Almost over?

[muzzey58]

My husband and I in November 2006. Our confirmation was April 2, 2007. However, we started paying into the plan way before our confirmation was ordered. I have been keeping a close on our case through the National Data Center for chapter 13 filers. I have noticed that our claims with the IRS and other priority claims are all paid off. Originally our case was set at 80% and close to $1600 a month in repayment costs. However, I had to quit work because of a serious shoulder injury. I was a nurse aide and suffered a rotator cuff injury and wasn't able to due the job anymore. We hired a new lawyer because of no representation by the first lawyer. Our new lawyer filed for a modification on our case 2 years ago. We were approved for the modification. It was lowered to 55% and $1100 a month. So we probably paid most of the priority claims down pretty fast. This year we owed a few hundred dollars on our Federal taxes. The taxes are almost paid off. There are a few unsecured claims that are getting paid off here and there. How will we be able to tell when the case is about to be discharged? My attorney said that originally it was due to be discharged around April or May 2011. Now with the lower repayment percentage, couldn't our case be sooner than originally anticipated? Once the priority claims are finished how soon might it be? We've been in this for nearly 4 years and paid over $55,000 to the court. We could have put a nice down payment on a home with that money. However, I'm glad to start fresh again. I'm hoping that the lawmakers will abolish this stupid rules that make people who make middle class wages file for a chapter 13. We don't own any real estate property. We don't have anything of value except our one car. We should have been allowed to file a chapter 7. Maybe, someday this stupid law will be gone. Thanks for any help.

[newbie2]

My husband and I in November 2006. Our confirmation was April 2, 2007. However, we started paying into the plan way before our confirmation was ordered. I have been keeping a close on our case through the National Data Center for chapter 13 filers. I have noticed that our claims with the IRS and other priority claims are all paid off. Originally our case was set at 80% and close to $1600 a month in repayment costs. However, I had to quit work because of a serious shoulder injury. I was a nurse aide and suffered a rotator cuff injury and wasn't able to due the job anymore. We hired a new lawyer because of no representation by the first lawyer. Our new lawyer filed for a modification on our case 2 years ago. We were approved for the modification. It was lowered to 55% and $1100 a month. So we probably paid most of the priority claims down pretty fast. This year we owed a few hundred dollars on our Federal taxes. The taxes are almost paid off. There are a few unsecured claims that are getting paid off here and there. How will we be able to tell when the case is about to be discharged? My attorney said that originally it was due to be discharged around April or May 2011. Now with the lower repayment percentage, couldn't our case be sooner than originally anticipated? Once the priority claims are finished how soon might it be? We've been in this for nearly 4 years and paid over $55,000 to the court. We could have put a nice down payment on a home with that money. However, I'm glad to start fresh again. I'm hoping that the lawmakers will abolish this stupid rules that make people who make middle class wages file for a chapter 13. We don't own any real estate property. We don't have anything of value except our one car. We should have been allowed to file a chapter 7. Maybe, someday this stupid law will be gone. Thanks for any help.

With the new bankruptcy laws you can't exit a Chapter 13 unless your unsecured creditors have been paid 100%. (Or unless you're in North Carolina. Don't know how but they can get out early :-) We're in the same boat, and will be paying more to our unsecured creditors than was originally planned.

You're almost to the end of a long hard road. Hang in there!

[elflaco]

With the new bankruptcy laws you can't exit a Chapter 13 unless your unsecured creditors have been paid 100%. (Or unless you're in North Carolina. Don't know how but they can get out early :-) We're in the same boat, and will be paying more to our unsecured creditors than was originally planned.

You're almost to the end of a long hard road. Hang in there!

Don't you mean until you've paid 100% of the % ordered to be paid (say 28.6%)?

Just want to clarify as the way your statement read made my stomach drop...

[newbie2]

Don't you mean until you've paid 100% of the % ordered to be paid (say 28.6%)?

Just want to clarify as the way your statement read made my stomach drop...

I did leave out an important word, I apologize. (I can't go in and edit it now.)

For clarification: If you want to exit your Chapter 13 before the end of the plan (pay it off early) you can only do so if you've paid the unsecured creditors 100%.

Otherwise, you just continue on in your plan til the end (either 36 or 60 months) and pay whatever percentage that was in your plan.

[elflaco]

I did leave out an important word, I apologize. (I can't go in and edit it now.)

For clarification: If you want to exit your Chapter 13 before the end of the plan (pay it off early) you can only do so if you've paid the unsecured creditors 100%.

Otherwise, you just continue on in your plan til the end (either 36 or 60 months) and pay whatever percentage that was in your plan.

OK, good. I was just looking at our plan payback percentage and saying "No way in hell we're paying that off in 5 years".

Thought maybe I had misunderstood something...

[newbie2]

OK, good. I was just looking at our plan payback percentage and saying "No way in hell we're paying that off in 5 years".

Thought maybe I had misunderstood something...

That was my fault :-) I have to proof read better early in the mornings!

[muzzey58]

By what I understood my attorney said, that your plan is based on the percentage of debt that you will repay to the unsecured creditors. In our case the original debt was $100,000 in "ancient" credit card debt. In Ohio it's 15 year statute of limitations. One of the worst in the US. It hasn't changed since the 1930's when the original law was enacted. In my home state of PA, it's 4 years for most debts. So credit card debt that my husband had back in 1991 was stilling lingering and complying interest. We don't own any real property. It was mostly ancient credit card debt. Based on the percentage paid back which in our case is 55% to the unsecured creditors. It's the secured debt which was around $22,000 (12,000 for auto loan). That has to be paid back 100%. Once the case, I believe, of the secured creditors is 100% paid off then what's left is paid into the unsecured part. When the plan finally is paid in full according to the confirmation hearing then the unsecured creditors will get a notice that the case has been discharged and final. So sometimes they don't get the whole 55% of the repayment. What the court cares about is the secured creditors. I could be wrong. But this is how my attorney told us how it would end. Now that all of my secured debt is paid except for about a thousand dollars this is why I believe that my case is going to end sooner than originally planned. We were originally suppose to exit bankruptcy around May 2011. That is the original confirmation plan of 80% and $1600 a month. We paid over half of the plan in the first 2 years. We weren't living after I quit my job. I couldn't work anymore at all. So we were living just on my husband's job. I was just looking at other links and it does mention that once all the priority debt is paid and a certain percentage of the unsecured debt is paid that the judge will begin the discharge procedure. I also found out that a debt that is included on the plan can not proceed with any further court action. So we're closer every month towards the end of this adventure. It's like a kid on a long trip. You're starting to see familiar sights that are closer to home and you know you're almost there. I guess I'm starting to see the horizon after this long voyage called chapter 13 bankruptcy. Thanks for all of your help!