Am I CRAZY???

[BK_Broiler]

I am past the 3-year mark in my Chapter 13 BK (I filed pre-10/07/05). My understanding was that the old plan allowed me to pay off the balance of my bankruptcy plan (which is less than 100% of all debts in BK) after the third year.

I want to sell my current home and use the equity to payoff the plan and put a down payment on a new home. Am I crazy to think that the trustee will let me pay off just the plan and not pay back 100% of all debt?

[woeisme]

I think you are correct, if you are old law you should be able to pay off the remainder of your plan. I'd call your attorney and get the ball rolling if it's what you really want to do. Good luck!

[Flamingo]

I am old law. We were able to refinance and pay off our Plan after we hit the 36 month mark. There is a lot involved so call your attorney who can get things rolling for you. Plus it takes time due to all the paperwork as to the house and also a Motion will have to be filed by the attorney and trustee to the BK Court to give you permission. It can take anywhere from 3 to 6 months for a refinancing and if you are selling your house, in this market it could take longer.

[BK_Broiler]

I just got off the phone with my lawyer's office, and they just said that I didn't need their permission to sell my home and that I should contact the trustee. This has me really confused. My BK has been handed off twice, so now that I am on my third lawyer, I don't think they have an interest in helping me.

The trustee's payoff guy is out today, so I won't know until later in the week what they say.