Is it possible for your payments to equal more than your total debt???

[kgoo]

I wanted to ask a hypothetical question. Say the lawyer tells me my monthly payments for 6 years is $500/month. Well after 60 payments that would be $30,000!!! I only have $18,000 to claim

Is that even possible???

[AngelinaCat]

Hi kgoo, but are you sure you don't qualify for a Ch7? Have you talked to any BK attorney? If not, please schedule two or three free consultations and see what they have to say.

[kgoo]

Hi Angelina Cat

I have 3 free consultations over the next week. I'm not sure of my options yet.

[Mayo]

If everyone filed a claim you should only owe the claimed amount, plus lawyer and Trustee fees. In theory it could be a little more if it is a 100% payback. If you did pay over you should get refund when the plan is complete. I received around $700 refund on my plan.

[kgoo]

Thanks Mayo.

[keepsmiling]

Could be he had you in a 3 year plan.

[kgoo]

Thanks keepsmiling

I haven't met with an attorney yet but if I don't qualify for chapter 7 (which I'm preety sure I don't) I am over the median income and would be required to have a 5 year plan I believe.

[kornellred]

If you have the financial means to pay your entire debt, you will be required to do so. Your attorney will submit a Chapter 13 plan that will get the debt paid off in either the shortest amount of time possible, or stretch the time period for repayment out in order to reduce the monthly plan payment amount. Whatever makes the most sense and has the greatest chance of successful completion.

[SMinGA2]

a) the payback amount may be including things you are not considering - such as some districts have you pay car loans thru the plan
b) if your DMI is enough for 100% payback to unsecured, and you paid off all claims before 60 months, you'd be done early

The amount you pay also includes attorneys fees (most don't pay the attorney in full/up front) and the trustee would get a %.