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Here is some additional explanation.
Component #1 is known as the “best interests of the creditors test.” It means that your unsecured creditors are entitled to receive either your disposable monthly income or the value of your non-exempt assets whichever is greater. Your disposable monthly income in calculated based upon bankruptcy laws and is known as the “means test.” If your disposable monthly income is $200/month then that figure multiplied by 60 (usually) is the number compared to the value of your non-exempt assets. So if you own a business worth $10,000 then you must pay the trustee $12,000 over the course of sixty months (the length of the plan) because your disposable income of $200/mo. multiplied by 60 months equals $12,000 which is greater than the value of the business, $10,000.
By rule your car payment, component #2, must go through the plan. Many times car payments are reduced simply because of the length of the plan. If on the day of filing you owe $10,000 on a vehicle which has a $400/mo. payment at 10% interest then that payment will be reduced to approximately $215/mo ($10,000 paid over 60 months at 5%interest). If the vehicle is worth less than the amount due and the loan was acquired more than 910 days ago then the payment will equal to the fair market value of the vehicle divided by 60, which is usually less than the current payment amount.
The attorney fee component, #3, is usually $33/mo which is $2000 divided by 60.
The trustee is entitled to a 10% monthly commission, #4, so if the other components equal $500 then your monthly plan payment is 550 (500+10%commission). If you are not utilizing Chapter 13 to save your house from foreclosure then your house payment does not go through the plan.
If you are saving your house by using Chapter 13 then your house payment plus an additional payment to catch up the past due amount is paid to the trustee, which is component #5.
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