New BK Law - Early Pay Off

[Flamingo]

Normally, in order to buy out of a chapter 13, you must pay the filing unsecured creditors in full. That may be a lot, or it may be very little. And a buyout will depend on whether you are paying very little to unsecureds (0%) or alot (90%). Sometimes it makes sense just to keep going - I mean, why pay your creditors any extra if you don't have to!

But whatever you do, don't incur debt (like refinancing your house) to buy out of the bankruptcy - that's just swapping dischargeable debt for new nondischargeable debt - with the effect that you will still be paying the bankruptcy through a mortgage payment - and where has that gotten you?!?!

We actually had a client do that (advised by another attorney in their prior bankruptcy case). Now they had to refile because they fell behind on their mortgage payment and were threatened with losing their house! Oh boy.

I agree - the only reason we bought out early was to get funds to replace our badly leaking roof and other major necessary house repairs that could not wait another 1 1/2 years to the end of our Plan. We bought out, via refinancing, at 4 years into our 5 year plan. If we did not have to obtain funds for those absolutely needed expensive repairs, we would have continued to the end of our Plan. We had a ton of equity at that time and still do because we kept the refinancing down to exactly what was needed with no extra cash so we would get approved by the Trustee.

[woeisme]

Well, being the curious type, and since I haven't used Pacer at all for months so don't have to worry about getting billed, I decided to look up the case to see whatever happened to Shante.

Seems her case finally got confirmed, but from what I could tell, she ended up amending it to pay her unsecureds back at 100%, poor thing. I didn't open every document as there is an 8cent charge, just enough to get an idea of what happened. Here is the case summary if anyone is interested... What i could tell is that after confirmation, her attorney was very proactive on disputing claims, which makes sense once I figured out she was paying back 100%, any claim she can dispute successfully is a bonus for her.


History

Doc.
No. Dates Description
1
Filed & Entered: 07/13/2007
Docket Text Voluntary Petition (Chapter 13)
2
Filed & Entered: 07/13/2007
Docket Text Auto-Docket of Credit Card
3
Filed & Entered: 07/13/2007
Docket Text Chapter 13 Plan
4
Filed & Entered: 07/13/2007
Docket Text Certificate of Credit Counseling
5
Filed & Entered: 07/13/2007
Docket Text Debtor Evidence of Employer Payments Received
6
Filed & Entered: 07/13/2007
Docket Text Debtor Attorney Certification re Rights
7
Filed & Entered: 07/16/2007
Docket Text MOWB Meeting of Creditors Ch 13
8
Filed & Entered: 07/16/2007
Docket Text OSC for Matrix
9
Filed & Entered: 07/17/2007
Docket Text Order Directing Debtor(s) to Pay Trustee
10
Filed & Entered: 07/17/2007
Docket Text 13 Trustee Certificate of Mailing
11
Filed & Entered: 07/17/2007
Docket Text Meeting of Creditors Amended - Ch 13 matrix
12
Filed & Entered: 07/17/2007
Docket Text Declaration Re Electronic Filing
13
Filed & Entered: 07/18/2007
Docket Text Notice of Appearance
14
Filed: 07/19/2007
Entered: 07/20/2007
Docket Text BNC Certificate of Mailing
15
Filed: 07/19/2007
Entered: 07/20/2007
Docket Text BNC Certificate of Mailing
16
Filed & Entered: 08/30/2007
Docket Text Trustee 341/Initial Report
17
Filed & Entered: 08/31/2007
Terminated: 10/30/2007
Docket Text Trustee Motion to Deny Confirmation
18
Filed & Entered: 08/31/2007
Docket Text 13 Trustee Certificate of Mailing
19
Filed & Entered: 09/18/2007
Terminated: 10/30/2007
Docket Text Response
20
Filed & Entered: 09/19/2007
Terminated: 10/30/2007
Docket Text Hearing on Document
21
Filed & Entered: 10/22/2007
Terminated: 04/11/2008
Docket Text Transfer or Assignment of Claim (waiver)
22
Filed & Entered: 10/22/2007
Terminated: 10/30/2007
Docket Text Hearing Held
--
Filed & Entered: 10/30/2007
Docket Text Update Deadlines (13)
23
Filed & Entered: 10/30/2007
Docket Text Order
24
Filed & Entered: 11/19/2007
Terminated: 11/20/2007
Docket Text Motion to Extend Time
25
Filed & Entered: 11/20/2007
Docket Text Order on Motion to Extend Time
26
Filed & Entered: 12/07/2007
Terminated: 12/27/2007
Docket Text Objection to Claim (req hrg)
27
Filed & Entered: 12/07/2007
Terminated: 01/28/2008
Docket Text Objection to Claim (30 day ntc)
28
Filed & Entered: 12/07/2007
Terminated: 01/09/2008
Docket Text Objection to Claim (30 day ntc)
29
Filed & Entered: 12/07/2007
Terminated: 01/09/2008
Docket Text Objection to Claim (30 day ntc)
30
Filed & Entered: 12/10/2007
Terminated: 12/27/2007
Docket Text Hearing on Document with service by attorney
31
Filed & Entered: 12/10/2007
Docket Text Amended Chapter 13 Plan
32
Filed & Entered: 12/14/2007
Docket Text Certificate of Service
33
Filed & Entered: 12/20/2007
Terminated: 01/14/2008
Docket Text Trustee Motion to Deny Confirmation
34
Filed & Entered: 12/20/2007
Terminated: 01/14/2008
Docket Text 13 Trustee Certificate of Mailing
35
Filed & Entered: 12/26/2007
Terminated: 12/27/2007
Docket Text Withdraw Document
36
Filed & Entered: 01/04/2008
Terminated: 01/28/2008
Docket Text Response
37
Filed & Entered: 01/04/2008
Docket Text Hearing on Document
38
Filed & Entered: 01/09/2008
Terminated: 01/14/2008
Docket Text Response
39
Filed & Entered: 01/09/2008
Terminated: 04/11/2008
Docket Text Response
40
Filed & Entered: 01/09/2008
Docket Text Order on Objection to Claim
41
Filed & Entered: 01/09/2008
Docket Text Order on Objection to Claim
42
Filed & Entered: 01/10/2008
Terminated: 01/14/2008
Docket Text Hearing on Document
43
Filed & Entered: 01/11/2008
Docket Text Certificate of Service
44
Filed & Entered: 01/11/2008
Docket Text Certificate of Service
45
Filed & Entered: 01/13/2008
Terminated: 01/14/2008
Docket Text 13 Trustee Withdraw Document
46
Filed & Entered: 01/13/2008
Docket Text Ch 13 Trustee Plan Certification
--
Filed & Entered: 01/14/2008
Docket Text Terminate Document
47
Filed & Entered: 01/14/2008
Docket Text 13 Trustee Certificate of Mailing
48
Filed & Entered: 01/14/2008
Docket Text Order Confirming Amended Chapter 13 Plan - Initial
49
Filed: 01/16/2008
Entered: 01/17/2008
Docket Text BNC Certificate of Mailing
50
Filed & Entered: 01/28/2008
Docket Text Hearing Held
51
Filed & Entered: 01/28/2008
Docket Text Order on Objection to Claim
52
Filed & Entered: 02/06/2008
Docket Text Notice Allowing 13 Claims by Trustee
53
Filed & Entered: 02/06/2008
Docket Text 13 Trustee Certificate of Mailing
54
Filed & Entered: 03/09/2008
Terminated: 04/09/2008
Docket Text Objection to Claim (30 day ntc)
55
Filed & Entered: 03/09/2008
Terminated: 04/11/2008
Docket Text Objection to Claim (30 day ntc)
56
Filed & Entered: 04/08/2008
Terminated: 04/09/2008
Docket Text Withdraw Document
57
Filed & Entered: 04/11/2008
Docket Text Order on Objection to Claim
58
Filed & Entered: 04/15/2008
Docket Text Certificate of Service
59
Filed & Entered: 04/18/2008
Docket Text Notice Allowing Amended 13 Claims by Trustee
60
Filed & Entered: 04/18/2008
Docket Text Notice Allowing Amended 13 Claims by Trustee
61
Filed & Entered: 04/18/2008
Docket Text 13 Trustee Certificate of Mailing
62
Filed & Entered: 04/18/2008
Docket Text 13 Trustee Certificate of Mailing
--
Filed & Entered: 05/01/2008
Docket Text Notice to Substitute Creditor Attorney
63
Filed & Entered: 05/07/2008
Docket Text Notice Allowing Amended 13 Claims by Trustee
64
Filed & Entered: 05/07/2008
Docket Text 13 Trustee Certificate of Mailing
65
Filed & Entered: 10/24/2008
Terminated: 10/28/2008
Docket Text Transfer or Assignment of Claim (no waiver)
66
Filed & Entered: 10/28/2008
Docket Text Order of Substitution Transfer of Claim