In a CH 13, if I have to pay back 100% of debt, would that include all late fees and increased interest rates that go into effect after not making monthly minimum payments, or do I pay back the actual money owed at the time of default on the cards?
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Go to the thead titled % of payback it doesnt matter sticky. It will answer some of your questions. I have read it a few times and if I am clear on it the % of payback is determined by your DMI (disposable mthly income) not really how much u owe to each creditor. If you are on a 100% plan doesnt mean u are paying 100% of what u owe to the creditor but that you are paying 100% of your mthly DMI...
IF I am wrong someone out there pls correct me !!!
.....Its all a little cofusing to us newbies
Those who live in glass houses should not throw stones
Chapter 13 filed 10-21-09
Discharged 4-13-15
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No, 100% plan means that you are paying 100% of your debt. This is when your DMI is so high that you can pay back all of the debt, a fairly rare case but does happen. So in that case, yes, added penalties and interest accruing prior to filing will hurt you, you will pay more to get discharged. The creditors can claim the interest as part of the balance owed, the CH 13 will just stop interest from continuing to accrue once you file.Filed CH 13 September 17, 2007
Plan Modified July 8, 2009 from $1100/month to $400/month due to change in income, finally discharged in July of 2013!Comment
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Thank You, this is important for me.Comment
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creditors are suppose to file only on the principal balance. It will be up to you to check the claims against your statements and make sure that creditors don't try to pump up the claim. Object if they do.Comment
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Does that mean actual principal minus all interest and late fees accrued since the cards inception, or actual principal at the time I default on the card. Would I look at the last statement before stopping min payments or the statement when I file CH 13?Originally posted by rrockinggramma View PostComment
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your principal balance at the time you file. they can not add on fees or interest once you file.Comment
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