CH 13 less than 100 percent payoff discharge

[dieselman]

I paid off my BK13 early at less than 100 percent in June. Even received a refund from the Trustee after the final audit.

A 13 can be completed without issues or constant drama.....

[justbroke]

Was your applicable commitment period only 36-months, and had you been in the plan close to (or past) 36-months?

Yes, a Chapter 13 can be paid off early, but 99.99% of people could never payoff a Chapter 13 early without a.) liquidating a retirement account, b.) achieving some sort of windfall, or c.) selling/refinancing their home. (There could be other things at play including a very low "base" plan amount.)

Those who were under-the-median income have a much better chance of getting out of a Chapter 13 early. If a debtor is under-the-median then their applicable commitment period (ACP) is only 36 months. The under-the-median debtor can get out of their plan early typically by paying just the plan base (which is based on 36 months).

Those with an ACP ot 60 months are those that are over-the-median. They must stay in the plan for 5 years (60-months) or pay 100% of the allowed unsecured claims. I must say that some over-the-median filers get lucky and major creditors don't file a claim, making their plan base much smaller than expected. I know that Citi or Chase (or both) didn't file on over $80K of my debt in my Chapter 13, which was nice. Not that I could afford the price tag on my 60-month plan anyhow since I had unsecured debt nearing the unsecured debt limits (north of $300K).

[shipo]

dieselman, keep in mind, the vast majority of folks in a less than 100% 5-year plan will not be allowed to complete the plan early and for less than 100%. What were your special circumstances which convinced your Trustee to allow you to exit early?

[dieselman]

Those who were under-the-median income have a much better change of getting out of a Chapter 13 early. If a debtor is under-the-median then their applicable commitment period (ACP) is only 36 months. The under-the-median debtor can get out of their plan early typically by paying just the plan base (which is based on 36 months).

I'm a unicorn...... They are real....

[justbroke]

I'm a unicorn...... They are real....

I wouldn't say a unicorn. I know, personally, that some have exited a Chapter 13 early through a payoff. It's not an easy tract, especially for an over-the-median debtor. Some very lucky under-the-median Chapter 13 debtors even have major unsecured creditors not file a claim, making it easier. It's rare, but it does happen in the right circumstances.

[dieselman]

I wouldn't say a unicorn. I know, personally, that some have exited a Chapter 13 early through a payoff. It's not an easy tract, especially for an over-the-median debtor. Some very lucky under-the-median Chapter 13 debtors even have major unsecured creditors not file a claim, making it easier. It's rare, but it does happen in the right circumstances.

Gotta know how to play within the rules and laws to ones advantage....

[shipo]

Gotta know how to play within the rules and laws to ones advantage....

Do you have any insights to share with the rest of us?

[dieselman]

Do you have any insights to share with the rest of us?

I am not an attorney nor do I play one on the internet... It would be improper for me to provide any insights on my now discharged drama free case. One observation is that some folks tend to create their own drama within a BK13 that does not need to happen by not following their attorneys instructions and advice.

[shipo]

LOL, pictures (or a reasonable explanation), or it didn't happen.