how do payments work?

[DUMBAGAIN]

I don't really understand how my payments will be disbursed? I've got the lawyer, the taxes, my car and the rest is unsecured. So would I be correct in thinking that the lawyer and the car split my monthly payment until the lawyer is paid off, then the taxes and the car split it until car is paid, then the split is between the taxes and the unsecured?

So the unsecureds waits a really long time to be paid?

Not sure if I'm looking at this correctly?

[HHM]

Honestly, it doesn't really matter as far as your concerned. Distribution is based on priority and the trustee.

The first funds go to your attorney unless the plan says otherwise.If you are including a car, then yes, your attorney and car would split the initial payments, then it would go to taxes and car, etc etc.

[DUMBAGAIN]

ok --I know it does not matter to me, I really just wondered. Thanks!

[rrockinggramma]

this is how it worked in the Eastern District of Michigan.

You pay in until confirmation. No money is disbursed until after that event occurs.

Then mine were paid out in this order.

The lawyer got all of his fee first
Then the car secured debt totally paid off in full
Then the IRS totally paid off in full (each of these occured after the one above it was paid off in full and with each monthly disbursement the trustee took his percentage)

Then the unsecured were paid in no specific order. However each were paid a percentage each month of what was owed depending on the funds there to disburse. Sometimes some of my unsecured got whopping payments of 6.00 but each month the percentage went from like 1 percent paid out to 5 percent etc. I ended up paying out 82 percent total because so few of my unsecured creditors filed claims.

But that was how it worked for me.

[DUMBAGAIN]

OK thanks! That explains why my money just seems to be sitting there.

[maddog2112]

If your looking at data center you will see your trustees cash on hand until he disperses it which in my case was at the beginning of every month.

[klandsb]

Are u given a due date every mth or is everyone by the last day of the month ???
And also on my proprosed plan it sts I would be mailing in the pmts and when I had talked to them they said it was "always" taken out of your paycheck ???

[DUMBAGAIN]

In our area, you have to do wage deduction, unless you have some "special" reason not to, like being self employed. The first payment I mailed in. I'm not sure when my paycheck deductions will start. You have to make your first payment within 30 days of filing. We filed on 8/28, now our payments are due each month on or before the 28th.