Change in Status

[bankr]

I am about 24 months into my 36 month plan and have paid 100% of the time. My question is this - if I have extra funds, am I obligated in any way to pay off my BK debt sooner than the 36 months? For example, I may (and this is only a possibility) come into several thousands of dollars making it possible for me to be able to pay the last 12 months of my BK off quite easily. Am I required to do so? What will happen if I don't?

Also, related to this - since I've already file BK and have that on my credit report, is there any sense to me going in front of the judge and withdrawing my BK and having it dismissed? Obviously I'd have to pay my creditors but wouldn't I still have that black-flag on my credit report?

[aa06a47]

If the possiblity exists, you might take steps to "protect" that money if at all possible for the next 12 months. Yes, that money will more than likely given to the trustee if you get it in advance.

[13inOR]

What I know for sure: You are required to report any amounts of money over $2500 to the trustee. You very well may be able to pay off early with it, but you would have to pay everyone 100%. Is this amount of money you are possible getting enough to do this?
Even if its not enough to pay it off, the trustee can and probably will take the money, and from what I understand, if you arent paying 100%, it doesnt go to the part of the debt you were paying anyway, it goes as extra to the creditors, so its kind of a waste if you werent going to have to pay them anyway.
Also, if you dismiss early, the bankruptcy still shows on your record.
I couldnt tell from your post if you are paying 100% or you just meant you
have paid all of your payments on time so far.
Hope this helps some.

[SinkingFast]

Any windfalls you come into while in a Ch 13 plan are supposed to be reported to the Trustee. Inheritance, lottery, etc.

Most likely, the Trustee will take an amount equal to your remaining payment amount. But, as 13inOR has already experienced, don't expect to not continue to make payments after that. 13inOR paid off their plan early and still had to make payments for 2-3 months before the Trustee ceased the plan. The excess will be refunded to you after the Final Audit of the Creditors when you're discharged and closed.

[aa06a47]

I am about 24 months into my 36 month plan and have paid 100% of the time. My question is this - if I have extra funds, am I obligated in any way to pay off my BK debt sooner than the 36 months? For example, I may (and this is only a possibility) come into several thousands of dollars making it possible for me to be able to pay the last 12 months of my BK off quite easily. Am I required to do so? What will happen if I don't?

Also, related to this - since I've already file BK and have that on my credit report, is there any sense to me going in front of the judge and withdrawing my BK and having it dismissed? Obviously I'd have to pay my creditors but wouldn't I still have that black-flag on my credit report?

With 12 months left, no way, don't dismiss your case. Creditors will come back on you like stink on ....t . Plus, they will charge interest, penalties, ect. Suck it up and make it the last 12 months. I am not sure what the several thousands of dollars is coming from, but if you can defer it for a year, you should do so. Otherwise, the trustee will get it.

[bankr]

thanks for all the great advice. Looks like I have 12 months to go so I'll stick it out. My terms are 65% payoff so paying off early would cost me a bundle.

[13inOR]

thanks for all the great advice. Looks like I have 12 months to go so I'll stick it out. My terms are 65% payoff so paying off early would cost me a bundle.

Oh--definitely not worth paying early. You have come this far, just finish it out and enjoy your money later if you get it.

[Minnymouth]

Yeah, you sure don't want to screw up a good thing right now........

If it is a sizeable sum - ALL CREDITORS WOULD BE PAID OFF IN FULL......

And you still have the bankruptcy on your credit report.....

Minny