Could I reduce time from 60 months to 55?

[so_far_in_debt]

I am wondering if a person an reduce the number of months in BK if they were to sell an asset and pay it towards the monthly fee?

Example would be a person has to pay $300 per month for 60 months. If a person was to sell something for $1500 could you reduce your time by the 5 months?

[HHM]

Short answer, no. Chapter 13's are about disposable income, not so much about assets. Unless your payment plan ends up paying off 100% of your unsecured debt, and then you sell the asset, that would shorten your plan, otherwise, selling the assets really does not help.

[lrprn]

Short answer, no.

HHM is right. Let's say you are in Ch 13 paying less than 100% back to your creditors that filed to be included in your plan, then for some reason you get more "disposable income" - get a significant raise, receive an unexpected inheritance, sell an asset worth the trustee's time to come after the money, etc. What happens is that the trustee simply takes that extra money and gives a higher % return to your creditors up to 100%. Your plan stays the same length of months.

Your total number of Ch 13 payment months can be decreased by the trustee if:
- Because of added disposable income after the plan is confirmed, your creditors in the plan are paid back 100% before the total number of assigned months is reached.
- Not many of your creditors sign up to be included in your Ch 13 plan, and the level of your plan payment pays them back at 100% before your plan reaches the assigned number of months.

[aa06a47]

There is still some debate in the legal arena on your question. Note, 36 months is the min number of payments before you should even consider paying extra.

If your under the old law, after 36 months you can usually borrow money and pay the POT amount and get out. You can also pay extra each month and get done early.

The new law has different courts doing different inpretations on it. My attorney said my trustee said it didn't change anything and that after 36 months your able to pay the pot and be done. I've read other blogs where it is interpreted as you pay the full 60 months.

Again, don't even think about paying extra until after 36 months, then check with your attorney or trustee and find out the local rule they use on extra payments.