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Questions - Unsecured debt paid off earlier than planned

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    Questions - Unsecured debt paid off earlier than planned

    *My attorney is in the middle of relocating to another city and won't be answering emails unless it is an emergency. Trying here first to see if anyone has had a similar experience.

    I am looking over my file at NDC and I am far enough in (almost at 3 years) that all of my payments are now going to unsecured debt. (Secured debts are paid.) As it looks now, I will have my unsecured debt paid off in 14 months - which is one year before the 5-year mark. Forgive me if this is a stupid question, but does that mean I will be finished at the 4-year mark? My attorney made it seem like my options were 3 years or 5 years with no in-between.

    Also, I overpaid for 18 months - I was to have an adjustment for the loss of child support when y daughter turned 18 because I continue to support her during college. That was finally updated 2 weeks ago.

    If I do have to pay for 5 full years, where will that extra money go?

    I apologize if these questions seem stupid. The court gave me a booklet explaining all of these things when I went to my hearing but I was so upset after the hearing that I left it behind.

    #2
    If you payoff your unsecured debt at 100% (mean the entire claim is paid), then you will qualify for an earlier discharge. Were you originally in a 100% plan or your plan became a 100% plan? (If by paid off you mean that you would pay the Plan Base but not the total unsecured debt, then my answer would change.)

    The answer really depends on whether or not you mean paying the entire unsecured claim. If you're just referencing the Plan Base then you would need to know whether or not the Plan base is 100% of allowed unsecured claims (plus the secured debt, attorney fees, trustee fees).

    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    I am not an attorney. Any advice provided is not legal advice.

    Comment


      #3
      Originally posted by justbroke View Post

      The answer really depends on whether or not you mean paying the entire unsecured claim. If you're just referencing the Plan Base then you would need to know whether or not the Plan base is 100% of allowed unsecured claims (plus the secured debt, attorney fees, trustee fees).
      It's not a 100% plan. Original calculations were put in that I would pay back 7% on unsecured debt but they miscalculated that (and not every creditor submitted a claim). So, it was adjusted to 11%.

      Comment


        #4
        Generally speaking, you would not receive an early discharge unless 100% of the allowed unsecured claims are paid. If you are only going to pay 11%, that would be short and would not automatically make you eligible for an early discharge.

        However, in some Districts, the Chapter 13 Standing Trustee may excuse a debtor early if at least 36 months have passed in the plan, and the debtor has paid the "plan base" over that period. Whether or not your specific district and/or Trustee permits such early plan discharges, is unknown. The bottom line is that the Plan Base, as shown on NDC, can mean different things. My Plan Base increased every time I gave the Trustee a tax refund. Even though I paid off the original Plan Base early, they just increased it.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        I am not an attorney. Any advice provided is not legal advice.

        Comment

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