I don't understand what we're paying?

[jnjw]

Last night I went over our bankruptcy paperwork (again and again) that our attorney gave us a copy of yesterday. He is suggesting a 3-year plan, and it has what our disposable income is, how much will be deducted from my husband's pay check bi-weekly, etc., but here is where I am getting totally confused:

ALL of our bills that we keeping are "outside" the plan. There is nothing included inside the plan - our house, our cars, our student loans (minus the private one we're going to try and get discharged), everything. Where it lists what is getting paid, all it has is the Trustee's fee and the rest of what we owe our attorney. There is nothing listed about what unsecureds are getting paid with our monthly payment, if any, how much they're getting paid, etc.

I looked these papers over a total of 3 times and so I'm wondering what exactly we're paying into this plan for? Is there a specific section I need to zero in on or do they not include this type of information, such as a breakdown as to who gets what?

Thanks in advance!

[Dirk Squarejaw]

I've seen other members on here post about plans like yours where only attorney and trustee fees are paid. Did you pass the means test but were below state median? I think that was the case of some of the other members that posted about plans like this.

[JollyGG]

Are you below your state median?
Is there a reason you are filing a chapter 13 instead of a chapter 7?

[HHM]

Are you above or below your state median income (I would assume below if you are in a 3 year plan)
What is the disposible income.
And if only the trustee and attorney is being paid in the chapter 13, then you must not be trying to save an asset in chapter 13.

Which begs the question, why do a chapter 13?

[isitreal]

Others please correct me if I'm wrong.. But, you are resonsible for the other things outside of the plan OUTSIDE OF THE PLAN. They would not be listed "in your plan".

[jnjw]

Yes, we are saving assets. That's why we're filing 13. We are above our state median income.

The disposable income is like 10 times less than what I thought it would be, only $184.19.

I am looking at Form 22C, and while my atty may be asking for a 3-year plan, it actually has a little box blackened in at the top that says, "The applicable commitment period is for 5 years," instead of 3 years, but on the Chapter 13 Plan documents, it states $184.19 per month for 36 months, total plan payments $6,630.84. Well, we only owe our atty the other half for a 13, which is $1300 because we have already paid him $1300. So that's what I'm not understanding. Where is the rest of our money, the $5,130.84, going to go? I mean that's certainly not going to all go to the Trustee is it? I mean for what? Writing a check to our atty for us?

[isitreal]

You keep the rest and pay your bills not in the plan.

[jnjw]

Others please correct me if I'm wrong.. But, you are resonsible for the other things outside of the plan OUTSIDE OF THE PLAN. They would not be listed "in your plan".

Right, I know we're responsible for what's outside the plan because we want to keep our cars and our house, etc., but what I am not understanding is where is the money to the unsecured creditors? I mean we have a monthly payment that we will pay to the Trustee, but for what? There's nothing listed here other than the rest of the atty fees and the trustee %.

Are the unsecureds not getting anything? I *thought* they would get something. That's why I am confused because I thought it would be outlined which ones were getting what amount, if any.

[isitreal]

The trustee will take the money he gets and pay what he can to the creditors. After your plan is over, the debts are "written off". All of it will be gone. They only get what the trustee gives them from your payment.

[jnjw]

So they must be getting something, it's just not listed what. All righty, then.

Thanks!

[isitreal]

So they must be getting something, it's just not listed what. All righty, then.

Thanks!

Welcome to your new life! I know mine is a lot less stressful now! No creditors calling.. I don't have to worry about having money for groceries, etc.

[woeisme]

It doesn't say which of your unsecured it getting what amount yet because until they file claims, nobody knows how much goes to what unsecured creditor. After you file I think they have 90-180 days (depending on whether they are regular creditors or government agencies) to make a claim, so until that time period expires, it's impossible to predict which will file claims and for how much, so the % to each unsecured it determined after the time for making claims is up. In the meantime your trustee will put the money in an account, and once they know who made claims and for how much, they will determine what % each gets and start dispersing it.

[jnjw]

Welcome to your new life! I know mine is a lot less stressful now! No creditors calling.. I don't have to worry about having money for groceries, etc.

Yes! I know what you mean! Yesterday, after FINALLY signing the papers and the atty submitting them, I could finally...I don't know....breathe again? We've been dealing with all of this for a very long time now I know you know what I mean when I say I have been stressed to the max!

[jnjw]

It doesn't say which of your unsecured it getting what amount yet because until they file claims, nobody knows how much goes to what unsecured creditor. After you file I think they have 90-180 days (depending on whether they are regular creditors or government agencies) to make a claim, so until that time period expires, it's impossible to predict which will file claims and for how much, so the % to each unsecured it determined after the time for making claims is up. In the meantime your trustee will put the money in an account, and once they know who made claims and for how much, they will determine what % each gets and start dispersing it.

That makes perfect sense!

Sorry, I'm a newb to all this, so I'm not sure how these things go and I guess if I had really thought about it, I could have figured that out...lol.

[lrprn]

So they must be getting something, it's just not listed what. All righty, then.

There's no indication of what your non-secured creditors will receive because until they have had a chance to file claims after you file, there's no way to know how much of your payment will go to which creditors. Regular non-secured creditors have 90 days and the government has 120 days to file claims to be repaid in your case.

It's interesting that you are above the median in income but your lawyer is filing a three-year plan. How much above the median are you?