Has anyone left Chapter 13th with success?

[WellOk12]

Ok, so I am in Chapter 13th BK. It's been fine, I make a good bit but I'm just really impatient lol. I have 2 years left. I pay $4100 a month (Mortgage and cars included). I visit this forum a ton, and was just wondering. With 2 years left, if I were to dismiss what are the chances creditors would come after me? I know that is a tough question, but figured I'd ask any others who may be in the same thing. Thanks all!

[shipo]

Ok, so I am in Chapter 13th BK. It's been fine, I make a good bit but I'm just really impatient lol. I have 2 years left. I pay $4100 a month (Mortgage and cars included). I visit this forum a ton, and was just wondering. With 2 years left, if I were to dismiss what are the chances creditors would come after me? I know that is a tough question, but figured I'd ask any others who may be in the same thing. Thanks all!

As I understand it, the junk debt buyers count on a certain number of Chapter 13 debtors having their cases dismissed, and as soon as the dismissal comes through, they pounce.

As if that isn't bad enough, they recalculate what you owe by adding in a pile of interest; by far your best bet is to serve out your remaining two years and get your discharge.

[justbroke]

With 2 years left, if I were to dismiss what are the chances creditors would come after me? I know that is a tough question, but figured I'd ask any others who may be in the same thing. Thanks all!

As shipo mentions, beware of the junk debt buyers (JDBs). In fact, the JDBs have bet on the fact that a good number of Chapter 13s are not successful. They are ready to immediately pounce and file suit as soon as your case is dismissed. You will owe so much more because of the accrued, yet unbilled, interest plus any other contractual costs they can include (attorney fees, cost to collect, etc).

This is the exact scenario which JDBs expect to happen and their entire profit motive is based on dismissals. The JDBs will also report you to the credit bureaus (further weakening any recovery).

The bottom line is that you may have spent the last 3 years of a 5 year plan paying, but it will be for naught if you allow a dismissal (voluntary or otherwise). The interest accumulated at the contract rate which, if it's 15%, 20%, maybe even 25%, would mean you only paid the interest of that 3 years. You'd literally be back to square one, but with the hostility of a hungry JDB salivating at the prospect to obtain a judgment.

[flashoflight]

If Amex is one of your creditors, the law firms hired by Amex are waiting for you to fail the 13 and will sue you if you fail. They are very aggressive when trying to collect too. Amex is the creditor I'm most scared of if I failed the 13. After that the JDBs.

No way I would even spend a second thinking about dismissing my 13. It would be really, really bad.

[hcorreia1]

Curious, as to why you would want to have a dismissal? Anyways whatever you are dealing with, the trustee will work with you, at least that was my experience. I fell behind on payments and they allowed me to catch up.

[BxRcvor]

If Amex is one of your creditors, the law firms hired by Amex are waiting for you to fail the 13 and will sue you if you fail. They are very aggressive when trying to collect too. Amex is the creditor I'm most scared of if I failed the 13. After that the JDBs.

No way I would even spend a second thinking about dismissing my 13. It would be really, really bad.

Agreed. Amex was the reason why I filed for BK in the first place, as they had already filed suit against me to collect the amount. I had tried one of those "debt relief" programs but that didn't work out. Only I filed Ch7, not 13. Within 3 months of filing and the 341, I was "discharged." I complied with what my lawyer arranged with the trustee. Shortly after the discharge, the case was officially closed. And that was over 3 years ago.

[Carmella]

Yes and Yes

Yes, we had success with Chapter 13 and also had a very high payment.

Yes, they will come after you.

You say you are impatient is that why you are thinking of dismissal or is there something else going on?

In our case not all the creditors put in a claim and our Chapter 13 ended almost a year early! If you didn't keep track/didn't understand how it works maybe you are closer to discharge than you think.

I don't see a reason to end it early since creditors will come back with a vengeance and you are more than halfway finished. Unless there is some circumstance you didn't mention that should be discussed with your attorney.

[WellOk12]

Thanks to everyone for the responses here! I had no idea about junk debt buyers. Huge help!

[WellOk12]

Yes and Yes

Yes, we had success with Chapter 13 and also had a very high payment.

Yes, they will come after you.

You say you are impatient is that why you are thinking of dismissal or is there something else going on?

In our case not all the creditors put in a claim and our Chapter 13 ended almost a year early! If you didn't keep track/didn't understand how it works maybe you are closer to discharge than you think.

I don't see a reason to end it early since creditors will come back with a vengeance and you are more than halfway finished. Unless there is some circumstance you didn't mention that should be discussed with your attorney.

Thanks for the response. I am extremely organized so I know exactly every creditor. Some also did not file claims, but I am in a 10% plan, so from what I read it will go all 60 months. Which at this point I am just resolved to get through.

[WellOk12]

Curious, as to why you would want to have a dismissal? Anyways whatever you are dealing with, the trustee will work with you, at least that was my experience. I fell behind on payments and they allowed me to catch up.

I'm just not patient - probably why I got to bankruptcy haha. Honestly things were fine, and still mostly are. Maybe just feeling the effects of inflation, idk.

[chargers777]

Hang in there man.

My buddy completed his Chapter 13 years ago, and it saved him about $500,000.

Its worth the wait.

[WellOk12]

Hang in there man.

My buddy completed his Chapter 13 years ago, and it saved him about $500,000.

Its worth the wait.

I appreciate it, thanks for the encouragement!

[underh20]

+1 for all the comments in this thread. 2 years is short, you will be there before you knew it. And yes, I survived chapter 13 too.

[Carmella]

I got the report for all the creditors that were paid and how much through the BK 13. I wish I kept better track so I would know which collection agencies worked for which creditors. We had an embarrassing amount of credit cards. I really would like to know who didn't even file a claim.