Chapter 13 payments

[Lieerh]

So in a Chapter 13 100% plan I have 50k debt just to CC’s unsecured. My atty said I would pay roughly $1k a month for 5 years . Which is 60k . Is that it works? Or do I have to use all of my disposable income ?

[justbroke]

Welcome to BKForum.

You will pay the Trustee a 10% commission so you're at $55K already. Your residual attorney fees are likely about $4.5K so let's just call it $5K. You're already at $60K just with that. Over a period of 5 years, you will pay $1,000 a month for the 60 months. Sounds accurate to me.

Now, as for whether you'll be forced to pay your actual disposable monthly income (DMI) or just propose to pay $1K a month for 60 months is a bane of my existence. The bankruptcy code clearly reads that a person who doesn't propose the pay all allowed unsecured claims must propose a plan which surrenders the debtor's projected disposable income (PDI) to the Trustee for distribution to those creditors holding such claims. There is nothing that says that a person proposing to pay back all the creditors must pay their DMI.

So it is an argument. You can just argue with your attorney (and Trustee) that the code doesn't say as much. They will tell you things like "your plan could be done quicker" or "you really don't want to be in the plan the entire 60 months." Those are both true. But you don't need to do either if you propose a realistic 100% plan.

(Please note that I didn't calculate in any secured debt such as a home or motor vehicle. That will increase your plan payment if you are in a 100% plan.)

[Carmella]

Lieerh if you attorney is saying it will be about $1,000 a month I would assume it would be around that amount. How does that figure fit with your disposable income? Our house and cars were paid outside of the plan so they were not included in the payment amount, but of course we were required to pay them on time.