Legal Question in Bankruptcy in Illinois

Amt to be paid monthly on Chap 13 seems 'funny'

nonexempt property = approx $15.5K Have been told

that we MUST pay ALL our disposable (after budget)

income. This = $750 mos. Lets take off the 10%

trustee fee off the top = $675 X 36 mos = $24,300.

The "Plan" states lawyer fee & $500 secured to be

paid off the top ($1,600 lawyer + $500 = $2,100) Now,

$24,300-$2,100 leaves $21,200 paid into the plan. BUT

the plan also states debters will get approx 20% of

their due. Since total indebtedness was around

$52,000 - lets say its even at $55,000 now with added

fees, 10% would be $11,000 - seems like there is an

extra $10,000 going SOMEWHERE? Should I have my

"plan" looked at by another lawyer? I feel like I

might be being taken advantage of here.


Asked on 7/24/00, 8:10 pm

2 Answers from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: Amt to be paid monthly on Chap 13 seems 'funny'

There is nothing wrong with having another lawyer look at it but if your current lawyer hasn�t explained it to your satisfaction he is not doing his job.

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Answered on 9/14/00, 4:57 am
Shai Oved The Law Offices of Shai Oved

Re: Amt to be paid monthly on Chap 13 seems 'funny'

Debtors in chapter 13 are required to commit all disposable income for a minimum of 36 months. Generally, if the amount paid in is greater than the percentage specified in the plan, the Trustee will file a Motion to Increase the Percentage to unsecured creditors which means they will probably get more than the original percentage. This is common.

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Answered on 9/18/00, 2:15 am


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