Trustee's Fee % Increased.

[tigergem]

At the time of my filing the trustee's fee was 6.4%. The previous standing chapter 13 trustee was "terminated" on 1/4/10, and there is a new one. Now I just happened to see in NDC that the trustee's percentage has increased to 9%.

Does this affect me?

[HHM]

It shouldn't. The trustee fee simply comes off the top of whatever payment you are making. The trsutee fee is not in addition too the payment you make.

[tigergem]

Yeah, I know it doesn't affect what I pay in. I am just wondering if it affects the amount payable to unsecured creditors? I mean, if they increased the fee after the date of my filing, does it even change?

[justbroke]

This is why many Districts, including mine, require the Debtor/Attorney to allocate 10% of the Plan payments to the Trustee. This is specifically so that there is no need to even worry about modifying a confirmed Plan to change the Trustee percentage.

Since the Trustee fee is considered part of "debt service", any increase in Trustee fee/payment represents a corresponding decrease in unsecured creditor payments.

[tigergem]

Oh. Ducky. Well. I didn't do that. (10%) But there were a bunch of little things that the trustee wanted me to change on my schedules... including a less than $5.00 difference in my monthly expenses, and she never mentioned this.

I am just wondering if that means I get to stick with the percentage that was in effect on the date of my filing? Or if they are going to make me amend the plan to reflect this increase? Am I incorrect to assume that the trustee will give me notice of this if it needs to be changed?

[justbroke]

If they didn't have you change it to the "fixed" rate, like they do in Florida (at 10%), then wait until they do. Since I'm in a 0% plan (paid to unsecured creditors), my Trustee has no way to get "extra" money unless my plan is modified. Can't just take it from the unsecured pool.

[tigergem]

Well there is a wee tiny bit going to unsecured creditors in mine. Percentage wise it says 1%, but I think it is actually less than 1% of the unsecured debt total. So they have that much play room in there. I haven't done the calculation to see if that is enough to make the difference between 6.4% and 9%. Maybe it is.