Early chap 13 payoff [Archive]

ark98angel

02-03-2005, 03:32 PM

I am 20 months into a chapter 13 filing. My husband recently died and now my income has been cut in half. I will be receiving life insurance benefits. Can I payoff early without losing all of my benefits? Or will the courts take it all and payoff the filed debts in full? My debt to income ration is now twice what it was, but the lump sum I will be getting would make up for my husbands income for the rest of my filing if it stayed the way it's set. Can I keep the court from taking it all? I'm afraid I would not be able to afford my mortgage if they do. After losing my husband, I do not want to lose my home as well.

HHM

02-03-2005, 03:49 PM

You could probably seek a hardship discharge of your Chapter 13 and not have to turnover any of the life insurance proceeds. Go see a lawyer.

rberhow

02-04-2005, 11:13 AM

Ark98Angel-I am so sorry for your loss. I don't have any advice but wanted to extend my sympathies. Take care.



	Bankruptcy Forum > Before the Discharge > Chapter 13 > Early chap 13 payoff PDA Early chap 13 payoff ark98angel 02-03-2005, 03:32 PM I am 20 months into a chapter 13 filing. My husband recently died and now my income has been cut in half. I will be receiving life insurance benefits. Can I payoff early without losing all of my benefits? Or will the courts take it all and payoff the filed debts in full? My debt to income ration is now twice what it was, but the lump sum I will be getting would make up for my husbands income for the rest of my filing if it stayed the way it's set. Can I keep the court from taking it all? I'm afraid I would not be able to afford my mortgage if they do. After losing my husband, I do not want to lose my home as well. HHM 02-03-2005, 03:49 PM You could probably seek a hardship discharge of your Chapter 13 and not have to turnover any of the life insurance proceeds. Go see a lawyer. rberhow 02-04-2005, 11:13 AM Ark98Angel-I am so sorry for your loss. I don't have any advice but wanted to extend my sympathies. Take care.