I am currently about halfway in paying my Chapter 13. I have paid all
the secured debts, now starting on the unsecured. How are these paid?
Does each receive a small monthly amount, or are they paid one at a
time?

Gary

On Sat, 27 Dec 2003 22:56:56 -0600 (CST), GARY <GARY35619@webtv.net> wrote:
: I am currently about halfway in paying my Chapter 13. I have paid all
: the secured debts, now starting on the unsecured. How are these paid?
: Does each receive a small monthly amount, or are they paid one at a
: time?

Your trustee will take his percentage from your payment and then cut
checks to the unsecureds with what's left in an amount that's
proportional to each one's allowed dividend vis-a-vis the total
allowed unsecured dividends (i.e., pro-rated)(but not more than the
unpaid balance), where the "allowed dividend" is =
(total allowed unsecured claims @ the ch 13 plan dividend)


Ex:

20% Plan dividend
$1000 Total allowed unsecured claims, 2 claims
$750 claim creditor A ( $150 dividend )
$250 claim creditor B ( $50 dividend )
$10 Plan payment (not a confirmable payment given the scenario
but it's my ex :)
0% Trustee fee (this really is a simplified example...)
all claims with > than unsecured priority have been paid but
no unsecureds have yet been paid

Your first $10 payment hits the trustee. Creditor A has 75% of the
allowed unsecured claims, B has the remaining 25%. Trustee cuts a
check for $7.50 to A and $2.50 to B.

Generally, each receives a small monthly amount. Sometimes, smaller accounts
will be paid in full; it depends on your local practice.

--
Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@erols.com *
* http://www.erols.com/lawyer *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only. It isn't
meant to be legal advice and you shouldn't treat it as such. If you want
legal advice, speak with a local lawyer familiar with your state's laws who
can review *all* of the facts and the law applicable to your situation.
************************************************** ***************


"GARY" <GARY35619@webtv.net> wrote in message
news:11769-3FEE6298-48@storefull-3193.bay.webtv.net... I am currently about halfway in paying my Chapter 13. I have paid all the secured debts, now starting on the unsecured. How are these paid? Does each receive a small monthly amount, or are they paid one at a time? Gary