Chapter 13 early payoff

[motown]

I'm new to this site and I have to say it is great.

I'm being told by my attorney that I can payoff the remaining 17 months early (60 Month Plan). I found this website because I wanted to make sure I wasn't setting myself up for problems. So I was reading in the post that if your a 100% plan than there shouldn't be any issues.

I wasn't sure what that was so I read that if I log into NDC.org I could found out. I reviewed my claim summary and they all state 100%.

Does this mean I'm in a 100% plan? If so than I guess my attorney was telling me correct.

Any information would be great.

[justbroke]

I no longer have access to the NDC (13DataCenter) so I can't check. I believe that for each claim they base the payment son the "base plan" amount. You may have paid 100% of the base plan. If you are required to be in a 60-month plan, because you were over-the-median, then you may be forced to pay 100% of the allowed unsecured claims.

In other words, for every unsecured creditor that filed a claim, you would have needed to payback 100% of that (allowed) claim amount. This is different from a "base plan" amount.

For example, your base amount could be $40,000 even though you owe $100,000 in unsecured debt. That would be a 40% dividend (give or take the Trustee's percentage), to the unsecured creditors.

You may be able to figure it out by looking at your confirmed plan and comparing either a.) the plan % or b.) the plan total dividend to unsecured creditors divided by the actual amount paid to the unsecured creditors.

The best answer is always your attorney or the Trustee. Always seek advice from your attorney before calling the Trustee!

[motown]

I no longer have access to the NDC (13DataCenter) so I can't check. I believe that for each claim they base the payment son the "base plan" amount. You may have paid 100% of the base plan. If you are required to be in a 60-month plan, because you were over-the-median, then you may be forced to pay 100% of the allowed unsecured claims.

In other words, for every unsecured creditor that filed a claim, you would have needed to payback 100% of that (allowed) claim amount. This is different from a "base plan" amount.

For example, your base amount could be $40,000 even though you owe $100,000 in unsecured debt. That would be a 40% dividend (give or take the Trustee's percentage), to the unsecured creditors.

You may be able to figure it out by looking at your confirmed plan and comparing either a.) the plan % or b.) the plan total dividend to unsecured creditors divided by the actual amount paid to the unsecured creditors.

The best answer is always your attorney or the Trustee. Always seek advice from your attorney before calling the Trustee!

Thank you for the reply. My attorney told me to just send in the last 17 payments and that I would be fine. He also said he has done many of theses over the years. I took money from my 410 k for this purpose. I emailed him at the end of the week to double check I wasn't going to create problem. He said he didn't foresee any issues.

[dmc-2008]

Lucky!!!!

[spidge]

Please report back the results.

Did you borrow from your 401K to fund this?

Thanks

[LadyInTheRed]

If you're attorney is confident there won't be a problem, I am sure it will be fine. But, for the info of anyone reading this, don't rely on the percentages on NDC. NDC shows all of my creditors being paid 100% when they will actually get less than 1%.

[spidge]

The plan base is a bit confusing in my opinion as it is currently twice what the claims show at the percentage indicated. I would think that those who made claims would benefit from those who did not.

Does the trustee receive more at the end of the plan?

[drew999999]

Yep... Just as the others say, check with your Trustee. I was able to pay mine off 1 year early (now waiting on my final hearing). You do have to be in a 100% payback for the amount of all filed claims. Also, be wary of the totals that NDC shows. It was correct for all claim amounts, but didn't take into consideration the Trustee fees. Depending on your remaining balance, this could reach into the thousands. When I spoke with my Trustee, they said that NDC creates alot of confusion for people in plans.

[justbroke]

Thank you for the reply. My attorney told me to just send in the last 17 payments and that I would be fine. He also said he has done many of theses over the years. I took money from my 410 k for this purpose. I emailed him at the end of the week to double check I wasn't going to create problem. He said he didn't foresee any issues.

Your attorney is always the best source for whether an early payoff would work. In my District, paying off early is a little more complex than just sending in what is left owing on the plan base. We must also seek leave of the court to modify the confirmed plan (shortening it), and must have concurrence from the Trustee that this is okay. So, my District is a little more strict, but most people who have been in a plan for at least 36-months have a "possibility" of buying out early, but it really differs amongst even the Judges in the District.

Again, typically our District requires us to contact the Trustee, find out what the "payoff amount" would be, and then, and only then, send that amount. We don't just unilaterally send in payments in advance. Some of our Trustees like to just keep the money. (We have 5 Chapter 13 Standing Trustees in our District and are one of the largest Districts in the country (with 4 sub-divisions).)

Let us know how you make out. We love Chapter 13 discharge parties around here!

[spidge]

Would the "Total Principle Owed" on the claims summary from 13Network actually be closer to the payoff amount than anything NDC posts?

[justbroke]

I don't know since I no longer have access to the NDC (13DataCenter).

[LadyInTheRed]

Would the "Total Principle Owed" on the claims summary from 13Network actually be closer to the payoff amount than anything NDC posts?

Based on what my claims summary says, probably. But, NDC really should not be relied on anything other than to make sure your trustee received a payment. It is not an official court record. There could be errors that aren't discovered until the audit is done at the end of your plan.

ETA: I just realized you asked about the claim summary on 13Network. I answered based on my claims summary on NDC (formerly 13datacenter). My trustee does not use 13Network. But, 13Network isn't an official court record either and could have the same kind of errors as NDC.

[spidge]

Makes me wonder why they even bother to create these two sites for our use. My trustee links directly to 13Network so maybe I should pick up the habit of using it rather than 13datacenter. I do like that 13Network has more calculations that could be helpful or add more confusion.

So it looks like it may only be good for payment monitoring as Lady' suggested. I will also keep an eye out for when the unsecured begin to get paid as that would signify that I am very close to final payment. My plan seems to be set up to pay in steps so the smaller claims go first then the larger claims get increased amounts. It's my way of counting down the payments.

[grndmom53]

Well I feel really dumb, I thought there was only one site to check on your plan, the 13 data center website!

I just looked up the 13 network & it shows our trustee in Arizona using the site! We have paid 59 payments into our plan, last payment is due in April..

To gain access to the 13 network, I have to fill out an agreement & mail to our trustee. Not sure if it is worth it since we are almost done.. Is the info on the network more accurate than the data center?

[spidge]

Well I feel really dumb, I thought there was only one site to check on your plan, the 13 data center website!

I just looked up the 13 network & it shows our trustee in Arizona using the site! We have paid 59 payments into our plan, last payment is due in April..

To gain access to the 13 network, I have to fill out an agreement & mail to our trustee. Not sure if it is worth it since we are almost done.. Is the info on the network more accurate than the data center?

There does not seem to be any solid confidence in either site.

Strange to me that the trustee uses it so why would it not be accurate?