What is the average percentage someone would pay a trustee to disburse my monthly payments to creditors in CA?

Asked over 4 years ago - San Francisco, CA

I filed for Chapter 13 & I was told by my attorney that I would have to pay the trustee (him) an amount close to what I would be paying monthly to the creditors. I want to know if I am being swindled or if it is usual to pay more than 50% to a trustee?

Attorney answers (2)

  1. Stuart Michael Price

    Contributor Level 9

    Answered . I'm not certain that I understand your question. However:

    You will be paying your creditors a certain percentage. It depends on your surplus income. It can be between 0% and 100% of your unsecured debt, over a period of months (typically 60 months).

    Your trustee receives a % of the monthly payment for their services. It is approximately 10%.

    So: If you had $60,000 of credit card debt, AND if you were going to pay them 50 cents on the dollar, that would be $30,000. Over 60 months that would be $500/month. Your trustee payment would be a total of $550 which would be $500 for your creditors and $50 for the trustee.

    Stuart Price
    Price Law Group
    800 884 6000 x1232

  2. Kristine Caroline Kyllander

    Contributor Level 9

    Answered . You need to review your Plan. Directly within the Plan it should clearly indicate the amount of fees that would be allocated to the Trustee for his services. Usually this fee runs as a percentage of what he is distributing (typically between 10 - 11 %). The previous answer to your question shows a good example of what this would look like.

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