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Questions regarding chapter 13 100% plan

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    Questions regarding chapter 13 100% plan

    I recently filed for chapter 13 and my attorney told me I should be on a 100% plan. I'm interested in knowing, what if your creditors don't make a claim? I know I will keep paying my plan 100% but if some creditors don't make a claim does this mean I could possibly end my payment plan early?

    Has anyone had this happen to them? Would love to hear stories and feedback.​

    #2
    I just finished a 100 percent plan and even though some of my creditors didn’t file claims, that extra money just went to other creditors. I still had to be in it for 5 long years.

    Comment


      #3
      Welcome to BKForum.

      In a 100% plan, you pay 100% of the allowed unsecured claims (plus your other secured debt, Trustee commission, and attorney fees if they are in plan). If an unsecured creditor doesn't file a claim, then they don't get paid. I had about $40,000 where the creditor(s) didn't file a claim. If I was in a 100% plan, then I would have paid $40,000 less.
      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

      Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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        #4
        About 25% of my unsecured creditors didn't submit a claim. This was about 20% of my total debt. My plan payments were not changed from what was in my petition and confirmed in my confirmation hearing. So, online at NDC still has same base payment amount. I am expecting to end about a year early since my payments were based on our original petition submission which had 100% of our debt and it is a 100% plan.
        Notes: Filed 5/17/2023. 341 hearing 6/22/2023 (a few basic yes / no questions). First garnishment 5/27/2022 recorded 6/1/2022. First trustee disbursement 6/30/2022. Plan confirmed 8/24/2022

        Comment


          #5
          Originally posted by catanon View Post
          I recently filed for chapter 13 and my attorney told me I should be on a 100% plan. I'm interested in knowing, what if your creditors don't make a claim? I know I will keep paying my plan 100% but if some creditors don't make a claim does this mean I could possibly end my payment plan early?

          Has anyone had this happen to them? Would love to hear stories and feedback.​
          Yes you could end early or modify the plan and reduce your payment. I would see if you could do that and put some money away for a rainy day.

          I was in a 100% plan and starting payment was $1920 per month. I eliminated approximately 35k in debt because creditors did not file. Then I modified my mortgage and once that was done, modified my plan myself (got rid of my attorney) my new payment is only $743. I am able to put money in savings every month.

          100% plans have advantages and the trustee bothers you less because you are already paying 100%, they will monitor you less because they can't get more than that.
          Last edited by womanonfire; 05-04-2023, 03:47 AM.

          Comment


            #6
            Originally posted by Reeda View Post
            I just finished a 100 percent plan and even though some of my creditors didn’t file claims, that extra money just went to other creditors. I still had to be in it for 5 long years.
            This doesn't make sense to me. In a 100% plan, you are paying all creditors 100% of what you owe them so how did the court get you to pay more than 100% to the creditors that did file? Interest?

            Comment


              #7
              Reeda were you in less than 100% plan, but since all creditors did not file you ended up paying 100% to those who did file claims?

              catanon My chapter 13 not all creditors filed, but we paid the amount in the original BK terms. Our BK 13 ended/was discharged in just over 4 yrs instead of 5 years. The BK 13 was discharged at the time when all the creditors, who filed claims, were paid in full.
              I am not an expert. I just share my experiences in the Wonderful Wacky World of Chapter 13! Filed 3-30-18 Confirmed 7-11-18 Discharged 6-8-22

              Comment


                #8
                I am also in a 100% plan and had asked the same question, I was told the same thing, you could finish early.

                Comment


                  #9
                  I filed with about 114k in debt. Now most of it were old collections and newer collections that just kept hitting and no way was I ever going to catch up and pay them (stupid timeshare that I had with my ex, he was paying the mortgage but not the resort fees and it was 1000.00 every few months hitting collections) I filed to get rid of the timeshare.
                  Anyways, after I submitted all my debts and income my 100 percent repayment plan came out to 1910.00 for 5 years. But after claims were made, my debt owed only came out to 55k. I was told by my attorney that a lot collection agencies won't make claims because they will only get pennies on the dollars. But I decided to just keep making the same payment amounts and I'll be done in 2.5 years instead of 5. I only have a year left. I work lots of overtime, I do a zero based cash budget and I have been able to thrive and save off of my income. My credit score is better now that it was before I filed.

                  Comment

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