Late fees...

[HARLEEBB]

Hello,

I met with a BK lawyer a couple of weeks ago and was armed with many questions after reading these forums!! He told me I must have done my homework because most people come to him with no idea of how a BK13 works! So thanks!!

One quick question...I am going to file around October 13th (thank God it's not a Friday!) and was wondering about the late charges/other fees that will acrue on my credit cards now that I am not paying them. Do I have to pay back all fees and late charges that show as part of the balance of the cards? I am paying back 100% and each late fee etc. ups my balances. Just curious as my payment will be big enough without adding on all these fees. I have about 15 cards so as you can guess, these fees will quickly increase the balances and the payback amount!!

Thanks

[HHM]

Whatever your outstanding balance is on the day you file (including any fees and charges) is what you will pay in your chapter 13 (plus any interest that the trustee allows to accrue during the chapter 13 plan).

[HARLEEBB]

I see so...

is it normal that the trustee allow interest to accrue during the 5 years? That can substantially increase the payment the lawyer has figured out which is going to choke me as it is. I can't breathe....

[HARLEEBB]

I read a few posts...

Is the interest accrueing a secured versus non secured thing? Interest accrues on secured but not in "non-secured"? My only debt is credit cards...nothing else. My car I will continue to pay outside of the plan.

Thanks....

[busby]

I also think that even if interest and fees continue to accumulate on some claims - your plan can't last more than five-years and your payments can't be more than what's left after your income minus expenses are calculated.

And once your monthly payment is calculated then it can only change with a trustee's recommendation and courts order - which gives you and your attorney opportunity to object. From what I understand - modifying your plan payment (once confirmed) is only done because your income increases or decreases but not because fees and interest have increased your claim amounts.

I wouldn't worry about it - bankruptcy is designed so that you can pay only what you can pay so it's not like you're dealing with the credit card companies - they're forced to accept what your attorney and trustee come up with - and the court approves but nothing more.