TRCC: Reduction in payments?

[Fedor]

My plan base has changed due to many creditors not filing claims. So, should this normally mean that the TRCC will result in a reduction of monthly payments? We are paying 100% of claims, but technically, I guess this isn't called a 100% plan.

So, should this be a simple change? Base plan goes down 20%, so monthly payments go down 20%, stay on 60 months; is this how it works typically?

-- Fedor

[woeisme]

No, the payment is based on your disposable monthly income, not on how many claims you have. If you have more DMI then needed to pay off your plan at 100%, typically the CH 13 is shortened to less than 60 payments, not the monthly payments decrease. The reason for this is that lots of people drop out of CH 13, or have changes in circumstance over time, so the trustee would rather get as much money as soon as possible, meaning ALL of your DMI until you are paid off, rather than reduce your monthly payments and stretch it out over 60 months.