CH 13 Old Law Question

[helpless]

Does anyone know when the 36 month early payout time starts. Does it start from the time that you file or from the time of your first payment. Our is supposed to last 39 months and end 9/08, but would like to pay it off early because we have a child that will be going to college in that September. We filed 4/05 and made first payment 6/05, so can we request to pay it off in 4/08or do we have to wait until 6/08? Just curious. I can't believe that I am down to 12 months. Would like to pay it off early with tax refund next year if we can.

Thanks.

[Elf]

The trustee is the God of his or her little universe. They get to do as they please.

We finished three months early because of a weird payment schedule. (We have seasonal income and made arrangements for that upfront.)

We had to continue to pay until the we got an official letter saying that we could stop. Our trustee owed us six or seven payments by the time it was discharged.

Finishing has nothing to do with completing the payments. It has to do with the trustee deciding that you've finished the payments. They get your money, and three to six months later you get a refund. It really stinks.

Elf

[helpless]

I am old law and can buy out the balance after 36 months, just wondering when the clock starts ticking on buying out after 36 payments or 36 months. Thanks.

[Flamingo]

Does anyone know when the 36 month early payout time starts. Does it start from the time that you file or from the time of your first payment. Our is supposed to last 39 months and end 9/08, but would like to pay it off early because we have a child that will be going to college in that September. We filed 4/05 and made first payment 6/05, so can we request to pay it off in 4/08or do we have to wait until 6/08? Just curious. I can't believe that I am down to 12 months. Would like to pay it off early with tax refund next year if we can.

Thanks.

While I know how anxious you are to buy out of your Chapter 13, please note that you need Trustee permission to do so and a Motion has to be filed by your attorney and Trustee to petition the BK court to allow that. Your first step is to contact your attorney to see if you can actually buy out. Do you have enough equity in your house to refinance? What happens if your tax refund turns out to be taxes owing? Contact your attorney and go over this because what will have to be done is your attorney to go over with you if you can actually buy out; you will then be instructed on what to do. This is something that doesn't occur overnight; it takes several months for the Trustee to review the matter and file the Motion; then the Motion has to be heard and a decision made. And if you refinance doing all this, it can take much longer. We went through it. Took us 6 months from our first inquiry to our attorney about buying out to signing the settlement papers for the refinancing and we received our discharge 4 months after that.

[aa06a47]

Under old law, you should be allowed to buy out, but only after you have made 36 payments. The buyout would consist of paying the entire amount your plan called for (along with trustee fees). (You should have a POT plan amount)

If your in a 100% payback you should be able to pay it off at anytime. Best of course to consult your attorney, especially if your not in a 100% payback plan.

[Elf]

36 months.

[Flamingo]

Fee

I forgot to mention that the attorney will charge an additional fee for you to buy out of your Plan - in 2006 we had to pay $400 which the attorney included on our refinancing settlement sheet and was paid the the firm at settlement.

[helpless]

I won't need to refinance my house in order to pay it off after 36 months. It will only be $1400. I just want to be done with it after the 36 months so we can be done with it and get on with our lives. Most importantly, I will be having another one going to college!!