Moratorium on payments - 36mo clock still ticks?

[c2c2c2]

My lawyer is getting ready to file for a moratorium on payments. I am anticipating this will be for 3 mo. Will that time still count as being 'in the plan' and tick off 3 months out of the 36? I am in the new law. Thank you in advance. Chris

[pontiac467]

I did this last year and it was for 3 months. but it was just the bankruptcy payments. All the payments i was making outside the plan like my house payments had to be made on time as usual. The trustee just added the 3 months to the end of the plan. So my discharge date was 3 months later than it was suppose to be.

[c2c2c2]

Shoot, I was afraid of that. Is this the norm or is this a spin the wheel scenario depending on what district you are in?

[c2c2c2]

Can you resume payments prior to the moratorium end date and get credit for the time?

[falken]

You owe 36 payments that you actually need to make. Those payments are not just forgiven on a suspension. Well, okay... the trustee does have the power to forgive those payments, but in practice, no. It would then adversly affect the creditors and they would all need notified, etc.

You will either have to increase your remaining payments to make up the difference or extend your plan by 3 plans which I believe you can do since you are in a 36 month plan.

[justbroke]

MWill that time still count as being 'in the plan' and tick off 3 months out of the 36?

Payment suspensions "toll" the clock, so the clock stops. When you return to paying, the clock restarts where it left off.

In a 36 month plan, this just increases the overall plan payment period by the 3 months (in your case) or increase your payments to "catch" up the plan. Also, so long as the plan doesn't increase to more than 60 months, you're okay.

The real issue is for those already in a 60 month plan. The plan can not be longer than 60 months so that the tolling of the clock doesn't change the length of the plan. Those in a 60 month plan are worse off because their payment may actually increase after the 3 month suspension of payments.

[c2c2c2]

OK, Thank you for the responses. Chris