Typically, which creditors get paid first? My attorney and the secured creditors will get paid first, correct? I am going to be paying a total of 27K over 5 years (my monthly payment * 60). My secured creditors and lawyers fees total approximately 15K. Would any remaining amounts then be paid to unsecured creditors equally? I'm wondering mostly how the student loan (being paid inside 13) will be handled. Obviously, I would rather the trustee pay the student loan first, since it can't be discharged, but doubting it works that way. We have had our 341, but not confirmation.
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4THEBoys that's an interesting question, and I think you'll find it goes all over the place...with us (my spouse is in a 13 which means we both are :-) IRS and mort arrears get paid first. -
Yes, the order of payment varies. Unsecured creditors usually get paid last and are paid proportionately according to the size of each debt, but some have reported small amounts going to their unsecured creditors every month. Your student loans may not get paid at all. They may just go into forebearance until you are done with your plan. That will vary by district. Your attorney is the best one to tell you how they will be handled in your plan.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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