% Payback (it doesn't matter)

[Cgriswold]

See, I think you hit on the reason that the % DOES matter, in my tiny little mind...you said "so long as the percentage to unsecureds is still maintained"

If I am following my plan to the T and the trustee receives 100% every penny, nickel and dime...it seems to me that whatever changes in income/expenses "outside" the plan that I encounter should be ok, "so long as the percentage to unsecureds is still maintained"

yet i read again and again from the vets on this board that even in 100% plan ALL dmi should be turned over to the trustee. that just makes no sense to me. Unless i come across a substantial windfall that is going to allow me to pay of the plan in full tomorrow, why would I want to, hypothetically, turn over my 12% per month change in income or my $300 per month reduction in outside the plan expenses if those changes could, in fact, make it EASIER for me to complete the plan as agreed upon in my confirmation. It seem antithetical to the reason for being in a 100% 13 in the first place! IMHO.

Cheers,
C

[tigergem]

This is the way I understand it, cgriswold. You can only be in a 100% payback because your DMI is sufficient to allow for it. But if it looks like (hypothetically) 140% is getting paid to the trustee over the currently confirmed number of months, due to your income tax refund, or an increase in the monthly plan payment amount due to a raise, then you should be able to amend your plan to reduce the number of months, so long as the percentage to unsecureds is still maintained. If you do nothing to amend your plan, then I reckon the trustee will refund you any amount you have paid in that exceeds 100% of the claims upon completion of your plan.

In a 100% plan, I would definitely motion to retain and spend the income tax refund due to unexpected necessary expenses. I was able to do that, and my payback percentage to unsecureds is less than 1%. I fully expected the trustee to object, but he did not. But to receive that latitude, you do have to ask for it.

I hope that is clearer than mud. Good luck!

[Cgriswold]

Ok, this sticky thread has ALWAYS bothered me and maybe that is because I am in a plan that provides for me to pay all unsecured claims 100%

How can the % NOT matter? I am paying back every nickel claimed. should I not be afforded some latitude with regard to tax refunds, raises, etc?

if my plain dictated a 0% or 5% or 55% payback over 5 years, sure...I get it that the % really doesn't matter because I would not be satisfying all claims in full and so ALL my DMI should go to the plan. I can see where my DMI should be "scrutinized" and expected to adjust the plan. But if I signed up for paying back 100% already and the plan over 5 years works as confirmed and I am bound to said plan...the % does somewhat matter?

No? I am ready to be called an idiot. Go.

[janland]

Hi thanks for the info. this was truly for a friend- I'm doing a 13... She needs to get the free credit bureau reports and see what's up. I would think it's on the reports.

[justbroke]

Hi just curious on chapter 7 IF it is a non deeded time share- would this executory contract appear anywhere, let's say on a credit report? i.e. tracking. thanks

Most executory contracts don't show up on credit reports. Unless you owed money on this "right to use" timeshare is not paid for, then you will probably have some sort of promissory note and that would be reported.

Why do you want to know this anyhow?

[janland]

Hi just curious on chapter 7 IF it is a non deeded time share- would this executory contract appear anywhere, let's say on a credit report? i.e. tracking. thanks

[janland]

Probably best to just surrender the timeshare. Also, timeshares are treated differently amongst the States. It could be an actual deeded real estate or just an executory contract.[/QUOTE]

Hi just curious on chapter 7 IF it is a non deeded time share- would this executory contract appear anywhere, let's say on a credit report? i.e. tracking. thanks

[justbroke]

I just read the question from Jaxx1369, and it sounds like I may end up in a similar situation. If the full amount of the unsecured debt for which proofs of claim have been filed is paid off before the 60 months is up, couldn't the plan be modified to either reduce the plan payment or apply more of the payment to the secured debt?

It would be a pain to go for a modification, unless it's significant. For example, if it only reduces plan payment by 1-3 months, it's not worth the process of modification. If it's significant, then you could go for a lower payment.

However, not all Districts are clear on 100% plans not requiring 100% of the disposable monthly income (DMI) paid each and every month. Most Trustees prefer that you pay the DMI, even if it's a 100% plan and you will pay off the plan much much earlier.

[greenthinker]

Yes, it will continue until it's 100% of the allowed secured claims, or the 60 months elapses, whichever comes first.

I just read the question from Jaxx1369, and it sounds like I may end up in a similar situation. If the full amount of the unsecured debt for which proofs of claim have been filed is paid off before the 60 months is up, couldn't the plan be modified to either reduce the plan payment or apply more of the payment to the secured debt?

[enginegirl]

I"m getting ready to file a chapter 13. Because of my income, I'll pay back 100% of my debt over 5 years. If I'm paying 100% already, does that mean my payment will not go up if I get a bonus or a raise?

you asked this already... the answer is NO... it shouldn't go up!
Good Luck!

[TrackDog]

I"m getting ready to file a chapter 13. Because of my income, I'll pay back 100% of my debt over 5 years. If I'm paying 100% already, does that mean my payment will not go up if I get a bonus or a raise?

[justbroke]

My question- I am in a 5 year plan and at my current payback payments I will have paid back the 62K of "principal owed" in about 36 months-what happens after I reach the 63% payback- do they just get a higher percentage and I continue until I hit 100%?

Yes, it will continue until it's 100% of the allowed secured claims, or the 60 months elapses, whichever comes first.

[Jaxx1369]

My CH 13 was confirmed on 3/8/2010. In my plan 11K is a Priority claim to the IRS at 100%. I also have 150K in Unsecured that is listed as a 63% payback on my data center account. 60K of the Unsecured did not file a proof of claim as of Nov 1 2010. My account shows the "principal owed" as 62K total (at the 63% percent payback). My question- I am in a 5 year plan and at my current payback payments I will have paid back the 62K of "principal owed" in about 36 months-what happens after I reach the 63% payback- do they just get a higher percentage and I continue until I hit 100%?

[tigergem]

We are in a chapter 13 paying 100%. We started in May 08 so we are almost 30 months into the 60 month plan. In the last year we received guardianship of our granddaughter, in Sept my husband lost his job which cut our income in 1/2, now the cost of insurance is really high. I know that we can not continue the current level of payments. We own property but with the crash of property value would have to do short sales. Have 401k have paid the only secured debt off. I am calm right now but panic is starting to set in. We can not continue at the level we are now. what will happen?

I don't know what will happen, because my crystal ball is fogged up. But what should happen is amended schedules I and J and a motion to modify your plan. Call your attorney.

[lorine]

We are in a chapter 13 paying 100%. We started in May 08 so we are almost 30 months into the 60 month plan. In the last year we received guardianship of our granddaughter, in Sept my husband lost his job which cut our income in 1/2, now the cost of insurance is really high. I know that we can not continue the current level of payments. We own property but with the crash of property value would have to do short sales. Have 401k have paid the only secured debt off. I am calm right now but panic is starting to set in. We can not continue at the level we are now. what will happen?