How much does the trustee get?

[HHM]

The percentage may vary payment to payment, as a practical matter, depending on what type of debts the trustee is required to pay. For example, in the early months of a plan that included mortgage arrears and other secured debts...the trustee's percent may be low because the trustee is required to pay a "certain" amount to creditors. But then as the plan goes on, and those arrears are paid down, etc, the trustee may take a higher percent per payment.

All in all, it should balance out. It's been a while since I have looked at a chapter 13 payment plan, but the last one I remember, you actually calculated the trustees cut based on the total amount that was going to be paid into the plan. For example, if a debtor was going to pay $30,000 over 5 years...the trustee would get $3,000 (assuming a 10% trustee cut). The amount the trustee gets paid monthly may vary.

[chpxiii]

The percentage may vary payment to payment, as a practical matter, depending on what type of debts the trustee is required to pay. For example, in the early months of a plan that included mortgage arrears and other secured debts...the trustee's percent may be low because the trustee is required to pay a "certain" amount to creditors. But then as the plan goes on, and those arrears are paid down, etc, the trustee may take a higher percent per payment.

All in all, it should balance out. It's been a while since I have looked at a chapter 13 payment plan, but the last one I remember, you actually calculated the trustees cut based on the total amount that was going to be paid into the plan. For example, if a debtor was going to pay $30,000 over 5 years...the trustee would get $3,000 (assuming a 10% trustee cut). The amount the trustee gets paid monthly may vary.

Thanks, HHM. This helps to explain it ... somewhat.

I have a question, but I'll create a new post for it.