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02-08-2010 10:04 AM
02-08-2010 10:14 AM - edited 02-08-2010 10:15 AM
Any secured and priority (back taxes, government loans) debt included in your repayment plan will be paid back 100%. Unsecured debt will be paid back according to your remaining available disposable income -- which might pay 0% of that debt, or 100% of that debt. Some districts have a minimum 'dividend' to unsecured creditors, some don't. Where it exists, it generally is in the 10%-20% range. The percent payback really doesn't matter -- the entire debt is discharged as long as you've completed the plan as approved.
02-15-2010 05:15 PM
Just to clarify previous post.
BK is not a percentage of debt. It is based upon your ability to pay. You will go through a "means test" to determine if you are BK 13 or 7 case. If you have discretionary income after basics (shelter, food, utilities, etc.) then this estimated income is determined to make payments over 3 to 5 years. Whatever it pays is all it pays...everything left is discharged.
I would like to correct previous post. IRS tax liens and debts can be discharged through BK. I know many people who have done so. It will be almost always through BK 13 to require some payment, but this is not a percentage...it is based upon ability to pay.
In addition, the IRS will be considered "secured" by all non-exempt personal and real property and assets. So if you owed $25,000 to the IRS and had $25,000 in assets (non-exempt) then they will be considered secured by those assets. If you have more IRS debt than assets and income, then based upon the size of the debt and your income, a payment plan will be set up....unless the size of the debt is very substantial, in which case it can end up Chapter 7 on all amounts above the secured portion (the amount matched by assets).
02-16-2010 09:33 AM
02-19-2010 09:57 AM
In our Ch 13 BK, our auto loan was secured and was paid at 100%.
It was actually paid off earlier than the original loan schedule because of the way the payment plan was structured in the BK. We received the title to the car when we were still in BK.
Have you been able to visit with a BK attorney? They will be able to answer questions specific to your case, and will alleviate a lot of your fears. It's a frustrating process to contemplate - a good attorney is actually pretty helpful in calming the spirits. I think most BK attorneys will do a free or low cost consult???? At least, I think ours did. Been a while, though.
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