between bk district practices around how tax returns and refunds are handled in Ch 13.

[Granny]

hi all,
the question i have is that the intrest rate on payback of debt is 8% to all creditors included in plan and highest intrest rate on secured debt is 6.875%, lawrer did nt respond to email ??? explanaton of this , isnt bankruptcy supposed to reduce intrest rate pd to creditors? also must turn in all refunds, is that state and city too?

In my case, the rate of interest is down, but the total interest paid to a particular creditor has gone up $10,000 due to the way it is being paid. It is now being amortized over 60 months instead of 24 months.

My house arrears were originally written up to be paid at 4% and after I switched attorneys to file an amended plan, the second attorney is writing it up at 0% (wanna bet that changes before the plan is confirmed)

I have found some rulings in my district that indicate the interest rate to be prime plus, which was working out to 8 to 9.25%, but apparently, that is not written in stone because the judge who signed that general order is the same judge who approved the 12% and 13.95% to the note for the first creditor I mentioned.

Personally, I think the interest rate is at the whim of the attorney and his experience with what the trustee will approve (so I was told by attorney #2, who apparently doesn't have as good of a relationship with the trustee as attorney #1).

Good luck with the rates.

[rrockinggramma]

If I read your post right, you are not really paying 8 percent interest. The trustee is paying 8 percent of what is owed to the creditor that filed a claim. So, if your cc is 5000, then that creditor is going to get 400.00 total (unless the trustee raises the percentage paid to the creditor due to lack of claims filed) So you are NOT paying interest. In fact, no fees, penalities, interest accrue while in a chapter 13.

[CATCHMEIFYOUCAN]

When I WAS in Ch13 for a minute. My creditors were only getting 13cents on the dollar if I had stayed in Ch13 by the end of 5 years (Bahahahahahahahaha).

The Creditors screwed themselves with the sopposedly NEW LAWS, they are getting LESS back!

Regardless, they still continue to make BILLIONS of profit every year!

[aa06a47]

I don't think the credit card companies have been hurt by the new law, though I don't think it was as lucritive as they thought it would be. Alot more folks are paying something back vs nothing under the previous law.

[CATCHMEIFYOUCAN]

Correctomundo

I don't think the credit card companies have been hurt by the new law, though I don't think it was as lucritive as they thought it would be. Alot more folks are paying something back vs nothing under the previous law.

CORRECTOMUNDO ! They are getting LESS BACK ! But also, even though people are thrown into Chapter 13 most don't make it and end up filing Ch7.

Regardless, don't feel guilty about your debt if you have to file BK, because the CC's still make out in the end claiming BILLIONS of profit! Would like to hear about the numbers from 2006 what they made ! ? ? ? Anyone ! ? ? ?

CMIYC