New here - question about what's typically included in Ch. 13 repayment plan

[QuinnReilly]

Hi all, new here. Likely going to file Ch. 13 as I have an impending judgement against me from a creditor. Long story short, 2 years ago was just shy of 6 figures in CC debt and fell for a debt settelement company sales pitch. 2 years later, I have sent them more than $25k, they have settled 4 of my 7 cards (some for no less than what was owed) and payments are coming out of the account with them. Now I'm being sued for one of my highest creditors (20k) and the settlement offer would mean having to pay $900 more per month on top of the $1200 I currently pay - not possible.

I make $115k, own a condo and car, niether of which are behind on payments. I have slightly above average healthcare costs - average monthly prescriptions alone are $150. I have had a consultation with an attorney and he said he can do a calculation for $500 (I need to confirm if that would come out of the retainer if I move forward) before filing. He sent me the paperwork to fill out which I will do tonight. I did do the online calculator and I believe my repayment might be around $3600, which I can handle.

I assume my mortgage and car payment will be part of the repayment plan - are HOA dues typically included as well? I'm not behind on those either. I also have a lease to own agreement currently on an AC unit - will that be included? I'm just trying to figure out of what I have left each month, what else in my budget I will need to pay.

Very nervous about this process as I am single and have no savings. If my repayment is around $3600, that won't leave me much for savings which is the part that makes me most nervous - what happens when life happens and I have no money to work with? But I'll deal with that as it comes and just try to save as much as I can. I don't really have a choice.

Thanks in advance for any advice!

[flashoflight]

There is no hard and fast rule as far as whether your mortgage payments are direct pay or a conduit plan via the trustee. It is trustee and district dependent. If it is direct pay, your mortgage is direct pay except for arrears. If it is a conduit plan, you pay the entire mortgage and the arrears to the trustee. Other than the trustee fee for a conduit plan, it doesn't really matter if the mortgage is conduit or not. If the credit cards get $100/month, mortgage is $2k/month, and you are direct pay, you pay $2k to the mortgage directly and $110 to the trustee ($10 for the trustee fee). If the plan is conduit, you pay about $2300 ($2k+ 100 + 10% trustee fee or $210) which is a bit more. $2310 vs. $2110. But basically it's almost the same end result. The other thing to keep in mind about the mortgage is that even if it is direct pay, you have to treat it as if it's part of the plan payment. You will be denied a 13 discharge if you're behind on mortgage payments at the end of the plan and they will check for it at the end.

The amount you actually pay to the unsecured creditors will depend on your net disposable income after all allowed expenses whether paid direct or conduit. As a single person, your payment will tend to be on the higher side vs. a married with kids debtor who usually has more allowed expenses.

When I hired my lawyer, I paid the upfront portion of the retainer and then did the budget. I had a decent idea what my budget might be with my own calculations, but the lawyer did add his two cents as far as what would be allowed and what would not be allowed. My lawyer submitted receipts ahead of time for all controversial expenses. He's been around the block long enough to know what the trustee wants without being asked.