Payment changes question

[DUMBAGAIN]

I notice some of you say your payments went up/down after your hearing. We are just in the paperwork stage, but I'm calling my lawyer with a few questions. We have about 30,000, in debt, which includes the lawyer fees, he quoted me about 620 a month for 60 months, but that's a heck of a lot more then what we owe. Are there some other fees that I don't know about....

[outofluck07]

What?!

I'd talk to another attorney, or just pay the bills directly and don't bother with bk. If you're paying back 100%, what is the benefit?

[NowImDownInIt]

The benefit is in the protection... I would contact your attorney and have him or his paralegal go over how they got the payment amount for you.

[filingin08]

Find out what's included in the payment. I was shocked at our payment at first too... $1275/month... UNTIL, I realized it included both car payments (our trustee requires car payments be paid through the plan). Payment works out to about $250 more than we were paying on the cars.

[BigJohn]

There is also the Trustee's take.

[DUMBAGAIN]

We are paying our car out of the plan...and a student loan....I'm wondering how much does the trustee take, I'm really thinking this it not worth it in our case.

[Runtime Error]

i would do a serious evaluation of your financial situation and give a lot of consideration to not filing UNLESS you have no option. In addition to your normal bills, your paying the attorney out of that payment and the trustee. if you can swing the payments to pay the creditors 100%, then I wouldn't file.

Obviously, the benefits to filing are that you will actually be able to pay off those bills in five years because they become "frozen in time" (i.e. no late fees or additional interest) and if you are in jeopardy of losing your house, then the filing may help protect you. Otherwise, look at this very carefully and ask whether its ultimately worth it for you.

[aa06a47]

30K in credit card debt at say 24% annual rate (could be higher or lower but 24% is easy to figure out), the interest alone would be 600+/Month. So, you can file bk and pay 600/month and be paid off in 60 months, or 600/month and still owe 30k + in 5 years.

While 30k doesn't sound alot, hell, most cars /trucks are that expensive. The problem becomes the interest rate that the credit card companies charge.