100% Payback and Tax Refund

[abbeyv73]

in GA - Chapter 13 - 100% payback plan

Received a letter in the mail about my tax refund and that I am required to surrender it. WHY?? If I am in a 100% payback, does this just pay me out earlier?

Thanks!
Abbey

[puggymoo]

Yes you are required to surrender it. It will shorten the length of the chapter 13.

[toojerm]

was that stipulated in your filing? I have a 100% plan in WA, and in the filing my atty checked that my returns would be my own. If, you pay 100%, they can't take more than that, and the plan legally has to be 5 years if over the median income, so they cannot force you to pay it off early.

[greenthinker]

Hi toojerm

I too am in Washington and will be a 5-year, 100% payback plan (have retained an attorney, but not filed yet). From what you said above, it sounds like if not all unsecured creditors file claims, it would lower the plan payment. Is that correct? Do you have the option of paying the plan off early if you have the financial ability to do so?

Thanks!

[puggymoo]

NO the plan can be shorter. Our trustee had us at 60 months and then with 2 seperate loans being paid she shortened it to 48 months. I am not fortunate to get money back but if it ended sooner that would be much better.

[toojerm]

Abbey

Hi toojerm

I too am in Washington and will be a 5-year, 100% payback plan (have retained an attorney, but not filed yet). From what you said above, it sounds like if not all unsecured creditors file claims, it would lower the plan payment. Is that correct? Do you have the option of paying the plan off early if you have the financial ability to do so?

Thanks!

Ideally yes, but somehow ECAST settlement corporation bought up a lot of my debt, and filed claims on it. I don't know why any creditors would sell to them when the plan was 100%. So my payment didn't go down. I believe you could pay it off early, but why? There is no interest accruing, so it would be better for me to pay any extra down on my student loan, or my mortgage, which is outside my plan.