amount to trustee sounds high

[cookie1977]

First of all I have been looking on here for months and have gotten some great advice and thamks for that.

I am filing a chap 13 and talked to my lawyer's secretary today and she told me plan payment not including house and second mortgae was going to be $1520. She told some of the breakdown (I was on the phone with her) but what struck me was that she said that the trustee would get $500 a month out of that and I thought that was a little high. Can somebody please give me some insight cuz I thought they got a small percentage not a third of total payment.
Thanks again for all the help and after a lot of procrastination finally glad I have taken first steps.

[yak411]

Wow! That seems really high..did she read correctly? Could the trustee be getting his money upfront?

[cookie1977]

I'm not sure if they are getting it up front but $500 a month for 60 months seems like a whole lot for the trustee considering that they have a lot of other clients as well.

[cookie1977]

That's why I decided to post here because I know somebody can answer it for me. I seen something on here about what a trustee gets but didn't think is was 33%.

[lrprn]

Each state (and if the state has them, the state bk districts) sets a specific % that each Ch 13 trustee gets to keep as their administrative fee. For cases filed after March 17, 2008 the percent allowed across the US ranges from 2.8% to 10% - http://www.justice.gov/ust/eo/bapcpa...3_exp_mult.htm

Call your lawyer again and ask her to explain your payment breakdown once more. Also ask why your mortgage payments are going to be paid by your trustee instead of yourselves (not the arrears - the primary mortgage payment). That's not the way it's typically done in most districts because the trustee will take his/her percent out when making your regular mortgage payments as well.

[cookie1977]

Hi Irprn. Thanks for replying. First the amount I showed was without mortgages first and second. I am paying those outside the plan thanks to what I had read on here about the trustee getting a cut.

I thought that the amount was between 3 and 10% so of course I thought that was a little high. I was speaking to the paralegal but will try to get ahold of the lawyer today to clarify. Thanks for the help.