Confession...am I sick or what?

[bkdone]

I live in Arizona. I dont know all of the ins and outs of BK13, but the trustee and my attorney both calculated my payoff the same way. Here was my scenario briefly:

March 2004, Case filed and later confirmed. Payments were $1000 per month for 56 months...$56,000 total. Roughly $40K was secured debt and the other $16K was unsecured debt. But, with trustee fees, attorney's fees, interest...etc...the unsecured debt was not going to be paid...it was to be discharged if I completed the BK.

June 2006, after 26 months ($26K having been disbursed) I still owed $23K secured, $6K in unpaid interest on the secured, and the original $16K unsecured...Total of $45K. After getting the refinance approved, the total amount that I had to pay to get out of BK was the difference between the originally agreed amount $56K and what I had already paid...$26K. So, subtact $26K from the $56K original amount...it leaves $30K...which is all I paid to completely get out of my BK. The unsecured debt is discharged!!

On NDC, when the $30K check was posted to my account, my status was updated within a couple of days to 'Completed'.

Nice!

[Jman30]

bkdone,

great information, thanks.

Another question...was your chapter 13 paid via payroll deduction?

If so, how long did it take to stop?

[bkdone]

No, we bought money orders each month and mailed them in. Our attorney said that they usually dont order payroll deduction unless you start falling behind in the payment or you habitually pay late.

[Jman30]

No, we bought money orders each month and mailed them in. Our attorney said that they usually dont order payroll deduction unless you start falling behind in the payment or you habitually pay late.

Damn, mine was just part of the filing. I didn't have a choice. Even before I made the first payment, the Trustee sent a payroll deduction order to my employer.

One more question...when are you NDC...is the amount you owe for SECURED items under SCHEDULED AMOUNT or PRINCIPAL OWED at the bottom of the Claim Summary page?

[bkdone]

Damn, mine was just part of the filing. I didn't have a choice. Even before I made the first payment, the Trustee sent a payroll deduction order to my employer.

One more question...when are you NDC...is the amount you owe for SECURED items under SCHEDULED AMOUNT or PRINCIPAL OWED at the bottom of the Claim Summary page?

The $30,000 amount that I paid off the BK with isnt either one. On NDC, the schedudled amount is $43,500 roughly and the principal owed is $39,500 roughly. The $30,000 payoff is the orginal amount (all creditors) $56K minus the $26K that I've already paid, prior to the refinance. It would appear as if I am paying everthing off at 100%, but there has been alot of interest added from my secured items, which has been paid during the past 26 monthly payments.

In essence, the money that the unsecured debt would have gotten has been taken up by secured debt interest over the course of the past 2+ years. So, the unescured are not getting much in the end... maybe $1000 to share among all of them. I had $16K in unsecured debt.

I dont really understand it all really. All I know is that I completed my BK with a $30K payment and I still owed $43,500 on my plan.

[Jman30]

The $30,000 amount that I paid off the BK with isnt either one. On NDC, the schedudled amount is $43,500 roughly and the principal owed is $39,500 roughly. The $30,000 payoff is the orginal amount (all creditors) $56K minus the $26K that I've already paid, prior to the refinance. It would appear as if I am paying everthing off at 100%, but there has been alot of interest added from my secured items, which has been paid during the past 26 monthly payments.

In essence, the money that the unsecured debt would have gotten has been taken up by secured debt interest over the course of the past 2+ years. So, the unescured are not getting much in the end... maybe $1000 to share among all of them. I had $16K in unsecured debt.

I dont really understand it all really. All I know is that I completed my BK with a $30K payment and I still owed $43,500 on my plan.

I got an "unofficial" payoff letter earlier this year of $27,000. It basically said that this was an unofficial payoff and was an estimate based on what the computer said I would owe at this point. Do you know how much the OFFICIAL payoff will be - as in, will it be WAY more than the $27,000 or is that $27,000 pretty accurate?

[bkdone]

I got an "unofficial" payoff letter earlier this year of $27,000. It basically said that this was an unofficial payoff and was an estimate based on what the computer said I would owe at this point. Do you know how much the OFFICIAL payoff will be - as in, will it be WAY more than the $27,000 or is that $27,000 pretty accurate?

Funny you mention OFFICIAL pay off letter. The official letter is what held up my refinance for 30 extra days. The title company kept asking the attorney for an OFFICIAL pay off. The attorney asked the Trustee for an OFFICIAL pay off. The trustee sent the attorney a screen printed page from NDC and highlighted the starting total, and notated to subtract the amount of my payments and that was the payoff amount. Of course when the attorney turned around and gave it to the Title company, they laughted. In the end, when I closed on the Refinance, they still didnt have an official pay off, they used the calculation that the trustee told them to use and they went with it. The Title company could not hold the file open any longer and they figured if the payment was short, we'd just have to pay the extra. But, the payment was right on...actually a bit high, so we'll be getting a $400 refund from the BK Court. Gotta love that!

[Jman30]

Funny you mention OFFICIAL pay off letter. The official letter is what held up my refinance for 30 extra days. The title company kept asking the attorney for an OFFICIAL pay off. The attorney asked the Trustee for an OFFICIAL pay off. The trustee sent the attorney a screen printed page from NDC and highlighted the starting total, and notated to subtract the amount of my payments and that was the payoff amount. Of course when the attorney turned around and gave it to the Title company, they laughted. In the end, when I closed on the Refinance, they still didnt have an official pay off, they used the calculation that the trustee told them to use and they went with it. The Title company could not hold the file open any longer and they figured if the payment was short, we'd just have to pay the extra. But, the payment was right on...actually a bit high, so we'll be getting a $400 refund from the BK Court. Gotta love that!

Did you get an "unofficial" payoff at any point? If you did, was the amount higher, lower or basically right on for the "official" payoff?

[bkdone]

Did you get an "unofficial" payoff at any point? If you did, was the amount higher, lower or basically right on for the "official" payoff?

The official and unofficial was one in the same for us. No official letter ever showed up. But, the figure was right and the title company closed the loan with it. Loan funded 3 days later.

[Jman30]

I hope so....as long as the numbers are about the same, and barring any unforseen problems, I should close this week....