Chapter 13 early pay off

[Pumpkin729]

"All cases must run at least 36 months unless all allowed claims are paid in full under the terms of your confirmed plan. Do not attempt to payoff your plan early without consulting with your attorney. All payoff request must be made by filling the proper paperwork with the Court and having the Court enter an Order for the Trustee to provide a payoff figure."

It is very plain to see they want your life for 3 years unless you can pay all creditors 100%... then after that you can petition the court for a payoff amount. I am not sure if the trustee will allow you to pay the pot or not.[/QUOTE]


Okay....I have a question.

If we decided to payoff Ch13 early ( at 37 month) we just pay the pot? Is there a chance that when we go to payoff early (as stated above 37 month)will the trustee hit us with you must now pay 100% of the plan or is that just if you try to payoff before the 36 months?

[13inOR]

My understanding is that the 100% rule is only in play before the 36 months is up--what percentage you have to pay AFTER that I think depends on the trustee. Everything I have ever read, including the NOLO book, states that payoff before 36 months will result in 100% payback. SO 36 is the magic number I guess.

[bkbiker]

[Anj]

I posted another thread on this - but my lawyer is ADVISING us to buy out the of 13 if possible - we are at 100% payback

So - I go on the trustee site - it says 46k and change we still owe at 100% payback for 48 months. THEN I get a note from my law office that says they've bumped us up to 58K for 60 MONTHS and that after 36 months they will begin revaluating what needs to be paid (or something to that effect). SO - I'm thinking - for us anyway - we will sit on this for a year or two - get more money in the system - and then refi when we can get more equity. We are in month 6 (ha ha, such babies in the great scheme of things).

We did a 13 because of back mortgage payments. So far on the trustee report - the mortgage company is getting a fair amount of my 965/month. Anyway - ... we are here, early payoff IS in our future, but the time isn't right for us yet.

[aa06a47]

Exactly, that is why I was puzzled when my attorney said if I have any extra per month left over I should mail it to the trustee so I can get done sooner. I won't follow that advice.

Possible sources of money to pay back early (after 36 months) is 401k loans, home mortgages, etc. If by some miracle, you were able to save enough money to pay off the entire balance of the pot after 36 months, I would be a little leary of doing so. I would do a loan to show the trustee where the money is coming from, then pay it back quickly.

[aa06a47]

I posted another thread on this - but my lawyer is ADVISING us to buy out the of 13 if possible - we are at 100% payback

So - I go on the trustee site - it says 46k and change we still owe at 100% payback for 48 months. THEN I get a note from my law office that says they've bumped us up to 58K for 60 MONTHS and that after 36 months they will begin revaluating what needs to be paid (or something to that effect). SO - I'm thinking - for us anyway - we will sit on this for a year or two - get more money in the system - and then refi when we can get more equity. We are in month 6 (ha ha, such babies in the great scheme of things).

We did a 13 because of back mortgage payments. So far on the trustee report - the mortgage company is getting a fair amount of my 965/month. Anyway - ... we are here, early payoff IS in our future, but the time isn't right for us yet.

When you say you were bumped up from 48 month to 60 months, I must ask, were you in a confirmed plan yet? I don't see how you were just bumped up 12 more payments without a hearing or anything if you were in a confirmed plan. Please share if you know why / how your payment lenght got changed. Plus, if your 100% plan, what gives, what gives that they are getting another 12K from you?

6 months, I'm starting month 3 now, still no confirmed plan.

[aa06a47]

Ruling from Missouri

http://www.mow.uscourts.gov/opinions/bankruptcy/venters/schanuth.pdf

If your in a 5 year plan and read this ruling, you will be depressed. Hoping it gets appealed prior to my term coming due. (note, start on page 5 of the ruling, you can read the whole thing, but page 5 talks about committment period)

[lrprn]

[aa06a47]

That is exactly how I'm reading it.

Here is another ruling, page 11 , different judge, same district.

http://www.mow.uscourts.gov/opinions/bankruptcy/federman/mcguire.pdf

[bobby125]

FYI

my attorney:

after 36 months you can do an early payoff, before then, absolutely not, and if you bring it up, they will come after you for what you have

there are three trustees in Atlanta. Two will let you do the early payoff, one will not

[anonymuse]

I don't have my Nolo book with me, but I'll see exactly what it says about early payoffs and share it here tomorrow.

[Anj]

When you say you were bumped up from 48 month to 60 months, I must ask, were you in a confirmed plan yet? I don't see how you were just bumped up 12 more payments without a hearing or anything if you were in a confirmed plan. Please share if you know why / how your payment lenght got changed. Plus, if your 100% plan, what gives, what gives that they are getting another 12K from you?

6 months, I'm starting month 3 now, still no confirmed plan.

First Amednded Chapter 13 Plan
Debtor is to pay by waage assignment $965 per month for 60 months until $57,900 is paid (plus *); and a minimum of $39,995 is paid to unsecured creditors.

Wow - I'm confused... I just made an appt.

[Anj]

INTERSTING INFORMATION
_______________________________________________

I stopped by the law office this am to give them the "amended" form. The issue was they had my husband's income wrong - ANYWAY, the paralegal and I were talking back and forth, and she mentioned this...

You can buy out of your 13 whenever you want, HOWEVER, you will be Dismissed... when you are dismissed - you can pic and choose the things you want to pay and then go to the creditor to make arrangements on other things. She advised if we are talking to mortgage companies for refinance, that we should contact the law office immediately so they can be ready to petition the trustee.
I didn't get a clear answer on how this is reported on your credit - she said a 13 is a 13 on your report - it stays. I asked if a dimissal would reflect worse than a discharge - and she said "it's all not good"

So the answer I guess (sort of) is you can buy out whenever you feel like it, if you are confident you can work out payment plans with your creditors. In my case, I don't owe any credit cards - only student loan and fees for mortgage arrearages. Also, remember, I am 100%. So I could refi and pay the mortgage arrearages and reafirm a payment plan with the student loan company and walk away... credit score, in the crapper - but mortgage company is taken care of.

Ugh - I hate thinking about this... ha ha

[bobby125]

Everything you hear is so different??!!??!?!?!?! man.....

my lawyer was pretty adamant about the 36 month rule. Unless you are in a 100% payback

for example I am paying back 40% or lets say $40,000 of a $100,000

If I came back in 6 months and said I had $38,000 or whatever to pay it off, they would say, okay lets have that $38,000 and keep paying.

like I said, it looks like there are no clear cut answers

[Anj]

I am 100% - so they want me for EVERYTHING