Just over two years in and fingers crossed....

[Limitman]

I am just over two years in and my Mom decided she would pay off the remainder of my bk! I requested a payoff from my lawyer and she said they might not let me do it because it's under three years. Well I got a letter from the trustee stating the payoff amount and my Mom sent the payment in a couple days ago. So now I guess I wait to see if the trustee accepts this all. I'm assuming since they sent the letter that would mean it could be done. I hope I find out soon cause this waiting is killing me. It would be such a burden to be done with!

[mountanddo]

Were you in a 100% payback plan?

[spidge]

Were you in a 100% payback plan?

I sure hope they were. I wonder if there would be ethical questions if the trustee sent a payoff quote and then simply applied it to the creditors, yet expecting them to continue with payments.

[Limitman]

No I am not in a 100% payoff plan. As it stands I pay back 87% to my creditors, only a few claimed claims. I would assume if they sent me a payoff letter that they would accept a payoff otherwise it would not have gotten this far. Seems simple, my trustee as been easy so far except for the beginning but since then I have had no contact from trustee at all

[lrprn]

Does your lawyer know that your mom already sent a check to your trustee? (Please say yes.)

[Limitman]

Yes my lawyer knows. She said she will wait until the payments posts on the trustee website then start the discharge process. To be honest I'm a little confused cause it almost seems too easy, other than coming up with the money of course. However the whole bk process seemed really easy now that I have gone through it except of course for the wage garnishment. Well it's been since Monday since they received the payment and so far no word. Hopefully by the end of the week I will know what happens.

[mountanddo]

I'm just curious if you are just over two years into your Chapter 13 you've paid in about $25,000. At 60 months you would of paid in a about $64,000. That leaves you with $39,000 to pay if you went your entire 60 months. Can I ask what the pay off amount was? I can't imagine that the trustee would allow you to borrow $39,000 from your mother but then again I don't know how all this works. Maybe the trustee doesn't care where you get the money as long as you pay the amount of your 13.

[Limitman]

My payoff was just over $34000. Its not a loan from my Mom its just a gift.

[andy158]

I was under the impression that if you weren't in a 100% payback you can not "buy out" the balance at any point. Maybe Ohio district is different, but in West Virginia we cannot do this. Does the trustee get full payment as if you paid the entire amount of plan payments? Just curious.

[LadyInTheRed]

One possibility is that while the original plan estimated 87% payoff to unsecured creditors, not all of the creditors filed claims or the claims were lower than expected. Also, if the trustee took any tax refunds, that would not be included int he 87%. That 87% was only an estimate. It may be that the pay off amount provided by the trustee does pay 100% of allowed claims.

[Limitman]

Well the payment posted to the trustees website so it looks like they accepted it. I haven't seen anything yet on pacer.

[mrswilson]

wow nice mom

[Limitman]

Yeah I know she is the best! No updates yet just shows payment was posted. No movement yet on the wage order or anything like that.

[Limitman]

Ok I finally have somewhat of an update. The trustee needed a letter from my Mom stating where the funds came from and that I do not have to pay them back. That was sent out last week and I checked Pacer and a court hearing is scheduled for January 3 for a motion to complete the plan earlier. Also I just checked the trustees website and it says "plan completed" and case closed as of 11/7/11! Hopefully this means progress and I can finally lose the wage order.

[hum08]

I also live in Ohio and 3 years into the plan. I was wondering if I could borrow against my 401k to get out of the bankruptcy. May I ask what district you are in?

Thank you.