My name is ************, I'm a 29 year old full time bankruptcy claims investor in CT. Im self taught and have begun to explore another avenue in other purchases in chapter 7
& 13 there are a couple details that are unclear in my researches with document filing and docket entries. I have LexisNexus, TLOxp and electronic filing access through Pacer where I gather information and risk assessments.
Most of my questions are based off of Chapter 13
, but some can also be applied to 7.
For example 3 secured, 3 unsecured creditors:
In a 13 when a payment plan has been approved, and the debtor has a $1000 a month payment for 60 months, when the trustee
disperses the funds, will secured claimant in priority position receive the $1000 until their claim is satisfied? or is the $1000 spread evenly across all 6 creditors?
The reasoning for my questioning is i will be dealing with consumer 7s & 13s with low claim amounts until i get a handle on the process and risk for this type of purchase. Obviously the math has to work in favor of covering all claims after liquidation or priority. I need clarity on how the funds are dispersed to the claimants from the trustee.
The larger firms that work in larger cases have a calculation on this math and also timelines on dispersement, if you can put me in the right direction i would be grateful.