attorneys intention

[cnet2k]

Hi,

My wife has a new bk (4mths into the plan) that we are considering paying it in full knowing we have to pay it at 100% (ouch). I relayed this to my lawyer and he is discouraging us to go that route...

Is there any incentive for him for us to stay in the plan?

[FilingOnMyOwn]

He might be looking at it from an investment/inflationary standpoint. For example, 1000$ today, invested could be 1500$ in 3 years. In 3 years, paying 1000$ to your creditors would cost you less than what it does today, maybe only 900$ of today's dollars. So you could invest the money you have now, pay it off as scheduled, and end up with more money in the long run. If you are a cash person and not one to invest, then I would disregard this theory.

[Rover]

You payment plan must be set up to repay less than 100%. I would expect that your attorney is questioning why you would want to pay 100% just to end the BK early. Sounds like good advice to me.

Why would you want to pay 100% instead of something less?

[Anj]

we ARE at 100% and my attorney is encouraging us to refi out if we can - right now we can't...
It's the 100% rule - unless you start there, it's not best to go there...

[aa06a47]

Hi,

My wife has a new bk (4mths into the plan) that we are considering paying it in full knowing we have to pay it at 100% (ouch). I relayed this to my lawyer and he is discouraging us to go that route...

Is there any incentive for him for us to stay in the plan?

There is no financial incentive for your attorney, but he is giving you good advice. Wait 3 years, then try and buy out of it.

If your in a Chapter 13 for 4 months and there was no real change in your financial picture, and you want to buy out of it, I have to question if you even should have filed in the first place. Yes, you win a million in the lottery, I can see that, but to have went through all that crap and expense of filing BK to throw it all away.

Listen to your lawyer, he is trying to give you some good advice.

[anonymuse]

If your in a Chapter 13 for 4 months and there was no real change in your financial picture, and you want to buy out of it, I have to question if you even should have filed in the first place. Yes, you win a million in the lottery, I can see that, but to have went through all that crap and expense of filing BK to throw it all away.

I guess you were reading my mind on that one. When you hear of everyone having such a hard time getting through the month with all their disposable income going to the plan and that a lot of Ch 13's are unsuccessful, I don't understand how someone can try to buy out of their plan after only 4 months.