Leaving ch13 early?

[Huckleberry]

I was wondering if anyone had left ch 13 early on their own? My situation is I basically got into a ch13 to save my truck. I owed bout 16k on it and didnt want it repoed. I went ahead and added my student loans and a couple credit cards to my ch 13 to make the total 30k. I am bout a year and half into the ch13, and should have the truck paid off at around the 3 year mark of my 5 year ch13. I make a lot more money now, and am anxious to get out as soon as possible to start repairing my credit. I'm thinking about getting the ch 13 dismissed once I get my truck totally paid for and just taking care of the student loans and couple credit cards normally after that. Is this smart thinking, or even possible? Any help would be appreciated!

[Flamingo]

The worst thing you can do is allow your Chapter 13 to be dismissed. If you allow it to dismiss, you are right back at square one where you filed just minus anything you paid into the Plan which already has been paid to your creditors. All back interest and penalties will be added in and you will have a Chapter 13 showing on your credit reports still for 7 years after the filing date and a dismissed one at that. Secondly, to buy out of your plan, if it is possible, would require you to pay 100% of your Plan, not the percentage at which you were confirmed. Before you do anything further, consult with your Chapter 13 attorney.

[Huckleberry]

Thanks for replying. I'm guessing that if I were to leave the ch 13 early voluntarily without paying off the rest of my stuff...it would be classified as a dismissal and not discharge? I'm assuming also, that a dismissal would look much worse than a discharge on my credit? I'm really wanting to get out of this and get on with my life, but if thats the case, then I'lll just have to tough it out and finish off the 5 years.

[lrprn]

I'm guessing that if I were to leave the ch 13 early voluntarily without paying off the rest of my stuff...it would be classified as a dismissal and not discharge?

No guesses - here's the facts. If you voluntarily stop making your Ch 13 payments, the trustee WILL dismiss your case and it WILL show up on your credit record as dismissed, not discharged.

I'm assuming also, that a dismissal would look much worse than a discharge on my credit?

Dismissed is FAR worse than discharged. You won't have much of a credit score to worry about for ten years because a dismissal doesn't drop off your credit record for ten long years after filing. However, a successful Ch 13 discharge drops off your credit record seven years after your filing date. Creditors may not be happy to see a bankruptcy on your credit record, but they will be much happier to see a successfully discharged Ch 13 rather than a dismissed one.

I'm really wanting to get out of this and get on with my life, but if thats the case, then I'lll just have to tough it out and finish off the 5 years.

Smart thinking.

[EricaCallaha]

It is so much better to see discharged than dismissed. Discharged means that you followed through with the plan. Dismissed means that you couldn't make the payments or didn't want to. See the distinction. Much better to stick it out.