Chap 13 Question?

I am considering filing chap 13 because I have about $200. disposable income after paying necessities. My question is that while in chap 13 I will have two loans paid off, one in about 1 year and the other in about 3 years. Will all of this new income go to the trustee or part of it? and how is this calculated.
Thanks for your advice.
Jim

[bigun]

First of all, have you seen a lawyer? You'll be much better off in a chapter 7?

Hopefully you can find some expense for that 200/month and file a chapter 7.

Are you sure your income to expense ratio leaves 200 a month? My older relative went in initially thinking it was going to be 700 a month and after the lawyer and trustee lowballed all the expenses, she ended up paying 1700 a month. This is more than half of her salary!!!

As to paying them off at different times. That is usually not how it works. The trustee will take your 200/month and divide it around. Your lawyer becomes a priority creditor and also any secured creditors become priority. They get paid off first. Then the rest of the unsecured creditors get thier money at subsequent trustee payments. I do not believe you have control of it. It is between your lawyer and the trustee to figure all that out.

The formula I used: assume you are paying 200/month for 36 months. That is 7200 dollars. Divide that by your total debt that will be distributed through the plan. Say 30,000 That makes 7200/30000= .24 or 24 percent. This means creditors will only get 24 percent of what you owe assuming you owe 30,000. Some trustees will go for it some wont and let you go chapter 7. That is why a lawyer is important to have.