It is necessary that the Trustee recover a percentage fee on each Chapter 13 plan in order to defray the costs of administration; by law this fee may not exceed 10 percent.  This fee is allowed by the Court and should have been explained to you by your attorney.  Often debtors experience some confusion over this compensation as it does cause your plan to last a longer period of time.  Interest, which may or may not be paid to your creditors depending on your particular plan, also adds length and dollars to your plan.

It is very rare for a plan to last the exact number of months it was originally scheduled to run.  There are several reasons for this other than compensation and interest paid.  It often happens that a creditor files for a larger amount than you thought you owed.  Further, interest rates may be changed, or you may have forgotten a creditor which must be added to your plan.  On the other hand, some creditors may not file a proof of claim; this may shorten the plan length.

It is most important to remember that the length is a close approximation at the beginning of your plan.  The length is dependent on many factors which may change during the course of your plan.  You may contact the Trustee's office if you have questions concerning your plan's length.

No plan is allowed to exceed sixty (60) months, the time limit for completion allowed by the Court.  If this situation exists in your original plan, the Trustee will object to confirmation of the plan.  If it occurs or is discovered after the plan has been confirmed, the Trustee will file a motion that the case be dismissed.  Your attorney can help you in resolving this problem.

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