Payoff Chapter 13 amount

[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.

[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]

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]

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.

[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.

[LadyInTheRed]

I am in a 60 month plan, so if I put 50 months that was a typo. No I was not under the median income. My attorney said that I have to stay in the plan for a minimum of 36 months to avoid 100% payback. After 36 months I can complete the payoff based on my % payback.

I won't believe what your attorney said until you come back and say you paid off your plan early without paying 100% of unsecured debt and received a discharge.

[Air00Max]

I am in a 60 month plan, so if I put 50 months that was a typo. No I was not under the median income. My attorney said that I have to stay in the plan for a minimum of 36 months to avoid 100% payback. After 36 months I can complete the payoff based on my % payback.

[justbroke]

I agree. I would not look a gift-horse in the mouth; so the saying goes!

[LadyInTheRed]

My attorney told me that I could pay the pay the plan off after 36 months, since I am in a 60 month plan. Which is what I'm planning on doing.

In earlier posts you said you were in a 50 month plan. I suspect your income was under median when you filed, so your minimum commitment period is 36 months. Is that true?

[LadyInTheRed]

Did any of the unsecured creditors file an "allowed" claim?

Based on other threads, apparently so. Andyman's attorney doesn't even understand why the plan ended early. From his thread:

I just got off the phone with my attorney and he said he's seen several CH13 plans that have ended this way...he said he wasn't even going to ask why and neither am I!!

http://www.bkforum.com/showthread.php?79140-Yahoo!!!!!!&highlight=

[Air00Max]

My attorney told me that I could pay the pay the plan off after 36 months, since I am in a 60 month plan. Which is what I'm planning on doing.

[justbroke]

I was in a 5 year plan with two secured creditors and three unsecured. I got a letter from the trustee saying my plan was complete and yet I had one year remaining. The letter said to not send anymore money. Today, I got a check from the trustee for $95 with a note from him saying to deposit the check upon reciept as a Final Report cannot be filed until checks have cleared.

Did any of the unsecured creditors file an "allowed" claim?

[Andyman]

Is it possible to payoff the amount of your Chapter 13 settlement or are you totally obligated for the entire 5 years?

Thanks
Bill

I was in a 5 year plan with two secured creditors and three unsecured. I got a letter from the trustee saying my plan was complete and yet I had one year remaining. The letter said to not send anymore money. Today, I got a check from the trustee for $95 with a note from him saying to deposit the check upon reciept as a Final Report cannot be filed until checks have cleared.

[spidge]

I qualified for a 36 month plan (way too high for me) but was given a choice, and I went the 60 month route. I am in a 3% plan with a lien strip and have been wondering about this very question myself. Please bare with me for a moment.

If an under median filer chooses the 60 month plan can he/she buy out of the remainder after 36 months even though that payoff balance is based on the original percentage of pay back and is less than 100%(full payback to all creditors) of the overall balances owed the creditors?

What is considered when satisfying the BK13? Time or amount paid (regardless of payback %)? Both? Is it district to district?

I am sure many here have answered this before and thank you again.

[fastcars69]

Thanks for your help all.