Question about payment to the trustee

[sophie]

When you make your payment to the trustee every month, what exactly does that mean? Are all your bills included in that or is it just the trustee's portion, i.e. just the amount alloted to the trustee?

[quietsound]

payment to the trustee includes.........the trustee portion, lawyer portion and the actual chapter 13 plan with whatever creditors your paying back that is listed in your plan

[sophie]

Guess I'm just being stupid but when you say actual chapter 13 plan is that only the cc's that we owe (that's all we owe) or is that all bills, ie. utilities, mortgage, insurance? Also, you say lawyer. You mean the $$$ we owe our lawyer will be included in that? That would be great news! He never mentioned that! We've received bills from him and I've only been paying him a tiny amount (all I could afford). Should I not pay him anything more at this point and let that go into the plan?

[quietsound]

i can only tell you what my plan is, my plan covers the trustee payment (his cut, my lawyers cut of $2800, my unsecured credit card debt, my car payment,..........mortgage, utiilties, student loan, etc are not in the plan....but you need to check with your lawyer. fees to file are extra and are not included in the plan.

[sophie]

Thank you for your help.

[lrprn]

When you make your payment to the trustee every month, what exactly does that mean? Are all your bills included in that or is it just the trustee's portion, i.e. just the amount alloted to the trustee?

The monthly Ch 13 payment to the trustee typically covers:
* A % that goes to the trustee to pay for his/her handling of your case (this % varies by district/state)
* A % that goes to your Ch 13 lawyer to pay off what you still owe to him/her when you file
* If your plan includes the trustee paying your loans for secured assets (home mortgage, car payments, etc), these payments are included as well (although car payments typically don't equal what you actually pay/month now - these payments are usually stretched out over the life of your plan so the car(s) will be paid off when your plan ends)
* Whatever % goes to paying your non-secured creditors that indicated they wanted to be paid when you filed

The trustee disperses payments to himself and your lawyer first, then the secureds, and lastly the non-secureds when and where he/she wants. Most trustees tend to disburse payments out on the last day of every month.

Once you have filed, the trustee "owns" your financial life for the duration of your plan. Your plan specifically states whether you will make your home mortgage payment yourself or your car payment(s) yourself "outside the plan". If you aren't sure whether you are to make payments yourself or if the trustee is making them, ask your lawyer to clarify this for you immediately!

You are still responsible for paying for everything that is not paid "inside your plan"by your trustee - that includes paying your living expenses, utilities, etc.