100% Payback - How Does It Work?

[ameangreenbe]

In brief, after all the expenses the Trustee would consider "reasonable and necessary" are deducted, I still can pay 100% of my debt (if that amount is spread across 60 months). I simply got behind on my payments and want to dump my upside down house.

Let's say the I make 8000 a month and all my debt (secured and unsecured) equals about 2000 a month in payments. Does the Trustee simply say "OK" do with the remainder as you wish? Would the Trustee demand a 36 month plan?

Thanks!

[sharina]

100% plans are supposed to allow for more leniency. BUT it simply confused our lawyer and technically, we should have been allowed a lower payment, but we will finish the plan much earlier this way. we are putting off lots of home repairs and drive old cars, so we simply cannot wait for this to be over.

The plan is supposed to be 100% OR all disposable income, but you'll have to see what a lawyer in your area says about what is customary.

[ameangreenbe]

Sharina,

How long is your plan? Were you given an option at all to stretch out the term so your payments were less? Thanks for the reply!

[sharina]

My plan is set up for 60 months, BUT the amount owed to creditors will be done in 38 months. My lawyer did not propose plan to stretch it out, but we also filed with a change of circumstances for income. They did not use our 6 month lookback or our payment would have been absolutely absurdly high.

If I'd have know what I know now, I may have done it differently, - after a year and a half in, I must say it feels like a jail sentence. We have never lived the high life - just got caught up in high interest credit cards and now we really feel stymied with our 13, though we do not live like paupers, but sometimes when things break down and we are driving cars with 150,000 miles on them, it sure feels like it.