100% payback question

[jl37]

Good evening,

I've been a long time lurker on this site. It is an excellent resource!! I've spent countless hours searching through for my particular question. I do realize of course that everything varies from district to district and state to state but here is my question.

I have between my wife and I an approximate income of 120K. I filed seperately and was put on a 100% payback over 5 years. The payment proposed is 910.00 and the debt altogether including trustee fee and lawyer fee is around 55K. Another fact is that this is in the northern district of Illinois. My DMI is actually huge at about 3K but my lawyer mentioned that this particular trustee will normally allow for the payment as long as it covers 100% of the debt. Has anyone else in a similar circumstance been allowed to have such a large amount of DMI but payment which literally equals the totals over a 60 month period? Anyone in particular confirmed in Northern IL with a similar story?

I can't get my head around them allowing such large DMI and payment only 910.00. I've heard something about a case which was passed in Northern IL where they spelled out that the 100% disposable income only applied to non 100% payback cases but just wondering what people on here have experienced or think.

Thanks

[despritfreya]

Each case is unique in this regard and much depends upon your Trustee and the Judge, but, in general, if you are proposing to pay 100% of all allowed claims you do not necessarily have to devote all of your DMI. HOWEVER, it makes more sense to pay the amount you beleive you can afford (I get the feeling that amount is closer to $3,000/mo) as once you have paid all allowed claims your case is over. Why not be done with the case in less than 2 years?

[jl37]

Thanks for the reply. What I believe I'd like to propose is to finish the case in 3 years which will be about 1600 per month. In a 100% case can you actually propose through your attorney to do it in 3 years instead of 5? I know that technically due to my income I was automatically placed in a 5 yr plan.

Thanks again

[despritfreya]

The Plan can be worded as follows:

"Debtor shall submit $1,600.00 per month to the Trustee for a total of 60 months however, the Plan shall be deemed completed if all allowed claims are paid in full prior to the 60th month. It is estimated that all allowed claims will be paid in full by the 36th month of the Plan."

Or some language along those lines.

Practice pointer: Not all creditors will file timely claims.

[jl37]

Thanks. I'll speak with my attorney this week. However the 341 is a week from tomorrow. Would it be too late at this point? From what I understand in this district the amount in this case 910.00 would be likely to stand otherwise. My attorney told me I probably would not even talk directly to the trustee but to one of their assistants because I had a pretty simple straightforward case.

Thanks

[jl37]

Actually in my case I believe there are only 2 or 3 claims which have not already been filed so the amount is pretty mucu settled. I did have one creditor which I had believe to have been settled with the debt settlement company I had been working with until June. Other then that all but 2 have filed their claims.

[despritfreya]

Your Plan payment amount is not "carved in stone". You can always amend your Plan. Even if you don't there is nothing stopping you from paying more than $910 (but never pay less).