What determines length of 100% plan

[cagey]

If you earn enough to pay back 100% of unsecureds in 3 years, are you allowed to create the plan so that it goes 4 years thereby allowing for extra breathing room? Thanks for all the great info!

[justbroke]

This is a District specific question. Most Districts read the code which literally States that you must surrender, to the custody and control of the Trustee, all disposable income. So if your disposable income pays 100% in 2 years, you should commit it all over 2 years and be done in two year. Those Districts, and Trustees, believe that you shouldn't be able to spread it over 3, 4 or even 5 years. (Alas, because there is a direct correlation between plan longevity and risk of plan failure. Yep, the longer someone is in plan, the more likely they are to default in plan.)

However, other Courts (Districts) read that so long as you propose to pay 100% over some period (less than 5 years), then you can pay less that your disposable monthly income. I think Ohio was the most recent ruling which sided that a 100% plan doesn't require 100% of your disposable monthly income committed each month.