What's this about "getting done early"?

[COrnguy]

Have read where a few Chapter 13ers have claimed that they are discharged even after as little as 15 months. Please explain. Sounds like they weren't paying as much as they should have been?

[arkienurse]

Have read where a few Chapter 13ers have claimed that they are discharged even after as little as 15 months. Please explain. Sounds like they weren't paying as much as they should have been?

In a 13, the ones that finish early are usually the ones that were in a 100% payback plan. If not all of their creditors filed, this caused them to finish up early since they were 100% payback. The court isn't going to make you keep paying if you already paid everyone in full that filed a claim.

[gamom02]

Exactly Arkie,
We did pay 100% payback for 15 months was supposed to be for 5 years, and only 2 of our creditors filed their proofs of claim. Their loss our gain. We did our part.
We even received a refund of $4200 that we overpaid the trustee.
So be glad if your creditors don't file.

[arlington]

Exactly Arkie,
We did pay 100% payback for 15 months was supposed to be for 5 years, and only 2 of our creditors filed their proofs of claim. Their loss our gain. We did our part.
We even received a refund of $4200 that we overpaid the trustee.
So be glad if your creditors don't file.

Hi GaMom...just to make sure I understand you...when you initially filed had you planned to take the 100% route or did you decide to do so once you reliazed that most of your creditors didn't file? For instance...we don't have any plans on filing 100% but once the 60 days are up (or is it 90) if we see that not everyone filed can we decide to pay 100% of those people that did file so that we can decrease deviate from the 5 year plan.

[gamom02]

arlington,
We had to do 100% as per our lawyer and the trustee. You do not get to choose. It is all figured by the means tests. We had to many assets and alot of equity in our home. It was not our choice. You cannot decrease your payment on your own. Even though all our creditors did not file, our payment never decreased we paid the same every month. Now I am glad we did.
Everything has to be approved by the trustee.

[SinkingFast]

You pay all your disposable income each month. If that translates into a 100% payback, that's what it is.

Some got out early due to all Creditors not filing Claims.

Several others refi'd their homes to pay out their Ch 13 payment plans.

[klux]

I know I'm not going to be paying much back to unsecured, but what about secured. What happens if they don't file a claim, does that ever happen?

[gunsmoke]

gamom2: wow, you got a sweet deal. wish everyones 13 turned out that good.

[gamom02]

Gunsmoke,
Thanks.
Yes , we do do feel we are blessed on this. We are so grateful it worked out for us.
We did everything we were supposed to do and it turned out well.
I wish everones could be as quick.

[aa06a47]

You pay all your disposable income each month. If that translates into a 100% payback, that's what it is.

Some got out early due to all Creditors not filing Claims.

Several others refi'd their homes to pay out their Ch 13 payment plans.

To add to what SinkingFast said, it is all disposible and they must receive at least the amount they would in a total liquidition (chapter 7). So, if you have alot of non exempt home equity, your payment might have to be large enough to cover the non-exempt part. That's why OJ moved to Florida..unlimited homestead exemption....he could keep his multimillion dollars in home equity and not pay a dime to the creditors.

[Florida13]

I am on a 3-year, 20% payback plan with 13 months to go. I am planning on paying off my plan 6-7 months early next spring.

My trustee here in Florida (and keep in mind every district has different rules) told me if I am paying off more than 5 months early, I am required in writing to let them know where this extra money is coming from.

My plan is to take a withdrawal from my 401k to pay the last 6-7 months off in February or March. I informed them of that, and they said it would be ok.

Further, my lawyer tells me she has clients who pay off their Chapter 13s all the time without penalty. Most of them are not on 100% plans.

[chpxiii]

I have requested a pay off... this will be 10 months early for me. (5 year plan, I filed june of '03.) I'm waiting for what my pay off will be. I called my lawyer. She has not called back so I guess it's ok.

[FeelingHopeless]

We were in a 100% plan ... which meant our trustee was not required to take our tax return. However, the first year, they argued with me and claimed they WERE required to take it whether we were 100% or not. That broke my heart, honestly ... we really needed the money at the time. I approached them again the next year and they said they'd been wrong and told us to keep our refund.

In any case ... we were paid off about 6 months early because of that first year tax mistake ... and, boy, I'm not complaining. It ended up being one of the happiest "mistakes" I've ever had to deal with! haha

[dscurlock]

You pay all your disposable income each month. If that translates into a 100% payback, that's what it is.

Some got out early due to all Creditors not filing Claims.

Several others refi'd their homes to pay out their Ch 13 payment plans.

can you dispute a creditors claim? I have multile creditors attempting to collect the same debts.

[FeelingHopeless]

Yes, I believe so. I think your lawyer can dispute a claim ... our lawyer disputed two or three claims and won each time. There are people here with a lot more experience and knowledge than me ... but I know we disputed a few claims on ours ...