Chapter 13 Questions

[benniebear]

I am about a week away from my attorney submitting the proposed Chapter 13 plan and want to make sure I totally understand what I am getting into.

I will be paying back 100% of $50,000 unsecured debt. If I understand correctly, there is also a 9.5% (filing in California) trustee fee tacked on, as well as $1750 for the attorney (paid attorney $3500 with $1750 down).

Is the trustee fee a one time fee on the $50K or is it based on the rolling balance each month? Also, does the credit card interest stop on my credit cards?

The primary reason I am filing is that I am foreclosing on my house and my attorney indicated that this will help increase my odds that the 2nd mortgage lender won't pursue a deficiency judgment against me since my disposable income will be tied up in paying back the unsecured credit cards. I hope this is true!

Thanks for the help!

Shelly

[Granny]

Hi Shelly,

Welcome to the forum.

The trustee fee is a percentage of all your payments. It is taken out of each disbursement made by the trustee.

If you are in a 100% plan, then you will pay 100% of the filed claims. You could get lucky and some of your creditors might not file claims. All of mine filed claims, but I've read where others on the forum got lucky.

I can't answer your question about the deficiency balance, but I'm sure others here will chime in with the answer for you.

Good luck.

There is no interest on the unsecured debts, i.e. the credit card debt.

[benniebear]

Thanks for the information. I hope I do get lucky and some of my creditor's don't file a claim, but I won't count on it !