Chap 13 Payoff Question

[Jman30]

Hello -

Long time no post! Been crazy busy lately.

I am 19 months into a 48 month Chapter 13. I recently ordered a payoff letter, to see what I owed on the Chapter 13 if I wanted to refinance out of it. Just to run the numbers around.

The "unoffical" payoff came in at just over $27,000. Is this the approximate number to be used if I was to to try and refinance my house and payoff the 13? Or is this number only the 11% of unsecured debt plus secured debt?

I guess what I am asking, is....if a lender asked the Trustee for the OFFICIAL payoff, would it be this $27,000 figure? Or more?

And I know it is stupid to do this...I am not planning on it. Just looking at numbers.

[SinkingFast]

13inOR would be the one to chime in here. You're both Old Law and 13 did what you're wanting to do.

Hopefully 13 will see this and post an answer for you.

And,........... Good to see you back, JMan!! You were missed!!

[13inOR]

Well, in our case, it was 100% plan so it was pretty much a no-brainer, what we owed was easy to figure, what we started with minus what we had paid in.

One thing you might check is look at the NDC site and see what you started with and add up what you have paid into it. You can probably get a pretty good idea from doing this. In our case the payoff amount was right on the money. Does 27,000 seem like what you might have left after paying what you have, considering what your debt started at? (I mean 11% of it anyway)

I hope that helps a little! Have a good weekend.

[bkdone]

I just am at the end of the refinance process...ending the BK 26 months into a 56 month plan. I paid $1000 per month, hence the $56K starting balance. Because the court is only concerned with the secured claims, I only had to pay $30K and not the $41K balance that NDC was showing. Although I was at a 100% claim, only the secured gets paid. The unsecured balances are discharged...

[M900]

I signed my refi papers on monday hopefully the loan will fund on friday, I am 37 months into a 55 month plan. My attorney told me if I tried to pay off the ch.13 before the 36th month I would have had to pay %100 of all my creditors since I waited I only had to pay the remaining balance which was $12k. FYI this whole process took over 2 months and had many snags including a lien stripped from my house which was legally stripped but I had trouble getting the first title company to give me title insurance even though I had a court order stripping the lien!! Then when I refi'd several years ago the mortgage company never released title so it looks like I have 3 mortgages my title company is working with my current 2nd mortgage, the company is sending proof that they paid off the original 2nd mortgage so they can now be paid. It has been a long journey one I will never repeat. I am now debt free besides my house and intend on staying that way!!

[Jman30]

I just am at the end of the refinance process...ending the BK 26 months into a 56 month plan. I paid $1000 per month, hence the $56K starting balance. Because the court is only concerned with the secured claims, I only had to pay $30K and not the $41K balance that NDC was showing. Although I was at a 100% claim, only the secured gets paid. The unsecured balances are discharged...

Bbkdone, so if I understand you correctly, when you refinanced, the trustee only made you pay back the SECURED claims at 100% and they discharged the unsecured claims entirely?

[Jman30]

And,........... Good to see you back, JMan!! You were missed!!

Thanks SinkingFast!

I just need a break, you know? Sometimes I think I was obsessing over the BK. I just needed to let it ride for a few months. Things were going smooth so I let it run in auto-pilot for awhile and sort of tried to ignore it.

But I am back now....recharged and ready to contribute to this wonderful site that has helped me so much!

[13inOR]

Bbkdone, so if I understand you correctly, when you refinanced, the trustee only made you pay back the SECURED claims at 100% and they discharged the unsecured claims entirely?

Thats interesting, I guess it just depends, because in our case, our 100%
was both secured and unsecured. I think the difference was probably because our plan was only a 29 month one. I guess they figure if your total debt can be paid in less than 36 months then there is no reason to not pay 100% of secured and unsecured. Thats my guess anyway. Then we actually refinanced at 19 months.

[Jman30]

Thats interesting, I guess it just depends, because in our case, our 100%
was both secured and unsecured. I think the difference was probably because our plan was only a 29 month one. I guess they figure if your total debt can be paid in less than 36 months then there is no reason to not pay 100% of secured and unsecured. Thats my guess anyway. Then we actually refinanced at 19 months.

I think alot of this depends on the Trustee as well. In doing all my research and reading, it seems that Trustees has alot of leeway in how they interpret BK law. They can make you pay back 100%, they can make you only pay secured or they can have you pay back at whatever % you are paying.

I think the $27,000 is approximately what I will owe on a payoff. I think my total debt when I filed was around $31-$35K or so. So after 19 months, this would make sense.