Payoff Chapter 13 amount

[Limitman]

I was in a 5 year plan with and 87% payback. I was over the median income. I was just at the 36 month mark when my Mom offered to pay off bankruptcy. My attorney said she wasn't sure if the trustee would allow it but she would ask. He did allow it and sent a payoff amount which ended up with being the 87% payback. So I guess I was lucky as that was a year ago and now things are much better.

[justbroke]

A payback of 87% is a high amount. Anything over 70% is treated differently. it's nice to see that some Trustees are allowing payoff after 36 months in certain cases. However, it is not common especially for those with a very low packback percentage.

[jange]

A payback of 87% is a high amount. Anything over 70% is treated differently. it's nice to see that some Trustees are allowing payoff after 36 months in certain cases. However, it is not common especially for those with a very low packback percentage.

justbroke i never heard before that paybacks of 70% are treated differently. Can you tell me how they are treated differently? We are at 70% payback and we are now starting year 4. I never hear from the trustee except for our annual statement and I do not need to submit my tax forms every year.
I am not in a position to pay off the balance, but I am curious now. thanks

[justbroke]

In the code, a payback of more than 70% allows you to file a Chapter 7 and receive a discharged after 6 years, rather than 8 years! Plus, you would generally receive much less scrutiny and angst from the Trustee (and/or creditors) if your plan pays back 70%.

[jange]

thanks justbroke, it seemed like we got a lot of scrutiny in the beginning, but really not compared to some people here. Now we just keep our heads low and send in the payment on time and life go on.