Ch 13 payoff?

[13inIN]

I am in a 5 yr plan, started 8/2007, not confirmed until 9/2008

So here we are, roughly 21 months paid, 39 to go.
I have seen several statements around the net about early payoff after the 36th month, but most of those seemed to be pertaining to pre-BAPCA plans.

The plan was confirmed for $x/week plus net bonuses. Will the base amount the trustee expects to see simply move up by the bonus amount as I send in the extra checks? OR will it pay us off faster and make a post 36th month payoff within reach? (we will not reach 100% payoff either way)

I would be borrowing the payoff amount from family at the time if it is still possible to do.

[lrprn]

The current bk law passed in 2005 did not include the same Ch 13 early pay-out after 36 months as existed pre-BAPCPA. At this point, each court and Ch 13 trustee is proceeding as they interpret the law to mean.

You need to ask your lawyer what your local court has decided to do about early pay-outs. Hopefully you'll be in one of the courts that is allowing it for cases filed after October 18, 2005.

[Clouddancer]

Is there a website that has each district's difference in applying the BK code?

[HHM]

As far as I can tell, there is no district specific difference on this issue, you cannot buy out early for less than 100% of unsecured claims. However, the issue is just beginning to be litigated. Given the real estate market, not many people are in a position to buy out anyway.

[13inIN]

Bummer. I was getting my hopes up for an earlier exit.
So unless I come into some unexpected dough, 39 months to go.

Thanks. I'll keep my eye out for cases that change the scenery. Please message me if you see anything new.

[BigJohn]

The Trustee send us a letter that if we bought out early, we would have to do it after 36 months and what we would have to pay back is our monthly payment X 48 [months]. we are paying back close to 0% to unsecured creditors. If we want to get out sooner then 36 months, we would have to pay back everything at 100%.

[BNKRPTinNC]

Inquiring minds want to know

Pardon my ignorance but why would one want to "buy out" early on a 13? Even if you only had to pay the balance of secured that would be owed if you paid until the end of the plan I don't see the reason unless it is to save interest payments for the secured & trustee.

[Flamingo]

Pardon my ignorance but why would one want to "buy out" early on a 13? Even if you only had to pay the balance of secured that would be owed if you paid until the end of the plan I don't see the reason unless it is to save interest payments for the secured & trustee.

There are reasons for people to have to buy out early if they are able to buy out early; our situation, for example. Our roof would not last another 1 1/2 years until the last payment of our Chapter 13 (very bad leakage). We had to get a new roof, a new front window damaged from the leak and new downspouts and guttering. You are talking bucks we just could not save in our money jar. We had more than enough equity. We investigated buying out and had to obtain mortgage acceptance paperwork and provide it to our attorney and trustee. It took a while (about 6 months total) from start to finish but we bought out at approximately month 48 of our five year plan. And just in time We only refinanced for the amount we needed for the repairs and to buy out. We had a great deal of equity remaining after that (2006). So there are good reasons to buy out early. Otherwise, I would not recommend it and it is long process to refinance while in a Chapter 13 anyway so one has to weigh out the options and timing.