New Law Early Buyout question - Student loans

[missfontella]

Hello everyone (this is my first post). I have been reading up on the early buyout option and see that the plan must be paid back at 100% to do a early payoff after 36 months.

My situation

When I filed, it was to keep my vehicle. My bills were not behind, for the most part, and it was to protect my car after a bad situation. Hard to explain. Either way, my bk is for a relatively low amount with the exception of my student loans and set to 60 months. When I filed, my lawyer told me that I could pay it off after 36 months (from my readings on this forum, apparently alot of lawyers say that). Now I am 32 months into my plan and am thinking about the early buyout. I am under the median income and we currently live in a BAD neighborhood. A security guard was killed while we have been living here and I want to move as soon as possible. I need to put this bk behind me so I can get my children in a decent area. I called my lawyer to ask about the early buyout and was told that it was no problem. She said to simply call her when I wanted to do it, which will be tax refund time. (My refund was counted as income in my bk)

Finally, my question. I don't know if I will have to pay 100% or not but without the student loans, I can with the tax refund. % Plan payoff ~ $3300. 100% payoff without student loans ~ $4200. Since the student loans will still be owed after the discharge and I am eligible for deferment anyway, will I have to pay the total amount of my student loans to get out of my bk early?

[missfontella]

Follow-up question: Would it just be easier to convert to a 7? I meet the means test but I worry about keeping my car (car title loan that didn't file a claim). I also worry about having two bankruptcies on my credit instead of one. I try to do the right thing as a rule so I was trying to just ride my 13 out. However, I have to get my kids in a better area and school. Will converting get this bk over with sooner and leave me with my only car? I should also add that I rent an apartment and have never purchased a home. I'm just looking for some input as a bounce ideas around.

[lrprn]

Welcome to BKForum, missfontella! Glad you found us!

What your lawyer told you is true - the potential for early payout of Ch 13 can be considered after 36 months. Unfortunately what you have to pay to get out early is 100% of what you owed on filing day to every one of your unsecured creditors who filed claims.

It sounds like the high priority issue for you is the student loan. Since it's a non-secured debt but isn't treated like the usual non-secured debt inside a Ch 13 (the loan survives a successful Ch 13 discharge), that makes it difficult to predict what might happen if you attempt an early payoff.

Best thing to do is get in touch with your lawyer and discuss the possiblities. He/she knows the details of your case and also knows the customs and practices around early Ch 13 payouts in your local court.

Good luck wherever this journey takes you! Keep asking questions....we'll help you sort things out as much as we can.