I am into the 37th month of a 59 month plan. I called my attorney's office and asked if I might options of paying my 13 off early since I have been paying on time and have been current the better part of 3 years. Their suggestion was to call the trustee's office and explain that I either have a relative that has offered to pay off the remainder of what is owed or that I refinance my house and pay the remainder off after refinancing. I do have a relative who has offered to lend me money to pay this off. Since I have paid for over 36 months, can I pay off the remainder from a loan from a relative???
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Will you be receiving a gift to pay off the Chapter 13, or will you be taking out a loan from a relative to pay off the Chapter 13. It seems there'd be a big difference. -
It would actually be a gift...Comment
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So you misspoke in your original post? It's now a gift, free and clear, and not a loan?Originally posted by bill6611
You and your generous relative will be in serious trouble if you "fib" about this. You can certainly tell the trustee that it's a gift. Oh, and be sure to check the gift tax implications which depend on the amount gifted. You could then "repay" your relative, but if you stopped paying, the relative would have no recourse. They'd be out the money. They couldn't claim in court you owed them anything since you had previously sworn the money was a gift.
The fact is that many Chapter 13 bankruptcies fail. Having someone else pay all your debts in this case is likely not going to help you. Essentially you'd be filing a Chapter 13 with the benefits of a Chapter 7 since you wouldn't actually be repaying anything.Comment
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First off, what was the reason to be in a 59 month plan, vs. the regular 36 month plan?
Do you know how much you need to pay off. Since you are past 36 months, I believe you can pay off the balance of your plan and not be required to pay off 100% of your unsecured creditors.
Why, specifically, do you want out? Afterall, you did propose the plan. I understand things change. But what is so hard about the plan, you are making a single payment to pay back all the creditors you included in your plan, what is so hard about that. What I think tends to happens is as the plan goes on, people forget the financial difficulties that drove them into bankruptcy in the first place. You need to remember where you would probably be today had you not filed bankruptcy.
Honestly, what is the difference...between paying the trustee and repaying this relative. If this relative is "really" just going to "give" you the money, sure, go ahead and pay off the plan. However, if you are goint to have to pay back this relative, just finish the plan.
At least you completed the intial 36 months, what irks me are the people who barely get 6 months into a plan and are already thinking about paying it off, it was that kind of poor decision making that probably drove them into bankruptcy in the first place.Comment
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Since it is a "gift" you would probably benefit the most by having your "relative" put the money in some sort of investment or savings like a 24 month CD and when the CD matures in 24 months you will be 4 months out of bankruptcy and you can receive this "gift" with some interest. It must be hard being in a 13 but in 2 years no unsecured bills and a nice gift! I'll take it myself!
Good luck!!Comment
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Good call.Originally posted by hhou812hhSince it is a "gift" you would probably benefit the most by having your "relative" put the money in some sort of investment or savings like a 24 month CD and when the CD matures in 24 months you will be 4 months out of bankruptcy and you can receive this "gift" with some interest. It must be hard being in a 13 but in 2 years no unsecured bills and a nice gift! I'll take it myself!
Good luck!!Comment
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