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Stressed over 100% issues

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    #1

    Stressed over 100% issues

    I’ve been in 100% since 08/2025 and got lucky one $25k debt didn’t actually put a claim in. All others did.

    in my 100% I’m paying my mortgage separate and my student loans were to be separate too. My wife has since lost her job and our income is 2/3 of what it was but I didn’t want to mess with the 100% plan as I’m able to cut corners and make payments. I’m the only one that claimed.

    i noticed on ndc the largest payments were being made to my student loans and I wanted to make sure I was still 100% and not needing to give up tax refund.

    im currently paying 2070 a month and 60months in Michigan. I have 76k in student loans that made a claim and 87,561 that made a claim for credit cards. My 13 plan stated I’m 100% and all refunds for taxes were mine. I don’t want to lower to less than 100% because I will probably be more behind because I was scavenging by until my refund came hoping to have some cash on hand once it came to pay for things around the house that need to be cleaned up in the spring.

    over 60 months I’m expected to pay over 124k and I’m not sure what to expect when I finally hear back from my lawyer. I haven’t spent my refund but I’m just annoyed that I might not be 100% for some reason anymore and figure I mine as well try to adjust for wife not working now.

    sorry for long rant, the lady I spoke to had no idea what the trustee was doing
    Tags: None
    #2
    Welcome to BKForum.

    I don't know why anyone would remain in a 100% plan with a 33.33% reduction in income. Have you spoken to your attorney. You are throwing money away. There is no benefit to paying 100% unless you are required to pay 100% due to the outcome of the best interest of creditor's test.

    Or, do you have some tangible benefit from this? I don't recognize any.

    As for how the trustee makes payments, typically you cannot make payments to unsecured creditors outside the plan. (You'd need a very good reason and nearly everyone can't articulate a good reason.) The Chapter 13 trustee will pay the allowed unsecured claims pro-rata. That means that, based on your numbers, the student loan creditor gets about 50% of every payment to the unsecured creditor pool. In other words, they are the largest creditor and will receive the largest portion of the pro-rata payments. Additionally, we never question how, when, where, and to whom the trustee pays. But we do recognize that it will always be pro-rata to the unsecured creditors.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    I am not your attorney. Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment

      #3
      I have quite a bit of equity in my house which is partially why I was at 100%. I sent my paystubs to my lawyer (or the person i talked to on the phone) and she was going to “run the numbers”. I don’t mind a less than 100% plan but I was making it work and figured I’d be ok. If I’m not at 100% anymore though and they take the tax return I’m going to have to have them re-run and hopefully get a smaller payment. I was also told that my 5 year plan might be less because 25k didn’t register a claim lowering my entire amount. So I was hoping for 50 months instead of 60.

      Comment

        #4
        That best interest of creditors test is what hurts you here. It reads as though you have unprotected equity (> $250K) in your homestead which is driving the 100% plan. If that equity would cover a 100% payback, then you'd have no choice but to pay 100% even if your income doesn't support the payments.

        Certainly work with your attorney's office, but the big thing is going to be whether you MUST be in a 100% plan because of your earnings, or is it solely because of your unprotected equity.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        I am not your attorney. Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

        Comment

          #5
          Originally posted by justbroke View Post
          That best interest of creditors test is what hurts you here. It reads as though you have unprotected equity (> $250K) in your homestead which is driving the 100% plan. If that equity would cover a 100% payback, then you'd have no choice but to pay 100% even if your income doesn't support the payments.

          Certainly work with your attorney's office, but the big thing is going to be whether you MUST be in a 100% plan because of your earnings, or is it solely because of your unprotected equity.
          We only have about 99k /2 cuz the wifes interest in the home then the selling fees they wouldn’t get etc from selling and other things baked in.

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