Dmi in 100% plan

[EKIMONE1]

Hello,

I was wondering if my wife and I have a DMI of around $1600 to $1800 a month, and it would only take $1200 a month at a 100% plan to pay back my creditors in 5 years would we be required to pay $1600 to $1800 or can the $1200 over the five years. I understand if we paid the higher amount we would be done sooner but is it required to pay all DMI in a 100% payback We have a total of about $71,000 w/ trustee and attorney fees included.

[SMinGA]

I think the trustee will require the full DMI be paid in. It gets you paid off sooner of course, but it also benefits the creditors (and trustee) in case things change in your financial situation down the road.

Go over your expenses carefully. Make sure you have covered everything. Such as medical: over the counter medicines, prescriptions, copays, supplies, etc. If you have not yet filed, discuss with your attorney things like increasing your 401k deduction slightly, decreasing deductibles on insurance, increasing life insurance.

Those are things you would not want to do drastically right before filing, but slight adjustments can probably pass muster especially if you will be paying back 100% anyhow. Your expenses may get less scrutiny due to your payback level.

[justbroke]

This depends on how the Trustee is feeling and how your attorney wants to fight. The plain reading is that you contribute your DMI in full during your applicable commitment period (ACP), unless you're in a 100% plan. Some Trustees take that to mean you contribute your full DMI to reduce the ACP, so you pay the full DMI over a shorter period. Other Trustees are okay with you paying only that portion of your DMI to get to 100% over the ACP.

I can see why a Trustee would want you to pay the higher total DMI over the shorter period, so that if something happens, the creditors would get something sooner should your case dismiss.

[aa06a47]

Just a question, if you have that much disposible income each month, and you can pay 100% pay back early, why did you file bk?

[justbroke]

Just a question, if you have that much disposible income each month, and you can pay 100% pay back early, why did you file bk?

I'm not answering for the other poster, but wanted to add this. There is really no better way to contain certain debt, than bankruptcy. Unsecured debt is immediately turned into 0% interest. No fees accumulate. It is extremely difficult, these days, to pay back unsecured debt especially with the 29.99% interest rate that is prevalent in the credit card industry.

Also, most people use Chapter 13 to save or deal with real property, personal property or tax liabilities. The unsecured credit discharge is just an added bonus.