Paying Off a Ch13 early

[krielly]

Well, obviously we have to go the FHA route. Looking at 4.5% for 15 year fixed FHA loan.

[nicktesla]

Great, that is a fantastic rate so soon out of BR.
Hope all goes well.

[krielly]

Let's hope so..... I think everything will go exactly as it is supposed to.......If it's meant to be, it will happen. Trying to convince myself of that anyhow......LOL!

[BKchapter13]

I can understand wanting to be rid of the chp13, its not a pleasant thing at all. I am saving however I can to do the same thing, that is a legitment goal to stay focused on, I believe during the time I have been reading up on it you need to be in chapter 13 100% payback plan for three years and then you can pay the remainder back but your attorney has to get approval and the trustee needs to do an audit and organized and payoff amount with her permission it can be done, but I am pretty scared to do that only because what if the trustee questions the amount of money you saved, then that trustee could dismiss your case and all the interest from your debt is incurred again, so its a good question and i do not see anyone here stating they paid off thier debts early so that is a red flag for me. I dont want to compromise my bankruptcy that close to the finish line. good luck tho let me know if it works if you do consider it.

[krielly]

Please note that I did say I filed "OLD LAW", which did allow an early payoff after 3 years at the plan amount (vs. 100% payback).

The new law is much different, but does not affect me....

[BKchapter13]

Same here, i like how you put it, very lean, yes we have and yes we are and will continue to run very lean until our debts are paid in full. I read alot about paying off early and so far I havent found one person here or anywhere said they paid the chapter 13 off early. from what I do know and what I did read you first have to discuss a payoff with your attorney, they in turn will as the trustees permission and if she does then she has to do an audit and which will clear you of any lurking debt out there then she comes up with a lum sum payoff for you to pay. Again, I have read alot about this because I have been saving and saving to do the same thing but can it be done without prejudice from the trustee, I dont know. I rather play it safe and finish this the way the trustee planned it. Unless I see somebody else with success doing this then I am safe do just continue it the way it is. Good luck and let us know, I am very curious to know more.