15 months into a 41 month plan....

[kags1969]

Well I am 15 months into a 41 month plan. 26 months left.

My car payment (outside of the plan) drops off in about 7 months so I am thinking about banking money and trying to payoff at the 36 month mark which would be in 21 months.... does anyone have experiance with early payoffs?

I am thankful to be working my way out of this burden, without the 13, I would still be buried neck deep. I have to keep it all in perspective. This is my second chance, and I will not waist it.

Right now the plan is to keep my nose down and live under my budget...

It is mind blowing to think what I will be able to do with the $1500/month I am paying to the trustee.... If I save for a year at that clip, I would be able to pay cash for a nice used car.... It has been a long time since I've had 10-15k in the bank.... how nice would that be...

Kags

[SinkingFast]

When you pay off your car, the Trustee may want those extra funds for the plan.

Just as a CYA, you should Consult the attny who filed your plan for you what exactly will happen. Some Trustees are very meticulous and follow up on all their Ch 13 plan participants. Other Trustees aren't. Once you're Confirmed they're done with you. So check with your attny to see how things typically go in your local Court.

Most people here who've paid off early refi'd their homes to get the money to buy out early.

[aa06a47]

I would let sleeping dogs sleep. All these issues / payments are reviewed by the trustee prior to confirmation. If they overlooked them, and no objections from the creditors, then I would not bring it up! (This is the little Devil in my talking)

[CATCHMEIFYOUCAN]

Hmmm

I would let sleeping dogs sleep. All these issues / payments are reviewed by the trustee prior to confirmation. If they overlooked them, and no objections from the creditors, then I would not bring it up! (This is the little Devil in my talking)

Heh heh, my thoughts exactly! "Catchmeifyoucan! "

Does anybody know if the trustee asks for your bank stubs, more payroll stubs as you go through the chapter 13? Or is a one time thing, I know my trustee wants copies of my taxes every year. (state of VA)

kags, I'm sending you a PM!

[drednm]

Seems like early payoff works differently in every state. CH 13 has (seemingly) no consistency in dealing with disposable income, payoff, etc.

I just asked my lawyer to request an official payoff figure for my (FINALLY AFTER ALMOST 2 YEARS) confirmed plan... SIXTY DAYS! to issue something that's all on the computer. His first response was "monthly payment times number of months left."

I want an itemized OFFICIAL payoff figure since the BASE PLAN was full of errors... But if it takes 2 MONTHS it will never be up to date.... STUPID STUPID STUPID SYSTEM..... and you can't pay if off without a OFFICIAL figure on a CONFIRMED plan.... They'll do anything to hold you in this miserable mess for as long as they can.....

New Mexico SUCKS

Well I am 15 months into a 41 month plan. 26 months left.

My car payment (outside of the plan) drops off in about 7 months so I am thinking about banking money and trying to payoff at the 36 month mark which would be in 21 months.... does anyone have experiance with early payoffs?

I am thankful to be working my way out of this burden, without the 13, I would still be buried neck deep. I have to keep it all in perspective. This is my second chance, and I will not waist it.

Right now the plan is to keep my nose down and live under my budget...

It is mind blowing to think what I will be able to do with the $1500/month I am paying to the trustee.... If I save for a year at that clip, I would be able to pay cash for a nice used car.... It has been a long time since I've had 10-15k in the bank.... how nice would that be...

Kags

[CATCHMEIFYOUCAN]

Early Payoff

Seems like early payoff works differently in every state. CH 13 has (seemingly) no consistency in dealing with disposable income, payoff, etc.

State of Va., if your plan is at 100% you can pay it off early, if you plan is at a percentage, they don't allow you too! Sounds crazy, but the reasoning behind that is lets say you have a 5 year plan, at a percentage, and you want to pay it off. Well if you have the money to pay it off (at the percentage) in 2-3 years, what happens to the rest of the years your plan was under - means you still have "disposable income," to continue the plan and possibly pay it off at 100%!

Makes sense? Doesn't sound fair, but you are getting away with paying less than the creditors if you are on a percentage plan, no I'm not siding with the trustee or creditor, I think it just sucks!

Catchmeifyoucan

[drednm]

well mine has gone on and on and I don't even have a copy of the confirmed plan. The trustee's office does whatever the hell they like... where is the federal regulation of this office? Third-rate lawyers as private contractors to the US Trustee office.... The trustees are not even federal employees. Kickbacks? Deals? I'm sure.... it's all a big game at the expense of Americans who have gotten into trouble..... Try finding a point by point description of the process.... and 60 days to spit out a one page computer report??? BULL

[kags1969]

I know that unless you are 100% payback you can't payoff early, you have to go at least 36 months (This is the old law).

I had started off paying $1000 ish /month, but during the confirmation of my plan, the trustee disallowed some of my expenses and the monthly amount jumped to $1550 ish /month. So I paid for 12 months at my original plan of $1000. The plan was confirmed at $1550ish and they recomputed what I should owe ( $1550 x 36 = $55,800 ). So $55,800-$12000($1000x12) = $43,800 / $1550 = 28.25 months. My lawyer agreed to 29 months at the higher rate (or five months beyond the 36 month mark) and there we go.

So had I just started at $1550 it would have been a 36 month plan.

I disclosed the car payment and loan amount in my plan and they accepted the plan. Let sleeping dogs lie is my phylosophy on that.

[kags1969]

drednm,

It took about a year for my plan to confirm. I filed in August before the law changed ( and the law changing was a major factor in my decision to file, I was glad that they at least set a forward date on the law change so people who needed to get in could). I think there was a lot of filing going on in the months preceeding the law change and the system just got backed up.

Kags

[anonymuse]

Well I am 15 months into a 41 month plan. 26 months left.

My car payment (outside of the plan) drops off in about 7 months so I am thinking about banking money and trying to payoff at the 36 month mark which would be in 21 months.... does anyone have experiance with early payoffs?

Kags

Since you're 15 months into your plan, that makes you old law. Theoretically, your 41 month plan is a 100% plan. Ask your attorney first--don't want to mess up something that's going well for you.