Lets say my total debts are $60,000 and that a full plan payment would be $12,000 a year over 5 years. Do the trustee fees come from the $60,000 and diminish the amounts payable to the creditors or are the trustee fees on top so that I end up paying total $66,000 (assuming 10% trustee fee) under the plan?
Typically, 100% of your monthly net disposable income is paid into the Chapter 13 plan. If that amount is less than what is needed to pay the creditors in full, then naturally the Trustee's fee would be a percentage of that amount and would reduce what is paid to the creditors (since you are paying 100% of your net disposable, the Trustee fee can't be in addition to what you are paying creditors or you would have to exceed 100% of you monthly net disposable). However, if you have enough money that your monthly net disposable income is greater than the amount you need to pay your creditors through a 100% plan, then the Trustee fee would be added on top of that monthly amount. The Trustee fee is calculated based on a percentage of the total amount of the plan payments. In Los Angeles, that is typically 11%.
Divorce / Separation Lawyer
Trustee fees are a percentage of the amount you are paying and different for each trustee, so 10% would be $6,000 or $100 for 60 months.
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The missing factor from your analysis is your disposable income, which much be paid into the plan. The Trustee fee could effectively come from the pot that would otherwise go to creditors, which is common since 100% plans are somewhat infrequent, or the fee may be paid by increasing the pot via higher payments from you.
I agree with the answers of my colleagues. You would be well served to consult local Chapter 13 counsel. There are many "ins and outs" in the computation of your payments under any plan because they must be divided between different creditor classes and depend on your available income. Any answer here is likely to mislead. Good luck.
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If you have so much disposable income every month that paying $1,000/mo toward your unsecured debts would not be a problem, then, yes, the Trustee's fee will be added to what you are required to pay to your creditors.
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Chapter 7 Bankruptcy Attorney
Your question assumes that chapter 13 will require you to pay your debts in full. Chapter 13 requires you to pay based on your ability to pay. Most chapter 13 cases pay pennies on the dollar to resolve unsecured debts (credit cards, medical bills etc.) If you are able to pay in full, bankruptcy may not be the best course of action. That said, in most cases the trustee's fees diminish what is payable to creditors.
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Chapter 13 Bankruptcy Attorney
The trustee fee are part of you plan payment. She takes 10% of everything she pays. Your plan should include the trustee fee as part of its calculation. Make sure you hire a competent Chapter 13 counsel that can properly write your plan. It is near impossible to confirm and consumate a Chapter 13 plan without an attorney.
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