In Chapter 13, including trustee’s fee of 10% and beginning month, day, year, Debtors to pay to the trustee for a period of 36-60 months normally. In the event the trustee does not collect the full 10%, any portion not collected will be paid to creditors pro-rata under the plan.
If you have a 60-month term, your payments will be completed after you have finished making 5 years of payments. If your plan begins in the month of January, your final payment will be due in the month of December of the fifth year. If the payments begin in the month of March, the final payment will be due in the month of February in the fifth year, and so forth. Likewise, if your plan term is 36 months, your payments will be completed after three years, etc.
Debtors must normally adhere to the provisions of the “applicable commitment period,” or the minimum duration of the repayment plan, which is determined by the debtor’s income. If at the time of filing, you earn more than the state median for a household of equivalent size, your applicable commitment period will be set at 60 months. If you earn less, your commitment period will be shortened to 36 months. Applicable commitment periods are set by federal law in accordance with 11 U.S.C. §1325 (Confirmation of Plan).
Read about early payoff here.
