Early payoff question!

[Mimsey11]

Hellp folks I'm brand new on here, and I was kinda wondering if anyone might be able to answer my question/s... I am currently in a chapter 13 plan, and I believe that a 100 percent of my credtiors claimed! Has anyone ever heard of getting out early of your 13 when a hundred percent of the creditors claimed? Some claimed more than I actually owed them, due to late fees or what have you...

I filed in june of 08, I haven't missed a payment my vehicles will be paid off next year or 2011. And it seems that the trustee has only paid on the vehicles, I also noticed that when I get my payment forms from the trustee there seems to be a pool of money he is apparently paying himself! Could anyone possibly explain this to me?

thanks for any and all help!

[Flamingo]

Is your confirmed payback at 100% or is it at a lower percentage? Your trustee is paying the secured and priority creditors first and the trustee is paying himself normally - his fee is included in your plan and he is just paying himself. That is normal. Unsecured creditors are paid after priority and secured creditors are paid. Then you will see the pool of money diminish. Pull out your confirmed plan and review and most of that is spelled out in there.

If you are at a less than 100% confirmed plan, you cannot buy out of your plan unless you buy out at 100%. I suggest speaking with your attorney who can update you on that and also as to what is going on with your plan. I am assuming you are receiving quarterly or semi-annual updates from your trustee and/or attorney and are confused as to what is going on.

[Mimsey11]

Yeah you pretty much got it right on Flamingo, I get semi annual updates fro the trustee.. I just recently started getting notices stating that certain claims have been reassigned, I guess they're being sold to other collectors. I am pretty sure that the plan pays 100 percent, it had something to do with my means test! I still think my lawyer had his math screwed up, it seems as though we have barely enough to get by on! Even the trustee objected initially stating that the plan payment was more than I could afford! But all was well as long as I made that first payment on time, thats what the lawyers told me to do so the judge wouldn't throw it out!

[sassiebaz]

What about buying out if you are a 0% payback? Meaning we are only paying the trustee and our lawyers....

[despritfreya]

Practice pointer:

You indicated that you are a 100% Plan because the means testing left you enough "disposable income" to require such. Are you on a level payment or a graduated payment Plan? Did you have to manipulate your Schedule J (monthly expenses) to show you could afford 100%?

The reason I ask is that when you did your bk (2 years ago) you probably had to match the funding means testing said you could afford. Last July that changed for all of us. If you can no longer afford a 100% Plan you might want to discuss with your attorney modifying it to reduce funding in light of the Lanning decision. Now, if Schedule I & J show you can afford to pay 100% then you will still be required to pay 100% but it might be worth looking into.

Just a thought.

Des.