Shorter time frame OR less monthly payment?

[simon2020]

I'm in a 100% plan.

About 80% of my creditors have file proof of claims.

There are around 6 more hanging out there. Last day to file is within days now.

My confirmed plan is based on "if" everyone file a proof of claim.

What happens when some unsecured creditors do not file a claim in time?

1. Will my monthly payment be lowered?
2. Will I pay less than 60 months?

How is this determined? Will the trustee send me a letter stating the following creditors did not file so your new payment or (# of months) has now changed?

Thanks.

[justbroke]

Generally speaking, you commit all disposable monthly income so that amount wouldn't change. What you will end up with is a shorter period of time. Since your plan is already confirmed, you may not want to touch it (by lowering the payments) and I'm unsure if you're District allows you to lower the payments below the "disposable monthly income" amount anyhow.

I'm not sure if any notification is made at all that your plan would be shorter. I would say to make sure you keep up with it since you're in a 100% plan.

[sharina]

They won't lower the payments. Like JustBroke says keep up with it when you get close to payoff - that's what I am doing.

[simon2020]

I calculated a "what if" scenario and figured if $13,000 + $1,300 (trustee fee) do not factor into my 100% plan. I would be paying for only 43 months.

Does that mean way into the future around the 38th month, I should contact the trustee and ask if my plan will be paid earlier than 60 months? I hope I don't have to pay for 60 months and wait for a refund. (LOL!)

[justbroke]

Your plan is completed when you've paid 100% to the allowed unsecured claims or your applicable commitment period is reached, whichever comes first. (Noting that this statement does not take into account any arrears or taxes being cured through the plan.)

As a matter of fact, most Trustees will hold off paying the unsecured creditors, and use the "early" pooled money to payoff any secured debt (like cars), priority debt (like taxes), and/or arrears (from a mortgage). Then, once those are paid off, will usually pool the rest and make one lump sum to all the unsecured creditors. At least that is what some Trustees do. What your Trustee does may vary. However, the Trustee likes to get the secured creditors paid as quickly as possible.