Filed Chapter 13 with 0% repayment of unsecured debit.

[mrcnc64]

I filed Chapter 13 in Jan-2003. It is supposed to be for 57 months. 0% repayment on the unsecured debit. I received a notice from the trustee that all secured debit has been paid, and that he wants the judge to release his trustees bond. In the same notice I received a request for the judge to increase the % of payment to the unsecured debit. I was informed that after 36 months that you could pay off your bankruptcy early with out having to increase the repayment of the unsecured debit. Is this true?

Thanks

[aa06a47]

That seems to be the general consesus around here, if you make it 36 months, you might be able to pay the rest off early. But then again, check with an attorney/trustee.

[StaciMM]

What I've heard is you can 'refi' out of your BK after 36 months without paying 100%, but I don't know the process. My best guess is it is not automatic, that a motion of some sort must be filed and the trustee must approve.

[Jman30]

What I've heard is you can 'refi' out of your BK after 36 months without paying 100%, but I don't know the process. My best guess is it is not automatic, that a motion of some sort must be filed and the trustee must approve.

Yes, that is correct. You need to find a lender who will approve you. The lender contacts your attorney and sends them all the paperwork about the loan terms, etc.

Your lawyer sends this off to the Trustee who will either approve or disapprove the refi. You will get a letter if they approve with all the terms, wire instructions, etc