Trustee Fee Question

[eltaur2000]

Does the trustee fee have to be a certain percentage?

Let's say that your DMI is gobbled up by secured debt and lawyer fee's.

Will the trustee take anything that's left or does there have to be a certain percentage left over. ?

[LadyInTheRed]

The trustee gets a percentage of your plan payment. The percentage varies by district, but it is never more than 10%. It looks like it's 5.1% in Illionois: http://www.chi13.com/

For a plan to be feasible, the plan payment must be enough to cover the trustee fee, plus any other minimum amounts that must be included in the plan (attorney fees, secured debt payments, value of non-exempt assets, etc.)

[eltaur2000]

The trustee gets a percentage of your plan payment. The percentage varies by district, but it is never more than 10%. It looks like it's 5.1% in Illionois: http://www.chi13.com/

For a plan to be feasible, the plan payment must be enough to cover the trustee fee, plus any other minimum amounts that must be included in the plan (attorney fees, secured debt payments, value of non-exempt assets, etc.)

5.1 percent of my dmi?

Non- exempt assets are the things I still owe... Like best buy and he room place furniture?

[AZNoName]

Mine is 10% (10% of the entire payment itself)

[LadyInTheRed]

5.1 percent of my dmi?

No. 5.1% of the amount distributed to creditors. After all is said and done, it's the portion of your DMI that does not go to your attorney or secured or unsecured creditors.

Non- exempt assets are the things I still owe... Like best buy and he room place furniture?

Non-exempt assets are any assets you own that do not fit within your state's exemptions (or federal exemptions if you can use them). For assets that are security for loans, you only need to exempt your equity in the assets.

[eltaur2000]

No. 5.1% of the amount distributed to creditors. After all is said and done, it's the portion of your DMI that does not go to your attorney or secured or unsecured creditors.



Non-exempt assets are any assets you own that do not fit within your state's exemptions (or federal exemptions if you can use them). For assets that are security for loans, you only need to exempt your equity in the assets.

Confused....

So if my DMI is $600 but 400 goes to a car payment and $116 goes to my secured creditors. That leaves $84.00 I say about $30 to cover my attorneys fee's That leaves $54.00.
They get %5.1 percent of what is my question?

[LadyInTheRed]

Confused....

So if my DMI is $600 but 400 goes to a car payment and $116 goes to my secured creditors. That leaves $84.00 I say about $30 to cover my attorneys fee's That leaves $54.00.
They get %5.1 percent of what is my question?

Well, 5.1% of the $516 to secured creditors is $26.31, but part of the $54.00 will also go to unsecured creditors and the trustee gets a portion of what goes to unsecured creditors too. It's what they call an interrelated calculation and I don't know how to do the math.

ETA, if you are trying to decide how large a car payment you can have, you don't want to cut it so close that the trustee fee will make any difference. Be conservative in your purcahse. See the comment I just posted in your other thread.

[AZNoName]

My total payment over 60 months will be 59K. My trustee takes 10%, so their total portion will be 5900 over the 60 months.

Its my understanding if your secured payments eat away at the rest of your DMI, then your payment will increase to cover the administrative costs of the attorney and trustee.

Is that correct?

[LadyInTheRed]

My total payment over 60 months will be 59K. My trustee takes 10%, so their total portion will be 5900 over the 60 months.

Its my understanding if your secured payments eat away at the rest of your DMI, then your payment will increase to cover the administrative costs of the attorney and trustee.

Is that correct?

No, your plan payment is supposed to cover trustee fees too. Your trustee will get less than $5900.

ETA. I just re-read your quetsion. The plan you propose has to include enough to cover the secured payments and the administrative costs. If your plan payment is not high enough to do that, your plan is not feasible and you have to adjust your budget to show enough DMI to propose a feasible plan. Either that, or you have to give up some of those secured assets.

[kornellred]

My trustee's percentage has changed quite often over the 4 + years I have been making payments. Usually, it has only been a few tenths of 1 percent up or down. I have forgotten the exact number, but Chapter 13 trustees are not allowed to earn more than $320,000 per year from their work as a trustee. Most trustees in high bankruptcy states are servicing thousands of cases, and they have to pay their staff and office and administrative overhead from the fees that they extract from those cases. I think my trustee has to constantly adjust the percentage he takes so that he does not end up earning too much!