Any advantages to 100% payback?

[Mark80]

After screwing with the means calculator, going over my filing paperwork and so on I seem to have a good shot at getting stuck with 100% chapter 13 payback. That I suppose is bad news, but I was wondering if there was anything positive about being at 100% payback to make me feel better? I came up with these ideas but I don't know if they are true or not, but they sounded good.

(these are my hopes)

You have no ghost payments, such as your tax refund. When you hand over your tax refund it just doesnt go up in smoke and get tossed around to your creditors, it actually goes against the total amount you owe as you cannot owe them anymore then 100%.

Wage increases wont effect your chapter 13 payments, as your already paying back 100% of what you owe.

You can save money without fear of the trustee taking it and again just handing it out to your creditors without it making a dent in your balance.

Possibility of early completion if high amounts of refunds and bonuses gets taken to apply against your total balance.


Now maybe this is all fantasy, but at least until someone shoots me down I can feel better for 10 minutes.

My main idea is you wont ever pay your creditors over what you owe them, so unlike a partial payback all the cash that leaves should be going towards something. Thats the main positive I am hoping I'm right on, as I would hate to send thousands over to them and it not do anything.

But of course maybe I am wrong, if so please correct me, if there are any other perks to 100% payback PLEASE LET ME KNOW!

[AngelinaCatHub]

I'm not a 13 case so I am speculating here. But as I understand it, the trustee determines who gets paid, and at what rate of interest, if any.

You don't have to put up with the hassling phone calls or dunning letters. And the creditors can't all of a sudden jump your payments and interest rates into the stratosphere. Something like refinancing an ARM into a fixed rate. But thats what I think. 'Hub

[Mark80]

I didn't know they could use interest! Crap! I always thought 100% payback was 100% of the total owed minus interest...

[AngelinaCatHub]

I didn't know they could use interest! Crap! I always thought 100% payback was 100% of the total owed minus interest...

No, you misunderstood what I meant. I meant with the 13 plan, your payments to the trustee are set, as opposed to you trying to bail yourself out on your own. The trustee determines who gets paid what. You just pay the trustee a set amount each month. 'Hub

[DebtSlave]

You made good points, Mark80. I don't expect to get a gold star for being 100%.
And the BK info that is on our reports doesn't mention what percentage has been paid on account.
I just accepted it as a fair accounting by the Trustee. I must warn you that the Trustee's fee is abrbitrarily set. Mine rose from 7% to 10% toward the end of my plan when I began sending in 100.00 extra per month. Good luck to you.

[Mark80]

I made some good points, but it seems they all may be false! LOL!

My trustee is 4%, so I guess we get a good deal here. Im dedicated to getting through this and learning from it, so I am staying positive.

You guys can call me Mark btw!

[AngelinaCat]

Hi Mark: Yes, I think you have a pretty good deal there. Good luck.

[Monty2000]

When you pay back 100%, you can tell people that when it's over. Such as the FBI when they come to interview you for a Security Clearance. The Government hates bad debt. But if you showed you paid it back, they forgive you. Showing you paid back 100% when a lot of people paid 50%, makes you look all that much better.
If you havent guessed, I paid 100%, so telling you about this makes ME feel better

I get envious when I hear how other people paid much less, but in reality, 80-90% of my debt was Secured, so there really was not a lot of choice.

[woeisme]

You can even put statements into your credit file, and you could put such a statement into your credit reports that you paid 100% payback in your wage-earner plan. Whether that would help you or not, who knows, but it couldn't hurt, right?

[HHM]

A chapter 13 is really a debt management plan. The main benefit is that it puts YOU in control of the situation. By filing Chapter 13, the creditors are subject to your whim, and not the other-way-round. Granted, you shouldn't "aim" for a 100% payoff, but if your disposible income is such that you would be in one, that does not mean you should not file.

The typical profile for 100 percentors is that they have issues with secured debt (i.e. foreclosure, etc)

[fltoo]

This parallels a question I have. I get no cc statements anymore. If the company is tacking on interest and jacking up what is owed, shouldn't they have to inform you via cc statement of the interest or late payment fees charged every month?

I just don't understand this.

Maybe I should have posed this as a new thread. If it warrants moving, UHaul it.

[Mark80]

Are you in a Chapter 13 plan? If so from what I know the CC companies agree or go by what is decided by the bankruptcy courts and are stuck then until your plan is over. They can't raise or do anything once your in the plan. And in many cases you don't pay any interest, expecially if your not in 100% payback. And even then from what I have learned its usually minimal unless you have so much disposable income left over you can afford to.

[HHM]

This parallels a question I have. I get no cc statements anymore. If the company is tacking on interest and jacking up what is owed, shouldn't they have to inform you via cc statement of the interest or late payment fees charged every month?

I just don't understand this.

Maybe I should have posed this as a new thread. If it warrants moving, UHaul it.

If you are in a 13, that is not happening, so don't worry about it.

[BnkrptcyLwyr]

Benefits to chapter 13 (whether or not you're paying 100%) ...

No interest to unsecured creditors (most of the time) ... meaning no outrageous interest rates on those creditors.

Not all unsecured creditors will file claims (meaning you could pay less than all of your unsecured creditors).

Two really big advantages in Chapter 13.