Early payoff, can someone explain?

[sassiebaz]

I have looked up this option (or non-option) and I only see it in regard to those that own their home and are refi-ing. Is this ever an option for me who only owes to the Trustee and Lawyer? I have 0% to creditors. I haven't heard that our tax refunds will be taken, so I thought what if we could pay our whole $2700 at once, from say, a tax refund? Do I sound like I'm making this up as I go along? LOL I know when this issue has been mentioned before, the response has been to the effect of....if you can do an early payoff, the Trustee will question your income and why you want to pay it off early.....and how someone would have the means to payoff early. I get that, but I still wanted to ask.

[justbroke]

Is this ever an option for me who only owes to the Trustee and Lawyer? I have 0% to creditors.

Yes. If you are only paying your lawyer in plan, then once you pay them off, have your lawyer call the Trustee and ask for a payoff amount. Since the Trustee will come back with $0.00, then ask for a discharge!

Absolutely, positively do not pay off the amount of make large payments towards your plan until you have worked this out with your attorney! People have done so and ended up still in their Plan for the required period of time. Yes, they blew that large payment!

A plan to payoff early is just that... a Plan. It requires coordination, agreement by the Trustee, and perhaps even a Motion to Modify Confirmed Plan in order to get the commitment period reduced!

[sassiebaz]

Absolutely, I would NEVER do anything without having my lawyer check it out first. I hear it's best to complete atleast 12 months of payments...is this true? Also, if I don't have to turn over tax refunds, that would be the only way we could even consider this. Why wouldn't our attorney mention this as an option? The early payoff I mean.

[justbroke]

Absolutely, I would NEVER do anything without having my lawyer check it out first. I hear it's best to complete atleast 12 months of payments...is this true? Also, if I don't have to turn over tax refunds, that would be the only way we could even consider this. Why wouldn't our attorney mention this as an option? The early payoff I mean.

Because they probably don't make money for monitoring yoru case for 3 years, if you pay it off in 1. Just kidding...

Are you sure that you have absolutely no unsecured creditors that filed claims? Or, are you in a 0% plan, but you do have unsecured creditors? If it's the latter, then you probably can't "buy out" without the 100% buyout of the allowed unsecured claims. If it's the former, then you probably could get out of the Plan.

Why your attorney didn't mention it... I'll never know.

[sassiebaz]

Yes, we did have unsecured creditors, but according to "13datacenter" there is only one claim and that is our law firm. How would I find out if there have been claims filed?

[sassiebaz]

Oh, as far as I know we aren't "confirmed" yet. I'm getting ready to make our 5th payment.

[justbroke]

Oh, as far as I know we aren't "confirmed" yet. I'm getting ready to make our 5th payment.

Well, there may be otehr claims. PACER is the only way to know for sure.

[HHM]

If there are any claims filed in your case beyond that of your attorney, a payoff will need to include FULL payment of those claims (not just the amount you designated to pay them).

[sassiebaz]

If there are any claims filed in your case beyond that of your attorney, a payoff will need to include FULL payment of those claims (not just the amount you designated to pay them).

Makes sense! So, I should wait a while and see what happens on Pacer?

[sassiebaz]

Well, there may be otehr claims. PACER is the only way to know for sure.

Ok.....

[justbroke]

Ok.....

This is what HHM talked about. You could have other claims that have come in or are yet to come in (if your claims bar date hasn't expired yet). If you're not yet confirmed, you probably haven't reached the claims bar date yet. My claims bar date was about 4 months after filing. My confirmation date was about 5 months after filing.

[ccfriend]

Many of my creditors didn't file claims until right before the claims bar date. All of fine did file...even AmEx for $26
That would be awesome though if you ended up with no claims!

[sassiebaz]

Many of my creditors didn't file claims until right before the claims bar date. All of fine did file...even AmEx for $26
That would be awesome though if you ended up with no claims!

May be a pipe dream....