Possible plan acceleration, can someone help clarify

[cz3ch]

I'm in C13 and about 3 years in paying 100% at $250/month with DMO leftover when my last mod put me at 100%. I received a pay increase from 67K to 90K recently so I'm having my attorneys amend my schedules and submit to the court for processing. My attorneys said that more than likely since I'm 3 years in and am already paying 100% my trustee will probably just let me continue in plan without an acceleration. However they said because my pay increase was so significant and my DMO is now $2400 that the trustee could motion to take that money and accelerate my plan to payoff my bankruptcy balance ($5,300) early.

How does this work and has anyone else here dealt with an acceleration? I guess what I'm wondering is if they do accelerate and take all my DMO they'll just do that until my balance is paid off and I'll be discharged early right?

My lawyers said that if I really wanted to I could cut a check to the trustee for $5,300 and payoff early. But reading different things online I see conflicting rulings on the BK code. Was wondering if anyone had information regarding this.

Thanks in advance!

[dmc-2008]

Sorry I hope someone can answer you soon, idk!

[bbeagle]

My lawyers said that if I really wanted to I could cut a check to the trustee for $5,300 and payoff early. But reading different things online I see conflicting rulings on the BK code. Was wondering if anyone had information regarding this.

The most you can pay back is 100%. If the $5,300 pays off ALL your debts that you're removing bankruptcy, then you're done.

The issue is if you are paying back less than 100%. Say you are paying back 10% on $100,000 in debt. You should be paying $10,000 in total through the monthly payments. If you make a lump sum payment of $5,300 in THIS case, then you will have to pay back $15,300. They'll assume all the $5,300 is disposable income, and it will, in effect, be lost to you.

You're 100%. The bankruptcy is paying back creditors, there is no 'penalty' above that. Once you pay your creditors in full OR you end the 36/60 months, you're done.

[cz3ch]

The most you can pay back is 100%. If the $5,300 pays off ALL your debts that you're removing bankruptcy, then you're done.

The issue is if you are paying back less than 100%. Say you are paying back 10% on $100,000 in debt. You should be paying $10,000 in total through the monthly payments. If you make a lump sum payment of $5,300 in THIS case, then you will have to pay back $15,300. They'll assume all the $5,300 is disposable income, and it will, in effect, be lost to you.

You're 100%. The bankruptcy is paying back creditors, there is no 'penalty' above that. Once you pay your creditors in full OR you end the 36/60 months, you're done.

Hi thanks for chiming in and responding. Originally my debt was > 100K but the only ones who claimed by the deadline totaled about 16K. I'm paying 250$/mo at 100% for 5 years. I checked NDC and it indeeds shows my balance owed is ~$5300.00. The attorney said that because I've already been paying 100% that I could very well write the trustee a check and be out of BK early. But he said to wait to see what the trustee does over the next week now that my DMO is so high. He told me worst case the trustee will accelerate and take the $2400/mo until the balance is paid. (2-3 months) I guess whether I write a check or get my DMO taken I'll be out of BK and discharged early. He also told me that the trustee MAY look at my case, see that I'm 100% already and 3 years in and just let me finish my plan at 60 months.

Either way, it looks like things are good and I'll hopefully be out of this BK nightmare soon. It's been smooth for the most part but super stressful

[justbroke]

cz3ch if you are in a 100% plan, the Trustee really can't accelerate payments forcing you to pay the plan off earlier. There is a bunch of caselaw on this topic, albeit there may not be much in your specific District or Appellate Circuit. The law is pretty clear, but that doesn't stop the "eager" Trustee from trying to exert power.

[LadyInTheRed]

Do you have $5300 you could comfortable pay to the trustee? If so, I think I'd pay it and be done.