Actually more of a "what if" than hypothetical since there is a pretty good chance of this happening. 
I am a month (or so) away from confirmation. So far trustee has been fair, and we are looking at a reasonable payback with a livable plan. However I just found out that there is a likely chance that I will end up with a large ($150K) cash payment within the next 6 months.
Not counting student loans, my wife and I have about $240k in unsecured debt, including a stripped $150k 2nd mortgage and minimal priority debt (couple thousand). My wife and I are both professionally employed, gross income of about $210k per year.
While I understand that we would end up giving most (all) of the $150k to the trustee if we stayed in our plan, wouldn't we be able to able to dismiss the chapter 13 and then negotiate with the unsecured creditors outside of the CH13 protection? If I had the $150k right now, it would be an easy decision. I just don't know how it will all work once we are confirmed and in our CH13. Would this be possible? Advisable? Would it work? Seems like creditors would jump at the chance of getting paid around 50% payback (gotta save some $$ for taxes from potential settlement) versus the 20% or so they are getting in the plan.
I understand I give up the protection of the automatic stay and all the fees/interest/etc pile up from the date of filing, but it seems like either way I lose the $150k. One way I am still in CH13 for another 4 years or so, the other I am out.
I am a month (or so) away from confirmation. So far trustee has been fair, and we are looking at a reasonable payback with a livable plan. However I just found out that there is a likely chance that I will end up with a large ($150K) cash payment within the next 6 months.
Not counting student loans, my wife and I have about $240k in unsecured debt, including a stripped $150k 2nd mortgage and minimal priority debt (couple thousand). My wife and I are both professionally employed, gross income of about $210k per year.
While I understand that we would end up giving most (all) of the $150k to the trustee if we stayed in our plan, wouldn't we be able to able to dismiss the chapter 13 and then negotiate with the unsecured creditors outside of the CH13 protection? If I had the $150k right now, it would be an easy decision. I just don't know how it will all work once we are confirmed and in our CH13. Would this be possible? Advisable? Would it work? Seems like creditors would jump at the chance of getting paid around 50% payback (gotta save some $$ for taxes from potential settlement) versus the 20% or so they are getting in the plan.
I understand I give up the protection of the automatic stay and all the fees/interest/etc pile up from the date of filing, but it seems like either way I lose the $150k. One way I am still in CH13 for another 4 years or so, the other I am out.
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