We filed!

[boomerkae]

The filing actually took place on 12/23. I received a letter from my attorney's office on 12/24 with my court dates, and payment plan. We ended up with a low payment - it was high, but after I reviewed my expenses, I needed to increase two and realized they had my daycare expenses off by half. That dropped the payment way down. It's just the beginning of a long 5 years (and I honestly can't wait to be garnished so I don't have to worry about making a late payment), but I feel like a huge weight has been lifted.

So now, a few questions.

I read a lot about % of payback. What does that mean? Is that just how much of the actual debt we will be paying, and if so, how do I know what that is? Do I just multiply my payment by 60 and divide by my debt?

When you had income changes, did you report them immediately? My lawyer advised that we would just show a new budget yearly. That seemed different from what I'd read here.

In my naivetivity, I though trustees were local. I'm in MD, my trustee's address is in TN. Does he really come to court up here? I guess then I could share a trustee with folks here not in MD?

[AngelinaCatHub]

The filing actually took place on 12/23. I received a letter from my attorney's office on 12/24 with my court dates, and payment plan. We ended up with a low payment - it was high, but after I reviewed my expenses, I needed to increase two and realized they had my daycare expenses off by half. That dropped the payment way down. It's just the beginning of a long 5 years (and I honestly can't wait to be garnished so I don't have to worry about making a late payment), but I feel like a huge weight has been lifted.

So now, a few questions.

I read a lot about % of payback. What does that mean? Is that just how much of the actual debt we will be paying, and if so, how do I know what that is? Do I just multiply my payment by 60 and divide by my debt?

When you had income changes, did you report them immediately? My lawyer advised that we would just show a new budget yearly. That seemed different from what I'd read here.

In my naivetivity, I though trustees were local. I'm in MD, my trustee's address is in TN. Does he really come to court up here? I guess then I could share a trustee with folks here not in MD?

Every journey starts with the first step. Grats. Can't help you a lot as I'm a C7 person, but Nolo Press has a great book downloadable for about 25 bucks. Get that book and it covers all areas you would wish to know. Also read ALL the 'stickies' on your c13 forum. That will help too. There are several that went C13 pro se, and they will soon chime in for your details. 'Hub P.s. Welcome

[enginegirl]

So now, a few questions.

I read a lot about % of payback. What does that mean? Is that just how much of the actual debt we will be paying, and if so, how do I know what that is? Do I just multiply my payment by 60 and divide by my debt? Pretty much! in the grande scheme of thing the % does not matter... most plans nowadays are 60 months or 100% which ever comes first! better to have a lower payment and actually have a livable budget than the other way around!

When you had income changes, did you report them immediately? My lawyer advised that we would just show a new budget yearly. That seemed different from what I'd read here.... It all depends on your trustee and how your plan is written.. I have to report all increases immediately and give all bonuses etc.. others do not.

In my naivetivity, I though trustees were local. I'm in MD, my trustee's address is in TN. Does he really come to court up here? I guess then I could share a trustee with folks here not in MD...... I am in FL, Trustee is in FL but all payments are sent to TN... this is basically a third party that handles the $$.. sometimes they are slow to post your payment .. but don't fret about it! ( my last payment was sent 12/15 it is still not posted....)


Tons of luck to you!

[LadyInTheRed]

The % payback usually refers to the percentage of your unsecured debt that will be paid after all secured and priority creditors are paid off. As enginegirl says, the % doesn't really matter. Here's a sticky on the topic: http://www.bkforum.com/showthread.ph...doesn-t-matter)

[boomerkae]

Thanks everyone. After I posted I went back and re-read the sticky on % - made a little more sense this go round.

[kornellred]

I am three years into my Chapter 13 and only recently came to understand the whole "payback percentage" issue.

There are several different types of Chapter 13 plan. I can only speak about my own, which is called a "pot base" plan (yes, that it what it is called!). The base amount is my DMI multiplied by 60 - the number of months in the 5 year plan. I have no secured or priority debts in my plan, so 100% of the money goes to unsecured creditors. The base amount of my plan is nowhere close to the amount of money that the creditors allege that I owe. It is actually closer to 20%, plus or minus 1. The trustee divides up the money among the unsecured creditors who have filed a claim (they all did).

There are Chapter 13 filers who actually pay back 100 percent of their unsecured debt. If the disposable income is there, that is what will happen. Such cases involve complexities that I cannot even begin to comment on. I'm glad it's not me!

[lrprn]

I read a lot about % of payback. What does that mean? Is that just how much of the actual debt we will be paying, and if so, how do I know what that is? Do I just multiply my payment by 60 and divide by my debt?

Others have already responded about this question of yours, so I'll focus on the others.

When you had income changes, did you report them immediately? My lawyer advised that we would just show a new budget yearly. That seemed different from what I'd read here.

Everything depends on your particular trustee's instructions and usual customs. That's why you'll see different answers depending on the threads you read.

If your lawyer states you will be providing a new budget to the trustee yearly, that could be the custom in your local court. I suggest that you contact your bk lawyer to go over how your local trustee is to be notified about significant income increases again so you'll feel comfortable knowing the right thing to do in your case.

In my naivetivity, I though trustees were local. I'm in MD, my trustee's address is in TN. Does he really come to court up here? I guess then I could share a trustee with folks here not in MD?

You aren't naive at all - your trustee is located in MD and handles MD Ch 13s only. Many Ch 13 trustees across the country have their plan payments sent to a payment center in TN. We live in the midwest, and our Ch 13 payment goes to a mailing address in TN as well.

[boomerkae]

You aren't naive at all - your trustee is located in MD and handles MD Ch 13s only. Many Ch 13 trustees across the country have their plan payments sent to a payment center in TN. We live in the midwest, and our Ch 13 payment goes to a mailing address in TN as well.

Thanks - after I received my paperwork from the court, I saw a new name - the name for my trustee. Thanks for replying!