In a 60 month payback is it 60 payments or 60 months? We get26 vs 24 paychecks a year

[cbmmom5]

Hi, this might sound like a dumb question but I am in a 100% 5 year pay back plan. We get paid 26 times a year instead of 24. We split our payment into each check so some months we pay the trustee three times and some months we pay 2 times. I believe I am right in saying that by paying 26 times a year instead of 24, we will make 13 payments a year. So here is my question: By paying 13 full payments a year will we get out early? Does the time count as 5 full years; 60 months or 60 payments. If it goes by 60 payments we will get done in about 4 yrs 7 months.

Thanks for helping me clarify this. Oh, one more: Do you start counting your 60 months from the date you are confirmed or from the first payment made after you filed. We filed in June 2010, started paying in July 2010 and were confirmed in October 2010.

Thanks

[CCB35]

cbmmom ,it depends if you are in a 100% plan or not.If you are ,its possible to get out earlier if all your creditors are paid in full.thats the only way

[LadyInTheRed]

As an over the median filer, you must commit all of their disposable income to the plan for 5 years (unless you pay 100% of allowed claims sooner). Bankruptcy Code Section 1325(b)(4)

In most states, the 5 years starts with your first payment. There is at least one state where it starts on the confirmation date. I can't remember what state it is, but I think it starts with an M, but is not Montana. Maybe Missouri, but I'm not sure.

[irishonyx33]

I think it's Michigan where the 5 years starts at confirmation.

[kornellred]

60 payments and 60 months are the same thing in bankruptcy, because payments are due monthly. Your pay frequency is irrelevant. If you are filing in Michigan, where (ostensibly) your payments start with the Chapter 13 plan confirmation date, all of the money that you have given the trustee prior to confirmation will be deducted from the plan base, and the payment amount will be adjusted up or down to reflect that.

[newbie2]

60 payments and 60 months are the same thing in bankruptcy, because payments are due monthly. Your pay frequency is irrelevant. If you are filing in Michigan, where (ostensibly) your payments start with the Chapter 13 plan confirmation date, all of the money that you have given the trustee prior to confirmation will be deducted from the plan base, and the payment amount will be adjusted up or down to reflect that.

Actually, that's not true. In Michigan the "extra" payments are distributed to the unsecured creditors. Example: We made payments for 3 months prior to confirmation. Our percentage to unsecureds went up by a corresponding amount. In the end (just finished payments) the unsecured creditors received about 10% more than the plan estimated.

[steveok]

I'm not being snide, but read your question again...In a "60 MONTH" payback.....you just answered your own question...

[lrprn]

Hi, this might sound like a dumb question but I am in a 100% 5 year pay back plan. We get paid 26 times a year instead of 24. We split our payment into each check so some months we pay the trustee three times and some months we pay 2 times.

We are in the same situation - both of us are paid every two weeks with 26 paychecks/year. What was done in our case is that our monthly Ch 13 payment was calculated to include the two extra paychecks a year. We paid 60 payments (just made our final Ch 13 payment this month! )

Since you are paying your trustee out of every paycheck rather than once a month, that's a somewhat unusual arrangement. The answers to your questions are going to depend on how your total plan payment amount was calculated by your lawyer on the Means Test and Schedules.

Ask your lawyer if your plan incorporated the two extra paychecks a year or was based on 24 paychecks/year rather than 26 (I'm betting it included all 26 paychecks for each of you). Also ask your lawyer when you should expect your last payment to be taken from your paychecks. (I'm betting you'll be paying for 60 months from your first payment made or until all claims are paid 100% in full, whichever comes first.)

One other thing that could help answer your question about the number of payments - take a look at your copy of your filed Ch 13 plan. Does your confirmed plan state a total number of payments made bi-weekly or a total number of monthly payments?

Do you start counting your 60 months from the date you are confirmed or from the first payment made after you filed. We filed in June 2010, started paying in July 2010 and were confirmed in October 2010.

Since you don't live in Michigan, you start counting from the first payment made.

[toojerm]

My trustee payments are deducted from my check on a 100% payback, so twice a year (this year its Jul and Dec) there is nothing taken from the third check.

[puggymoo]

I work at the post office and also get paid 26 times a year. I had them take it out of my paycheck and it would of cut it buy 8 months I believe.

[cbmmom5]

Hello,
I checked my papers and it states that I would need to make 60 payments so I am hoping that by making 13 payments a year, I will be done sooner. It doesn't seem like it is tied to months. It just states payments. Thanks for the information