Early payoff???

[LadyInTheRed]

Spidge, was your income above or below median at the time you filed? If below, do you have any non-exempt assets or arrears on secured debt that creates a minimum that you must pay to unsecured creditors? In other words, if you are below median, why are you in a 60 month plan?

If your income was above median, you would have to pay 100% of unsecured claims, including the stripped lien, in order to complete your plan early.

[spidge]

Spidge, was your income above or below median at the time you filed? If below, do you have any non-exempt assets or arrears on secured debt that creates a minimum that you must pay to unsecured creditors? In other words, if you are below median, why are you in a 60 month plan?

If your income was above median, you would have to pay 100% of unsecured claims, including the stripped lien, in order to complete your plan early.

I was below median and have federal and state taxes along with mortgage arrears in the plan. The rest of the creditors are all unsecured and payback is 3 percent. No car notes involved as they were paid off and of little value. The note holder on the lien to be stripped did not make a claim in the BK.

I was given the option for 36, 48, or 60 months.

Thank you for your time.

[LadyInTheRed]

You may be able to pay off your plan after 36 months. Talk to your attorney after your 36th month. Borrowing from your 401k is probably not the smartest move. You'll just be trading one payment for another. If you lose your job, the loan will accelerate and trigger an early withdrawal penalty (if you are not of retirement age) and income taxes. If you don't have another way to pay off the plan, I'd stick with the security the Chap 13 provides.

[spidge]

Thanks for the response and the reminder that the 401k should be left alone. Everytime that I have drawn from it I have regretted it for one reason or the other, especially to draw off it to make mortgage payments. I would be well funded in my 401k right now if I had not touched it.

I will be patient and stay the course until the timing is right and the funds are in hand, as there are many ways to skin this cat.