Average Creditor payback percentage

[t160out]

Hello All,

I'm curious as to what people are paying as a % of their total debt in a 5 yr chapter 13 BK.

I've been doing numbers and I'm around $.70/dollar. The funny thing is, I think i might actually live BETTER after filing if that sounds strange enough... Peter and Paul have been robbed so many times I bet they think they're in Sherwood Forest

I hope I'm not screwing up the numbers, but I'm not sure if that 70% is low, high, avg, etc.

thanks!

[MJJ3767]

Mine is close to 0% to unsecured. The only ones getting paid from my plan are the IRS, the trustee and my attorney.

[Nicollette]

My unsecured are getting 2%, and my secured(car) is getting 8%.

[justbroke]

The average... who knows. There is some incentive, however, to paying at least 70%. The percentage is really a function of your disposable monthly income.

I would venture to guess that if the average is in the 10-30% range -- which is likely -- then that's an indicator that Chapter 13 filers really have no money.

However, the Trustee fee eats into the amount going to unsecured creditors. The trustee is getting nearly $500/month from me! The Trustee fee can take money away from unsecured creditors, as it does in my case.

[HHM]

The BK court could care less about the percentage of payback.

[kornellred]

I think justbroke's "guess" as to the average unsecured payback percentage is definitely in the ballpark. But you must remember that the payback percentage is the result of the math - there is no target or goal established for a derivative figure. It just is what it is - to use a soon-to-be worn out phrase.
Trustees are limited to taking 10 percent of a monthly payment from the debtor, by law. They are also limited to earning $177,526 per year as Trustees (poor babies!). Some of them can earn that much easily without exacting the 10 percent maximum.

[rrockinggramma]

To me, the important number was how many of my unsecured filed claims. For me, it was less than 1/2. Only those that file a claim get paid. The others are discharged at the end of your plan.

[chloe0724]

My unsecureds are getting back 25%

[ansky0007]

Hello All,

I'm curious as to what people are paying as a % of their total debt in a 5 yr chapter 13 BK.

I've been doing numbers and I'm around $.70/dollar. The funny thing is, I think i might actually live BETTER after filing if that sounds strange enough... Peter and Paul have been robbed so many times I bet they think they're in Sherwood Forest

I hope I'm not screwing up the numbers, but I'm not sure if that 70% is low, high, avg, etc.

thanks!

Do you have alot of disposable income?

[woeisme]

My base plan was set up to pay my unsecured 65%. Not all filed, so those that did are getting back 75%. Mine is so high because almost all my debt is unsecured, so that's where my disposable income is going (my cars are both paid off any my mortage is only $700/month, including taxes and homeowners insurance, so a big chunk of my money was available for paying unsecureds.) I wish I had bought a newer car before filing so I could have reduced my paybacks to unsecured and had some of that money paying my car payment... but live and learn!

[havefaith]

Question

To me, the important number was how many of my unsecured filed claims. For me, it was less than 1/2. Only those that file a claim get paid. The others are discharged at the end of your plan.

Greetings! I'm new here.. I was hoping for a bit of clarification on your posting rrockinggramma. Does the # of creditors that file have anything to do with whether you are in a 3 or 5 year plan? We have 2 appts with attorneys next week.. I have a million questions! Thanks!

[liz417]

Greetings! I'm new here.. I was hoping for a bit of clarification on your posting rrockinggramma. Does the # of creditors that file have anything to do with whether you are in a 3 or 5 year plan? We have 2 appts with attorneys next week.. I have a million questions! Thanks!

Hi and welcome,
If you are below the median income and/or a 100% payback, you qualify for a 3 year plan. Of course there are some expections to this rule, I think we have a few posters on this board that are NOT below the median and NOT on a 100% payback, that are in a 3 year plan, depends on your Trustee. Some creditors decide not to file a claim (for whatever reasons) and all that does is increase the % amount of the payback to the other creditors.

Good Luck!

[havefaith]

Hi and welcome,
If you are below the median income and/or a 100% payback, you qualify for a 3 year plan. Of course there are some expections to this rule, I think we have a few posters on this board that are NOT below the median and NOT on a 100% payback, that are in a 3 year plan, depends on your Trustee. Some creditors decide not to file a claim (for whatever reasons) and all that does is increase the % amount of the payback to the other creditors.

Good Luck!

Thanks, Liz417!
Is the plan based on real expenses or the allowances the the government schedules? We are over on the median income for our state and if our expenses are based on schedules, we won't qualify for ch 7. Does current income come into play anywhere? I lost my job in early November, so current income is about $2000 less right now than it was in previous months... all I know is that I don't know much and that we can't keep up with our bills and it's absolutely exhausting and numbing..

[liz417]

Hi,

Okay, yes the plan is based on the IRS Standards/Allowences, but if your expense exceeds a certain area, just save your receipts and show your trustee. For example: my hubby commutes over 130 miles per day, when the gas prices were at their highest ($4.75 per gallon), we were spending WAY MORE than the 'allowable' expense, like $500/month on gas alone! If the Trustee questions that expense, I've saved all receipts. Sorry to hear about your job loss (seems like a daily topic here on this board... ) anyway, they are going to average out the last six months, so the longer you can wait to file the better, plus it will help you qualify for a ch 7. Let the creditors call...if you have no garnishments, judgements (those take time, so don't worry), then hang in there and PLAN this bankruptcy. Also, interview at least 3-4 different attorneys, find out if they will take your creditor calls until you file, we retained our attorney in mid May and he takes all my calls, my home phone is quiet now....

good Luck and take a deep breath

[havefaith]

Thank you, Liz417!
I am searching for another job and will take something making less money if I have to; I don't know if I'm going to be getting unemployment and don't want to be at home for 3 months without a dime and knowing that we're not paying our bills. Without 2 incomes we can't pay mortgage, etc.. Anyway, we shall see what the lawyers say. We do have 2 appts with two different attorneys set up for next week. I read somewhere that a Ch13 can be converted into a Ch7 down the road.. any experience with that anyone? Thanks!!