Always 5 years?

[Andyman]

In a Chapter 13, is the payoff timeline always 5 years or can that timeline be negotiated?

Thanks!

[justbroke]

In a Chapter 13, is the payoff timeline always 5 years or can that timeline be negotiated?

Thanks!

A Chapter 13 timeline is a function of law. It has to be a minimum of 3 years or 5 years (maximum) depending on whether you're below the Median Income level for your State and your household size

Having wrote that, a Chapter 13 Plan can be less than 3 or 5 years, if you pay back all your unsecured creditors, who file an allowed claim, 100%.

[Andyman]

A Chapter 13 timeline is a function of law. It has to be a minimum of 3 years or 5 years (maximum) depending on whether you're below the Median Income level for your State and your household size

Having wrote that, a Chapter 13 Plan can be less than 3 or 5 years, if you pay back all your unsecured creditors, who file an allowed claim, 100%.

so if I have 2-3 CC's that don't file a claim and I also have a car loan that I want to keep then does the car loan go into the payment plan or would I be better off to try a chapter 7?

[justbroke]

so if I have 2-3 CC's that don't file a claim and I also have a car loan that I want to keep then does the car loan go into the payment plan or would I be better off to try a chapter 7?

First, let's talk about Chapter 7. If you qualify for that, and have enough exemptions to protect all (or a substantial) amount of your property (and equity), then I feel it's better, because it's over quicker.

If you're trying to save a homestead or other real property, Chapter 13 may be your only option.

I think that claim filing is a function of what the creditor thinks they'll get from your Chapter 13 Reoganization Plan. Example, if you're paying 0-10% to unsecured creditors, it may not be worth the expense of even filing on a $300 claim since theuy'll only get $0 to $30 dollars (and the cost of filing and administering a claim is more).

However, if you're in a 50%+ plan, then it's worth it for them to file a claim. So, whether or not any particular creditor will file a claim, is totally a function of what they think they can get.

So far, all of my "secured" creditors (not my house nor my cars, but all the other ones) have filed "unsecured" claims because they would get 80%+ from my Plan. Only I just amended my Plan and they'll get 1-2% now. Many of them will probably just withdraw their claims. It's not worth it. I actually hope they do withdraw.