FINALLY CONFIRMED!!! Question about extra payments..

[rpg1977]

I got the paper in the mail today..signed by the judge .."and so it is ordered".

So, what exactly does this mean..just keep paying and not ruffle any feathers? I already asked, and we do not have to turn in our tax returns every year..I double checked. I don't have to do anything other than pay, really. It says that we can keep 1600 of a refund if we get one.

My question is this..if my payments are 700 a month for 48 months and Im paying back 18% to unsecured..what happens if we do get more than 1600 back at taxes..does that extra money accelerate our payments and makes us get done faster? If my husband gets a bonus of $1000 and we send it in..does that cut our time down? I know we HAVE to have at least 36 months.

Thanks!

[BNKRPTinNC]

It would mean that the creditors would get a larger percentage paid back. My understanding is that it would not shorten your plan.

[klandsb]

I am no expert but just from reading other post if your refund is over $1600 the extra you would have to send to the trustee. I dont think your pmts would change it would just give the creditors a little extra.. no sure about the bonus ...

[UpsideDownMI]

You only have to send in extra tax refund money or any other additional income to the trustee if your plan or the confirmation order require you to do so.

If you send in extra money on your own, your plan length will only be shortened if you are paying your unsecured creditors 100%. Otherwise they will just receive a greater percentage and you still pay for the full length or your plan.