Early Payoff - Missouri - "New Law"

[aa06a47]

I am approaching my 3 years in my chapter 13. I contacted my attorney concerning paying off early. She of course said I could, shouldn't be a problem. However, I just received a letter from her stating the court in MO is not allowing early payoffs for above medium filer.

Just an FYI....and not sure if it is only Missouri.

Has anybody else inquired concerning early payoff. I really wasn't that interested in doing it, however with my job situation, potential loss of it... I felt it best to get this past me. Now, I just pray I don't have to look for a new job with an active chapter 13 going on.

[EricaCallaha]

The laws make it impossible to pay off early unless you are in a 100% payback plan. Unfortunately, that goes for everyone....as far as I can tell.

Bummer.

[blindsided]

This may be something that you just have to wait until it happens to deal with. If you do lose your job then you might be eligible for a hardship discharge without a payoff. But obviously you aren't eligible based on being nervous.

[justbroke]

Actually, there is early payoff in a Chapter 13 case that is under 100%. You just pay 100% to the unsecured creditors, as well as satisfy all the arrearages in the Plan.

So, yes... it can be done.

No, you can't do it without paying 100% fo the unsecured creditors.

[EricaCallaha]

Well shoot, I stand corrected. Yikes, I don't think that is going to be an option for me.

[aa06a47]

There have been recent rulings defining if congress intent was time (ie, 5 years) or based up 5 years of disposible income. Based on a couple of rulings I read, one from Missouri by the way, it appeared to me that the general rulings have been 5 years of disposible income. After all, most creditors would rather have there % now (whatever that % is) vs waiting the entire 5 years to get it....with the depression we are in I doubt most % will not go up. Plus, I think most trustees would rather get another one off their books.

This forum helped me through this process 3 years ago...cannot believe it has been that long. I drop in from time to time to see and sometimes respond to the post. It is remarkable that alot of the questions now are the same ones I had 3 years ago. Those just now filing, keep up the faith, I've made it 3 years now, it goes pretty fast...just not fast enough!!!! :-)

[justbroke]

There have been recent rulings defining if congress intent was time (ie, 5 years) or based up 5 years of disposible income. Based on a couple of rulings I read, one from Missouri by the way, it appeared to me that the general rulings have been 5 years of disposible income.

Do you have sources for these. I have tons of caselaw that I keep around, in case I need to plead something.

Plus, I'd like to review it.

[aa06a47]

Do you have sources for these. I have tons of caselaw that I keep around, in case I need to plead something.

Plus, I'd like to review it.

I am trying to find it. I know it is located somewhere in here.

http://www.mow.uscourts.gov/New_Opinions.html

I remember sending it to my attorney asking if this meant an early pay off was possible...and she said YES at that time. Guess things changed. If I can find it, I will send you the exact link.