D.O.T. Buying House! HELP!!!!

[Scott13]

[Minnymouth]

How this will affect your bankruptcy I don't know what to tell you.....
Check with your attorney and see if he can get some answers for you....

If your bankruptcy is discharged I would think it would be of little worry, but if your still in Chapter 13 how the Trustee can treat this "windfall" is questionable.

These are very unusual circumstances that you really need to find answers for a quickly as possible to see how it is going to affect you.

Maybe HHM has some input he can help with on this situation....

Keep us posted on what you find out.....

[krielly]

It will be interesting to see what your attorney says about all of this. Please be sure to come back and share with us.

Not sure I would recommend pursuing an early payoff when you are only in a 36 mos plan. Generally you are paying all of your disposable income for a minimum of 3 years. Being able to pay this off early would imply you have more disposable income than what you are paying, and could raise a reg flag and amount to you paying more into the plan (higher percentage). I also have heard that requesting an early payoff of a Chapt 13 is not something that gets approved quickly. Chances are, by the time it gets approved, you could be close to the end of your plan anyhow.

Sounds like your plan will be completed in 4 more months anyhow. Why not just wait this out? you said an appraiser won't be by for another 4-5 mos, then then it will be up to 3 mos after that for negotiations to begin. With only 4 payments left in your plan, you should be discharged by then!

Let us know how you make out with the attorney.

K

[SANRA308]

under old law aren't you allowed to buy out early

[Minnymouth]

A early buyout only tells the Trustee that you have money HE DOESN'T KNOW ABOUT............ duh....... why press your luck........... Your about thru with him, don't stir him up looking for funds to take.........

[krielly]

under old law aren't you allowed to buy out early

Yes, but only after 3 years (unless you are at 100% payback).
The OP only has a 3 year plan.

[Scott13]

Thanks for the replies.

It seems we'll be completeing the base plan within the next 4-months but still have monies to pay to the unsecured creditors. Our payments for the last 2-years have gone to the lawyer, trustee, a car loan, and one creditor that claimed secured. Based on my calcs (which could be wrong) we may have another 13-months to pay (approx $8K).

Not until this month has our payment finally started paying off the 16% to the unsecured (I think). This is also why I'm going to talk to our lawyer today - to clarify our plan again, our current status, and what's left.

If we ask for the early pay-off, we'll either borrow out of our 401K (it was included in the plan) or borrow it from a family member or friend. How do they usually look at that?

We're hoping that they will consider our very unfortunate upcoming circumstances that we have no control over.

At least we should be receiving the title for our truck sometime next month. It should now be paid off.

[soclose]

I'm with Krielly and Minnymouth it will be tough at 16% payback to unsecured. Only if you were paying 100% back could you request early payoff AFTER 36 months. The amount you're paying to unsecured is what would be the issue. I would wait it out being that your close to the end. You dont want to cause them to add more months to your plan.

[SANRA308]

I agree too since your almost done with your 3 years you will probably be discharged, and you might be able to stall a little , D.O.T bought out my friends house it took forever to finalize everything. Hope everything works out expecially since your being forced to sell ,it would be really unfair to try to take any of your equity.

[Scott13]

Well, the attorney meeting went ok (I guess).

Recommended that we finish out our 36-month payments (May 2008) and after that motion for an early pay-off for the remaining balance of around $8K to the unsecured because of our circumstances. He just said we would need to provide a letter stating where the money came from.

He said come back and see him as soon as the DOT comes back with an official offer.

Guess I can sit back and relax for a few months.

Now to find that coffee can I buried in the back yard...

[Scott13]

Update:

We're finally past our "base plan" and still paying.

Haven't heard from the D.O.T. since an interview back in February, but the houses & property are being bought up and removed nearby in preparation of the project. Major construction has begun on another phase of the highway on the other side of the county.

We've been house shopping because what will eventually happen is inevitable and now we've found a house we really want (a foreclosure).

We're trying to get an updated timeline from the D.O.T.

Oh, and we're pregnant - so we now need that fourth bedroom.

[holding on]

Recommended that we finish out our 36-month payments (May 2008) and after that motion for an early pay-off for the remaining balance of around $8K to the unsecured because of our circumstances. He just said we would need to provide a letter stating where the money came from.

I think I'm really missing something here. I don't understand If you have a 36month bk plan, and you finish it, the part about a motion for early pay off? Aren't you ALREADY paid off when you will finish your 36 months? Once your plan is completed its done. The debts are discharged.

[Scott13]

We've completed the "base plan" which was for 36-months, the overall plan pays 16% to our creditors, which would take another 12-months (or more).

I think (under old law) after the "base plan" we could pay off the remaining balance.

[holding on]

I see what you mean now. I always thought of the plan as the plan, while you're writing of the base plan as the 36 month point.

[Scott13]

Thought I would give everyone an update on our status.

Given the state of the economy, the GA D.O.T. has basically no funds for a lot of projects. For this particular part of the bypass project, we have received letters that activity has been suspended. The D.O.T. is working of other parts of the same bypass in another part of the county.

So I guess we're safe for a while in regards to our house.

A good note: our chpater 13 should be nearing an end with one more payment left.