My husband and I are currently 7 months into a 60 month plan (old laws). My FIL recently passed away, and I think I recall him having a life insurance trust of which my husband was a beneficiary. If this is the case, the proceeds would more than likely be significantly more than what we owe on our plan.
My question is, if we do receive these monies, can we simply request a payoff from the trustee and be done with everything? I know because we would be paying it off before that magic 36-month mark, we would go from paying 5% on unsecureds to 100%, but that's fine with me. I'd rather know we payed everybody what we owed them anyway. But will they allow us to pay everything off, or will the size of the estate change things? Can they dismiss our plan entirely? I don't mind paying everyone 100%, but I sure don't want to have to pay accrued late fees and interest too.
Thanks so much for any input!
My question is, if we do receive these monies, can we simply request a payoff from the trustee and be done with everything? I know because we would be paying it off before that magic 36-month mark, we would go from paying 5% on unsecureds to 100%, but that's fine with me. I'd rather know we payed everybody what we owed them anyway. But will they allow us to pay everything off, or will the size of the estate change things? Can they dismiss our plan entirely? I don't mind paying everyone 100%, but I sure don't want to have to pay accrued late fees and interest too.
Thanks so much for any input!
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