Paying back on a 5 year for a CH 13.

[jlasky]

I am in debt around 72000 unsecured. I talked with my first lawyer and he mentioned we would have to payback a minimum of 10% (7,200) on a 5 year plan. Is this true?

[lrprn]

I am in debt around 72000 unsecured. I talked with my first lawyer and he mentioned we would have to payback a minimum of 10% (7,200) on a 5 year plan. Is this true?

Until a lawyer actually completes the Means Test, files your Ch 13 case, and it's confirmed by the trustee, it's impossible to tell how much your payback % to creditors might be.

I would be wary of any lawyer who glances at your income, asset values, exemptions, and living expenses, then whips out a payback % figure. (Frankly, the final payback % depends on which of your creditors actually file claims to receive payments anyway.)

[Logan]

I believe if you choose a longer period than 36 months then there is a minimum but not sure what it is....Anyone?

[lrprn]

I believe if you choose a longer period than 36 months then there is a minimum but not sure what it is....Anyone?

Regardless of whether the Ch 13 is set to run 36 months or 60 months, your creditors must receive at least as much as they would have received in a Ch 7. There is no minimum payback % mandated for Ch 13. There have been a few cases where 0% payback to non-secured creditors who filed claims has been confirmed.

[wayne-o]

Like the others said the lawyer doesnt decide what percentage you pay back, your schedules do. My petition called for 20% payback to unsecureds but due to one creditor not filing, and a few extra payments made by me, they will be getting back 48%.

[SinkingFast]

Until a lawyer actually completes the Means Test, files your Ch 13 case, and it's confirmed by the trustee, it's impossible to tell how much your payback % to creditors might be.

I would be wary of any lawyer who glances at your income, asset values, exemptions, and living expenses, then whips out a payback % figure. (Frankly, the final payback % depends on which of your creditors actually file claims to receive payments anyway.)

That is sooooooo true!!

We were below the Median and the first attny we Consulted did that.

Took Hubby's pay check, deducted his (the attny's) own set of allowable deductions. Then gleefully announced we'd only have to pay back $195/mo for 60 months.

Here's a link for you:

http://www.legalconsumer.com/means-t...ator/index.php

You plug in some info and that site will give you a good idea if you are a Ch 7 candidate or if you'll need to file a Ch 13.

[CATCHMEIFYOUCAN]

Paying back on a 5 year for a CH 13

Paying back on a 5 year for a CH 13.
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I am in debt around 72000 unsecured. I talked with my first lawyer and he mentioned we would have to payback a minimum of 10% (7,200) on a 5 year plan. Is this true?

Mine was about the same amount of debt, all unsecured. I had to file Ch13 at first. Even though the Means Test proved NEG 60 odd dollars, my schedules proved $800 PLUS! That was because I had been working two full time jobs. At first my payback was 10% IF the Trustee would allow a "good faith payment," offer of $250 monthly, however since the real schedules proved more he wanted the full $800 a month (so that was about 40% payback)! End result I just quit one job and converted to CH 7.

Best of Luck, CMIYC

[tofargone]

He may also be stating what is the norm in your region. I know with mine he told me anything less than 16% and the trustee will want to dig. My means actually came out where I am at almost 75% probably 100% after a few creditors don't file.

I would get another consult. If you are at all leary of your attorney you want to meet others. First impressions are true a lot of the times.

Good luck

[southerncomfort]

0% to unsecured creditors

My plan pays back priority and secured creditors 100% and the unsecured creditors ($129,000) 0%. I did however file before the law changed . .

[CBC123]

What does this all mean. I just filled and started paying CH13 in 12/6 and really dont know as much as I should. Can any of you explain to me the payback percentages and stuff that you guys are talking about?


Thanks,
CBC123

[lrprn]

Here are three excellent and reliable websites that explain Ch 13 from top to bottom -

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter13.html

http://www.abanet.org/publiced/practical/bankruptcy13_whatis.html

http://moranlaw.net/13workings.htm#Chapter%2013%20practice

Start here, read and absorb, then come back with your questions. We're here to help any way we can!

[SinkingFast]

My plan pays back priority and secured creditors 100% and the unsecured creditors ($129,000) 0%. I did however file before the law changed . .

It can still work the same for Below the Median filers under New Law.

I've seen a Plan filed here that paid 100% to arrears on the house and a car, and back taxes that were owed. Unsecureds would get 0%. The filers were below the Median and in a 36 month Plan.

[Granny]

It can still work the same for Below the Median filers under New Law.

I've seen a Plan filed here that paid 100% to arrears on the house and a car, and back taxes that were owed. Unsecureds would get 0%. The filers were below the Median and in a 36 month Plan.

That's what it is for me, except 60 months payback for arrears and taxes only, unsecured get nada, nothing, zip. I filed Dec 06, new law.

[wooisme]

my plan, I pay back 100% to secured loans, 100% joint unsecured debt and 1% to all individual unsecured debt. means test yes, but also, it doesn't matter as far as your payment because the way it is, ALLLLLL of your disposable income goes to the trustee and there's no way to tell what that is until you do the budget report

[southerncomfort]

It can still work the same for Below the Median filers under New Law.

I've seen a Plan filed here that paid 100% to arrears on the house and a car, and back taxes that were owed. Unsecureds would get 0%. The filers were below the Median and in a 36 month Plan.

I'm not exactly sure how mine worked out the way it did. Those mathematical formulas confuse me.