Early Payoff - Getting Out - Questions

[Monty2000]

Everyone - could be my last post, thanks for the advice over the last few years.
For various reasons - lost my job, but got a new one already, need to get a Top Secret Security Clearance, and I'm just tired of being in BK.
I have taken a loan from my 401k and sent the check to my Trustee. Done Deal. Too late to talk me out of it

I will take a month or two for them to distribute the funds, about 25k. But for now, I can show a Trustee Report to the Government and it shows my balance at Zero.

My question is, what will happen at the end?
I do not have an attorney, only used one to get started. We parted ways a couple years ago. Do I need to do anything legal wise? Will I need to appear? I know they may ask where the $ came from. Should be an easy answer with easy proof.

Hoping it all goes easy.

Thanks
Monty

[BKParalegal]

I am assuming you filed a Modification of the Chapter 13 plan, to allow for a payoff. If you did, then once the trustee disburses the funds, you will receive your discharge. I hope that you didn't just pull the funds out of your 401k and send the funds in based off looking on the trustee's website and seeing the balance due. If you did, those funds you pulled out, became non-exempt and the trustee will file a motion to modify your plan and apply all those funds to your unsecureds, and you will still owe the original amount plus what you sent in.

Good Luck

[Monty2000]

I'm in a 100% payback Ch13. Paying all secured and unsecured debt. I called for a payoff amount from the trustee and sent that amount.

thanks

[Flamingo]

Supposing all goes well with your payoff directly to the Trustee under what you state above, what the Trustee will now do is send out to all creditors any remaining balance due and also send correspondence to each creditor for them to sign and return that they have been paid in full. When the Trustee receives all those signed documents back, and he/she does a final audit, you will receive your discharge. It may take about two months (give or take) from his receipt of your payoff to when you receive your Discharge papers. For example, we bought out of our Plan early with payoff during refinancing in early April 2006. We received a letter from the Trustee as to what was going to be done in June 2006 (i.e., what I state above). Our discharge was dated the end of August 2006 and we received copies in the mail in early September 2006 from both the Court and our attorney.

[BKParalegal]

Monty, I am interested to see if your payoff was adjusted to reflect the reduction in interest you would have paid if you completed the plan. Generally, a Trustee will file a modification, taking the interest that would have been paid to the secureds and paying that difference to the unsecureds. But you are a 100% plan, so there is no where for that money to go except back to you. Take a look at the paperwork and see if they reduced your payoff due to that.

Good Luck

[Monty2000]

Interesting, but I'm not sure if I was paying extra interest to any of the secureds. I did expect the payoff to go down based on the interest payment to the trustee. Only to find out that it is not interest, but a service charge payed to the trustee, so no, the payoff did not drop any. I was disapointed, but I'll live.
Thanks for the detailed reply on how long it might take, the trustee has my $$, just waiting for them to dispurse it now.