More Ch 13 question

[badandy]

Can someone explain what happens if you file for ch 13 and then later change job with more pay? Also, assuming you enter into ch13 and then setup a payment plan for 5 years, can you pay the whole amount off early assuming you can get the money to do so?

[qwertysue]

Can someone explain what happens if you file for ch 13 and then later change job with more pay? Also, assuming you enter into ch13 and then setup a payment plan for 5 years, can you pay the whole amount off early assuming you can get the money to do so?

More pay is a vague term. A lot will depend on your district/trustee should your pay increase. Some trustees will request tax returns and any refunds every year. Others won't ask for anything. Sorry for the vague answer.

As far as early payoff, I am not sure. I know old law early payoff was possible.

[Flamingo]

When/if your income rises during your Plan, you need to report that income increase to your attorney who will advise you whether or not your Plan will need to be modified. What you need to know is that from the time you file until the time you are discharged, the Trustee is in control of your finances and if money comes in that could increase your disposable income, that extra money is available for disbursement to your creditors over and above the percentage you are paying creditors in your Plan. The same applies as to if you have a decrease in income during your Plan.

When there are changes to your finances during your Plan, always contact your attorney who will advise you accordingly.

[Flamingo]

Can someone explain what happens if you file for ch 13 and then later change job with more pay? Also, assuming you enter into ch13 and then setup a payment plan for 5 years, can you pay the whole amount off early assuming you can get the money to do so?

I answered your income increase question in a previous posting but missed your payoff question. Under the old law Chapter 13 (prior to 10/05 if the matter was filed before that time), at month 36 of your Plan it would be possible for one to investigate buying out of their plan early. Under the new law, the three year mark has not yet hit and no one has yet posted any information on whether or not that is still allowable under the new law. No one has yet been able to buy out of a Chapter 13 early that has posted on here that I am aware of. We bought out early in our old law Chapter 13 after obtaining permission to do so and also having enough equity in our house to refinance and pay off the plan in full and do major, much needed could not wait repairs to our house.

[PoorGrammyinBK7]

Flamingo, what do you make of this?

<<<This is the situation that I ended up with. The lawyer I have specializes in setting this up. I pay $199/mo for 11 months. That pays the attorney and the trustee and i'm done.>>> (Was posted under the thread "Lowest 13 payment" by EveryDayAdam)

I thought it had to be between 36 months and 60 months....

[Flamingo]

Flamingo, what do you make of this?

<<<This is the situation that I ended up with. The lawyer I have specializes in setting this up. I pay $199/mo for 11 months. That pays the attorney and the trustee and i'm done.>>> (Was posted under the thread "Lowest 13 payment" by EveryDayAdam)

I thought it had to be between 36 months and 60 months....

There is always more to a situation than meets the eye - that's what I have to say....