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Payment Distribution

Hello,

I filed bankruptcy over a year and made income surplus payment for 9 months. On top of that I had made a payment so that I can get discharge (conditional discharge).

My question is, how is total of payment is distributed to the creditors? Equally or based on the amount that I owed them?
I know some of that goes to the trustee to cover the services he provides.

Thanks.

Mike

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One Response to “Payment Distribution”

Barton Goth GCO Bankruptcy Trustees said...

The first thing that gets paid is the trustee’s administrative fees. This is based on a tarrif in the act and roughly breaks down to 100% of the first $975 received, 35% of the next $1035 received, and 50% of anything between $2000 and $10,000 received.

Once the trustee is paid the rest of the creditors will get paid on a pro rata basis based on what percentage of the total debt their claim represents (although there are certain creditors who are allowed to jump the cue and get paid in priority to the other unsecured creditors and a good example of this would be child support that was due in the last 12 months).