% Question

[Freddy03]

I see that some people have in their signature's 0% paid back to unsecured creditors and some have 100% paid back.

I am not sure what that means. Who decides what % gets paid back?

Thanks

[987654]

It depends on your income to expense ratio. For your plan, you'd start by listing your income, subtracting your allowable expenses (food, gas, childcare, etc.), and that leaves you with the amount of money that can be paid under the plan. The first creditors to be paid are your secured/priority ones, i.e. your mortgage, car loans, any back taxes/child support, etc.

If you still have money left, it goes to your unsecured creditors. The percentage depends on how much you have left...if you have enough left to pay your unsecured creditors off completely in 3-5 years, then you are in a 100% payback plan. If you have absolutely no money left over, then they will get 0%. If it's somewhere in between, then the payback is calculated based on what you can afford to pay...if you owe $20k in unsecured and can afford to pay back $5k over the length of the plan, then you would be paying back 25% to unsecured.

Of course I've simplified that, and there could be other variables, but you should get the idea

[usmccop]

It depends on your income to expense ratio. For your plan, you'd start by listing your income, subtracting your allowable expenses (food, gas, childcare, etc.), and that leaves you with the amount of money that can be paid under the plan. The first creditors to be paid are your secured/priority ones, i.e. your mortgage, car loans, any back taxes/child support, etc.

If you still have money left, it goes to your unsecured creditors. The percentage depends on how much you have left...if you have enough left to pay your unsecured creditors off completely in 3-5 years, then you are in a 100% payback plan. If you have absolutely no money left over, then they will get 0%. If it's somewhere in between, then the payback is calculated based on what you can afford to pay...if you owe $20k in unsecured and can afford to pay back $5k over the length of the plan, then you would be paying back 25% to unsecured.

Of course I've simplified that, and there could be other variables, but you should get the idea

Good explanation (I was going to respond, but you covered it well).

[SMinGA]

It depends on a few things. Such as your DMI and how much of it goes to unsecured. And then your plan length & how much $ in unsecured claims. Its really personalized.

Those with low payback to unsecured have a low DMI/plan payment and/or the plan mostly pays atty & trustee fees and secured debt like car loans, mortgage arrears.

It also depends on whether all your unsecured filed claims. Those who do file claims get a bigger % if others do not file claims.

[Freddy03]

Thanks -

Since I have about $118 DMI but not behind on mortgage and car - I'm thinking (praying) it's still possible for me to do 7.

I had another question -

I am behind on my property taxes (2 years) I was going to pay them with my income tax refund. I have until May to pay $1600.

Is this something that would push me into a 13?

And now since I'm not sure if I will get to keep my refund I'll have to see how I can pay the $1600 before May.

[SMinGA]

I don't see how that would push you into a 13. You should be able to claim 1/12 of your annual property tax & insurance bill as an expense actually.

If things should end up that you have to do a 13 - such as if some of your expenses get challenged - then the 13 would be able to pay the delinquent property tax. Might end up paying next to nothing else...