Question about early payoff...

[just4me]

I'm in month 29 of a 36 month Chapter 13 filing that is set at a 69% payback.

Since we have filed - my husband had gotten a new job, and recently a large bonus. I'd like to do an early payback, but I'm trying to find out what the amount will be - without calling the trustee or my attorney. I want to make sure that I have the money "in hand" before I tip them off, and set off an audit.

When I look at the 13network site, on the profile page, it has a case options amount under "case payout" information. This is the TOTAL amount due to reach the 69% that was agreed upon.

However - my payments don't add up to that... my question is if I pay early - will I have to pay the total of 69% or 100% of the unsecured debt?


So - let's just say that my debt was $10,000
and the TOTAL repayment was a $6,900.
I only had $150/month to pay the bankrupty court, so I've made my payments for 29 months - totaling - $4350

Do I have to pay the $10,000 - pd $4350 = $5650 balance
or the $6,900 - pd $4350 = $2550 balance

Thanks in advance!!

Just4ME

[kmb]

Did you file under the old BK laws or the new BK laws? It's my understanding that if you filed under the old laws you could payoff early and would just have to pay the $2550, but if you filed under the new law, the only way to pay off early would be to pay 100%, so you would have to pay the $5650.

[HHM]

If you are new law, consider yourself lucky that you have a 36 month plan and simply keep making payments and get your discharge.

If you are old, then yes, you can buy-out the plan for the amount owed to the trustee, and not the balance of all claims.

[just4me]

I filed under the OLD laws, and although I am "lucky" in some sense, I'm also "unlucky" enough to be paying back about 30k of debt that my EX-husband of 10 year accrued after we were divorced!!

NOTE to everyone... check EVERYTHING - trust NO ONE!! He had accounts, and Lines of Credit that were open that I didn't even know about.

Thanks!! I feel a little better about "SAVING" some of that money!

Just4me

[just4me]

...and.... I've SERIOUSLY thought about just keeping my mouth shut for the next 8 months, considering that I filed under the OLD laws, and am probably not going to get audited at this point in the game... Thoughts??

Just4ME



Before you slam me... you can't hurt my feelings... I've more than paid back MY debt... it's the debt that my mentally and physically abusive husband racked up (more than $750,000 between his name, wife #1, me, wife #3, and his own daughter!) that I'm opposed to paying back!! He has since changed his name, and high tailed it to the mountains with all the stuff that he accumulated - and probably sold - and is living a nice comfortable life, while WE are all left to pick up the pieces and field calls from creditors on a daily basis!

[Flamingo]

I am discharged old law. Under the old law, if you paid off (bought out) of your Chapter 13 prior to 36 months, you would pay at 100%; after 36 months, you can pay off at the percentage at which you were confirmed.

Forget about your ex and move on....we all encounter bad seeds in our lives and have to cut our losses and move on. It's one of life's learning processes as we go on in our life adventures. But rest assured that he will definately get back all he dished out...what goes around comes around...

[just4me]

Forget about your ex and move on....we all encounter bad seeds in our lives and have to cut our losses and move on. It's one of life's learning processes as we go on in our life adventures. But rest assured that he will definately get back all he dished out...what goes around comes around...

I totally agree! He will get what he has coming - from someone much higher than me.... and "Living well is the best revenge" for me. I have a new husband, and life is good... (Except for this BK stuff)

Anyone else - now I have 2 for 69% and 1 for 100% (if before the 36 months)


Thanks!

Just4Me

[woeisme]

I've always heard that 36 months is the earliest you could do a buy-out without having to pay 100%. But I'm in a 5-year plan, so could be different for those in 3 year plans? I would just pay it off as normal over the 8 months and be glad for the bonus to make life a lot easier for the rest of the BK.

Sounds like life is a lot better now than it was when you filed, good for you!

[2ndChanceTx]

Its my understanding that its 100% before the 36 month mark. Once you reach 36 months you can buy out the remaining months for the balance due on your "plan base". I feel very confident about this answer.

[Flamingo]

Its my understanding that its 100% before the 36 month mark. Once you reach 36 months you can buy out the remaining months for the balance due on your "plan base". I feel very confident about this answer.

That is correct (old law). No one has yet to hit the 36 month mark under the new law and it will be interesting to see what comes out of that...

[holding on]

My attorney said yes, after 36 months you can buy out your plan at whatever your payments x 24 is if you are not at 100%. I asked if that's gonna be 'tested' since the new law bk hasnt reached 3 years yet. He showed me the trustee brochure dated feb 2008 that says you cannot prepay and get discharge unless you pay 100% or 36 months from plan confirmation has occurred.

[lrprn]

I asked if that's gonna be 'tested' since the new law bk hasnt reached 3 years yet. He showed me the trustee brochure dated feb 2008 that says you cannot prepay and get discharge unless you pay 100% or 36 months from plan confirmation has occurred.

So *your* local court's Ch 13 trustee has decided that's how early payouts will be handled in your court. However, it doesn't mean that all Ch 13 trustees across the country are going to make the same decision.

Ch 13 is already full of differences across the country - far more differences than in Ch 7. This is just one more opportunity for trustees to create one more difference. It's just more fall-out from the very badly written current bk law - be sure to thank all your 2005 representatives for voting for it in droves.