Pay off Early?

[JohnB321]

My ex and I have been paying off a 5-year, chapter 13. It started off where we were paying 70% but some creditors didn't file a claim so it went up to 100%. We are scheduled to complete around December of next year but we are paying $1100/month and owe around $9k.

Will it be completed earlier or do they still keep taking the payments?

Thanks in advance for any answers...

[newbie2]

You'll pay until you reach the 100% threshold. They can't take more than that. Congrats!

[Flamingo]

You will need to make payments to the last date indicated on your Chapter 13 Plan. A few months prior to that date, contact your attorney that you are reaching the end of your Plan and you will be instructed what to do. You may have to make all payments and will be refunded any overpaid amount when your Chapter 13 is audited, as they all are after the final payment is received and prior to discharge.

[jcj112562]

I would suggest that you keep track of all of the balances listed on the NDC for the claims in your case, along with the payments you make. When the trustee is about to get the payment that pays off all allowed claims, speak with your attorney and tell them that the trustee has (or will have), all funds required to complete the plan. I know in my case, I paid off about 3.5 months worth of money to the trustee, and as soon as they knew the plan was completely funded, they issued a letter to cease the payroll deduction (the first real check just appeared in my account this morning) They do not necessarily keep taking payments for all 5 years, but they will only stop taking them once they audit the plan and see that indeed, it is 100% paid off. Just my 2 cents..keep the change.

John

[tbon]

What i'm wondering is this... all of the sudden we get a letter in the mail (about 3 months ago) stating that we need to send our payment to another state instead of the original state we filed/live in. We are almost 48 months into our 60 month plan... I contacted our attorney to make sure this was legit, she said yes, send it to Tennessee where instructed....what does this mean?! All correspondence is still sent to city in our state, but money is sent to TN?! I dont get that...

[enginegirl]

contacted our attorney to make sure this was legit, she said yes, send it to Tennessee where instructed....what does this mean?! All correspondence is still sent to city in our state, but money is sent to TN?! I dont get that...

I am in Florida and also send my money to TN.... it is logged there and then sent on to my trustee... maybe system just changed? maybe the service is cheaper in TN

[tbon]

hmmm....ok~ well thanks enginegirl! thats interesting! I always sent mine to Oklahoma City before! HA! was hoping since we r getting close to the end that MAYBE the last year or so it is sent there for board to review....early release... no such luck I guess! thanks!

[goon]

Some trustees have staff that handles incoming payments, some pay services to handle the recording of the payments for them. Sounds like yours has a service handle it and decided to change services ( or the office of the service moved).