interest and penalties?

[drednm]

so how much $$ in interest and penalties can they charge while you're in CH 13 that you have to pay????

[lrprn]

so how much $$ in interest and penalties can they charge while you're in CH 13 that you have to pay????

While you are in Ch 13, your creditors are not allowed to charge you interest or penalties starting on the day you file. An exception is government student loans which are allowed to charge their prior-to-filing interest rate while you are in forebearance during Ch 13.

Now if you choose to reaffirm any of your secured assets, I don't know if the creditor can charge interest again after the reaffirmation is signed or not. Hopefully someone else here will know the answer to that.

[drednm]

thanks for the info......

[Interlaw]

While you are in Ch 13, your creditors are not allowed to charge you interest or penalties starting on the day you file. An exception is government student loans which are allowed to charge their prior-to-filing interest rate while you are in forebearance during Ch 13.

Now if you choose to reaffirm any of your secured assets, I don't know if the creditor can charge interest again after the reaffirmation is signed or not. Hopefully someone else here will know the answer to that.

This is not correct.

If your Plan is a 100% Plan, general unsecured creditors can be paid interest. Payments to secured creditors can, under certain circumstances, be paid with interest (although the interest rate may be able to be reduced). And in the case of all creditors, pre-petition interest and penalties will be included in the Proof of Claim.

This being said, some trustees don't ask for interest to be paid through the Plan, even if the creditor is entitled to it, unless the creditor actually asks for it...and most do not.

Brett Weiss

Maryland, DC and Federal bars
Member, National Association of Consumer Bankruptcy Attorneys

[drednm]

so the usual bull so I still won't know until they surprse me....with this particular trustee I'm sure there will be years of interest.....

CH 13 is SO UNFAIR in that all the programs are run differently.... Can you imagine what they can add on after 3 years on about 45K of unsecured debt?

and of course my worthless lawyer has never said anything.....

[aa06a47]

Unsecured creditors are not allowed to tack on interest and penalties from the point in which you filed bk. However, the trustee can provide payments of interest, however will generally not do this. If there was interest provided for, it would have been indicated in the plan.

Since your under the old law, a mortgage will receive the agreed to interest. A car loan interest rate could have been changed at the time and if you were upside down, the amount you were upside down would have been treated as unsecured debt. Again, look at your chapter 13 plan and see what it says.

[drednm]

but that's the problem.... I have never been confirmed after 22 months of this haggling and I have no information on this kind of stuff.... All I see is a BASE PLAN which say 100% but doesn't differentiate between unsecured and secured.... The stupid paralegal is supposedly gathering a payoff quote to get confirmed by the judge but I have no faith in this guy.... My base plan has TWO credit cards listed TWICE and he just can't figure it out.... It's been a week and he has nothing done.

The most obvious and simple things drag on endlessly and I'm sick to death of the whole mess.... Nothing moves anyone to do anything. All I want is to pay the goddamned thing off and have my life back....

[aa06a47]

My base plan has TWO credit cards listed TWICE and he just can't figure it out.... It's been a week and he has nothing done.

....

That in itself is not a problem. Check the nation data center (does your trustee subscribe?) or you can even do a query on Pacer and see if the creditor filed 2 claims for the same thing, then simply dispute it as a duplicate claim.

[drednm]

Yes I can access.... one claim is duplicated to the penny... the other is for different amounts but is obviously the same claim with the same account number.... The paralegal is trying to find my initial filing info !!! UNREAL... Inept lawyers, a ***** trustee, and I've lost all patience... I JUST WANT OUT.... PLUS on top of the whole mess, my 5-year reinvestigation for a clearance is in process and they are very interested in how I live paying half my incole to BK.... what a mess.... I could lose my job over this stupid and unnecessary mess

[aa06a47]

but that's the problem.... I have never been confirmed after 22 months of this haggling and I have no information on this kind of stuff.... All I see is a BASE PLAN which say 100% but doesn't differentiate between unsecured and secured.... The stupid paralegal is supposedly gathering a payoff quote to get confirmed by the judge but I have no faith in this guy.... ....

OK, let's talk a little about secured debt. There is long term (house and some cars these days) and short term (usually cars). The difference is only really if they last longer than the chapter 13 payment plan.

If they are included in the plan, (meaning you pay the trustee and the trustee pays them) then they receive priorty treatment at whatever terms are negotiated. (Real estate will be at your current rate / contract, since your old law, the car could be reduced).

As an easy example, let's say your payment plan comes up at 2000/month for 36 months. The trustee is making the car and house payment. Let's say your car payment (which will be done in 1 year is 500/month) and your house payment is 1500/month but you have 10 years left on it. So, the first year the house and car payment eat all the payment you make to the trustee. The secured debt for the car is paid after 1 year. After that secured debt is paid, then the trustee will start paying the unsecured.

Since you don't have a confirmed plan yet, there is no way to calculate your % payback at this time. Your payment has not been set, the trustee fee's are not set yet, etc.

I will say this, old law, new law, doesn't matter. If you pay prior to 36 months of payments, they will want 100% payback to unsecured creditors, plus the trustee will want his 5-10% (depends on the trustee). I seriosuly doubt your proposed original plan is a 100% plan to unsecured. Main reason is that the trustee wouldn't want to spend all this extra time on something that would not net the creditors anymore money.

[drednm]

well I guess that's what I'm I'm forcing them to say.... The online info on the base plan says 100%....

I have NO information of the real total, trustee fees, etc... almost 2 years and NO INFORMATION... it's absurd