Plan termination

[kaygee]

If, for some reason, I decide that going forward that this ch 13 thing is not going to harm me and decide to opt out, will I get a refund of all the payments I have already made to the trustee?

[mountanddo]

I am guessing you mean if you decide that Chapter 13 is doing you more harm than good can you opt out and get all the money paid to the trustee back since being in the plan?

Don't know the answer to this but my best guess would be no. If you get your chapter 13 dismissed your creditors have the right to go after you for what you owe plus all the interest that would of accrued since you initially defaulted. You could be possibly be subjecting yourself to judgements and garnishments depending on where you live and other circumstances. The money the trustee have distributed to your creditors may be applied to your accounts but with the additional interest that might not be an advantage to you.

Would you then try to file a chapter 7 or try to pay off the debts yourself? I would consider all options before committing to a chapter 13 as dismissing it may do you more harm than if you entertained other options first. It's probably not a decision you would want to back out of.

I'd be interested in other people's responses about what the ramification of doing this would be.

[CCB35]

ITs my understanding that you wont get that money back ,the money in the account will be sent out to your creditors.

[lrprn]

CC835 is right. If you voluntariliy dismiss your 13, ehatever you have already paid in is gone. Same thing if your trustee forces a dismissal for any reason, such as non-payment.

Keep in mind that if you "opt out", all your original debt comes back PLUS interest and penalties. Your creditors and collectors can start harrassing you again. And the Ch 13 stays on your credit report for 10 years anyway.

Please talk over all your options with your lawyer before making any decisions. The results of voluntarily dismissing your 13 could be worse than whatever you are going through right now inside your 13.

[HHM]

If you dismiss pre confirmation, you get the money back (sometimes minus a trustee admin fee).

Post confirmation, the money is distributed.

Yes, you can get out of a chapter 13 at any time, but there are consequences. Once you go down the BK path, in whatever chapter, the goal is a discharge, you need to reach that goal one way or the other. If you don't get a discharge, all your debt comes back to life, you are immediately in default, all accumulated interest and late fees are added back, very bad scenario.

[mountanddo]

AND if you are paying your attorney through your plan you will owe that additional amount as well. Thought I'd add that.

[kaygee]

Ok, just getting frustrated at progress of process....Does anyone know if the trustee has the ability to access my bank account info without me knowing?

[HHM]

Ok, just getting frustrated at progress of process....Does anyone know if the trustee has the ability to access my bank account info without me knowing?

No

[kaygee]

Wow, glad to see your timeline on this. Makes me feel better. My lawyer has not been very good communicating this to me. I have an asset that may be disputed so I can see what may happen .