Promissory Notes

[drainout]

Hope someone can help me. I about to enter a chapter 13 in Tennessee. I owe my parents $20,000 amoung others. What I need to know is how a promissory note affects the payback precentage. Will a note force 100% payback or not. They need full payback either inside or outside of the 13.
The note states that I'll pay 400 per month. Is this what they get or would it be less? Also how long does the note need to be in effect. It was signed Aug., 15th. Thanks

[HHM]

Is the note secured by any asset or is it simply a unsecured promissory note.

If it's unsecured...it will be treated like any other unsecured debt.

So for example, lets assume you are going to pay $300 per month for 60 months into your chapter 13 plan...or total payments of $18,000. Now lets assume you have 2 credit cards, each with a $10k balance and this promissory note for $20K. In addition, lets say you have to get past car payment up to date to the tune of $1500, and lets not forget, you will pay your attorney $1500 in the chapter 13 plan.

$18,000...Total Plan payments
-$1500...Your attorney
-$1500...back car payments
-$1620...The trustee's 10%
= $13,380 left over after payment of priority claims.

Your Total unsecured claims are $40,000 (2 credits cards at $10K and the PN at $20K)

$13,380 (what is left for unsecured claims)
-$3,345 to Credit Card A. $10K is 25% of your total unsecured debt so they get 25% of what is available for unsecured creditors.
-$3,345 to Credit Card B " "
-$6,690 To the Promissory Note, $20K is 50% of your total unsecured debt)

The remaining balances on the credit cards and PN would be discharged at the end of your plan.