Chapter 13 1% plan........54 of 60 months completed!!!

[MadMotor]

Just trying to see if this Chapter 13 might end early. I logged into NDC and seen that my 2 vehicles have secured debt balances of $268 and $70 remaining after 3/1/22. All of my unsecured debts have been paid at the 1% rate ( ex. $700 credit card has $7 paid). My bi-weekly bankruptcy payment is $690. Will April be the end for us??? It's been a long road and i pray that this is it. Sorry about the duplicate post. Thanks

[shipo]

It is my understanding unless you're in a 100% plan, you need to pay for the full 60 months. Probably not what you were hoping to hear, but there it is.

[justbroke]

I agree with shipo . If this was a 60-month plan, and you were over-the-median income at the time of filing, then they will just keep collecting money through month 60. They only people that I know that get out early, are those that pay 100% or those that were under-the-median and otherwise qualified for a 36-month plan (but went longer to spread out arrears).

Welcome to BKForum!

[flashoflight]

Unless you pay the other 99% (eg. the remaining $9,900 on the $10,000 credit card and all other unsecured debts the same way), you're not getting out early. They do it this way because maybe you'll get an inheritance or lottery win before you finish the CH13 which can help increase the dividend to the unsecured creditors. You may have a payback percentage number but that is an estimate that can go up in favor of the creditors if there is more money available. Sorry.

[MadMotor]

Update: 57 of 60 months completed!!!! NDC still shows active with a balance on hand of over $4200. All secured debts (cars) were completed in April and no distributions have been made since 4-6-22. Been checking Pacer and no recent activity. Hoping to get the stop garnishment letter soon. Will i get vehicle titles soon or after this is fully discharged? I'm so anxious and happy this will end soon

[Vicmustaine]

Update: 57 of 60 months completed!!!! NDC still shows active with a balance on hand of over $4200. All secured debts (cars) were completed in April and no distributions have been made since 4-6-22. Been checking Pacer and no recent activity. Hoping to get the stop garnishment letter soon. Will i get vehicle titles soon or after this is fully discharged? I'm so anxious and happy this will end soon

The way i understand it is the following

If you're not in 100% Plan then your payments were based off the 1% repayment rate plan to unsecured debt. But that being the case.... your unsecured starting balances due to the creditors were only one percent of what you actually owed them, but all that money that is on hand on NDC will continued to be collected for the full 60 months and divided up at the end to the remaining actual full amount owed to the unsecured creditors not just the 1% originally put in place at the start of your case

[shipo]

The way i understand it is the following

If you're not in 100% Plan then your payments were based off the 1% repayment rate plan to unsecured debt.

I don't understand that statement at all; I wasn't in a 100% plan, but my plan was based on a heck of a lot more than 1% repayment of unsecured debt.

[MadMotor]

Just checked NDC.....as of 6/17/22 balance on hand now is $5386. Been a long road so just getting excited this will soon be over. $692 bi-weekly is alot and i'm going to do backflips when i finally see the stop wage garnishment order. Seen a post from my attorney on the company website about how most of his plans are 1% and at most 10% and they almost never go over that. 2 1/2 months to go!!!!!!!

[Vicmustaine]

I don't understand that statement at all; I wasn't in a 100% plan, but my plan was based on a heck of a lot more than 1% repayment of unsecured debt.

Just saying that all the money on hand at NDC will be going to the unsecured creditors … they are entitled to as much of their money back as possible for the 60 month duration … just because your plan payments were based on 1% they get as much they can … so don’t expect a big check back from the trustee cause it will be applied to all remaining actual money owed not the 1% your plan was set up to pay them

[MadMotor]

Gotcha. I didn't expect to get anything back at all anyway. I just didn't know if checking Pacer/NDC everyday is a waste of time since nothing really can happen now until last payment on Sept 6 or will they start distributing more money to the creditors now.

[flashoflight]

There is not much we 1% folks can do. Make sure you've already completed the 2nd BK course already and filed that with the court, save money for any potential shortfalls in the plan or mortgages, and make the final payment early but not too early. If the date date is the 5th, make the final payment arrive at the trustee on the 6th assuming your attorney is OK with that.

In the end, it's a backdoor chapter 7 and we get to keep our property while giving American Express a penny on the dollar. It's a pretty good deal for us.

[Carmella]

Gotcha. I didn't expect to get anything back at all anyway. I just didn't know if checking Pacer/NDC everyday is a waste of time since nothing really can happen now until last payment on Sept 6 or will they start distributing more money to the creditors now.

Do you have a mortgage? I forget the name of the document but within a few months of the end the trustee checks with your mortgage to make sure it is up to date. I am also in Ohio (Northern District) and my attorney said they only do that near the end. If you check PACER you might see the order regarding the mortgage. But don’t drive yourself crazy checking too often.

The order to stop your wage deduction, at least in my case, came as soon as the trustee had enough money (100% payback with a few creditors who didn’t file). I am “assuming” the wage deduction order will be filed fairly quickly once payment 60 is collected. Mine actually came the SAME day as my last payment was taken. And it was filed 2 days before the last payment.

My attorney forwarded it to me ASAP so I could email my HR/payroll. It took almost a week to get a hard copy. I am glad she emailed me because I got the order to them at the right time in the pay period!

I wasn’t checking PACER daily so it was a pleasant surprise. I got an email congratulating me from NDC. And within about 15 mins my attorney sent an email.

and Congrats for being so close to the finish line!

[MadMotor]

No mortgage. Also, second BK course is already completed and filed. Not big on rushing life, but come on September!!! Thanks everyone for all the info.

[MadMotor]

Update.......58 of 60 months completed!!!! $6660.25 on hand and still no distributions since April. Cant believe im so close to the end. No update on Pacer and NDC still shows active. Cant wait to have a full paycheck soon.

[Zombie13]

You are almost there! Hard part is waiting impatiently.