Car payment done in 5 months

[JOEYBOY]

Hi, im 36 months into a 60 month plan my car payment is not included in the trustee payments i pay the car direct to the bank , ill be done in 5 months so my question is
is my payment to the trustee going to go up because i dont have the car payment no more? i was thinking of getting health insurance with the extra cash
what do you guys think?

[LadyInTheRed]

Check your confirmed plan. Your payment will only increase if the plan provided that it will increase. It may be that your car payment was averaged over 60 months when determining your DMI in which case your plan payment would not increase once the loan is paid off.

[mountanddo]

I don't know the answer to your question but you'd think there would be some paperwork or notice given to you if this was going to happen. Did you ask your attorney what would happen after you paid the car off?

[keepsmiling]

Health insurance is a good idea regardless.

[kornellred]

This issue should have been discussed with your attorney during the planning stages of the bankruptcy. I had two 401K loans during the beginning of my Chapter 13 plan and they are now both paid off, but I still have 10 months to go. You would think that Chapter 13 trustees would review all such types of information before recommending confirmation of a Chapter 13 Plan. Maybe they do, and timing is the issue. Maybe it is a common oversight. Obviously, there is no law requiring the adjustment of Chapter 13 plan payments on account of expiring loans, or else the question would never come up. All trustees are different, and they are all required to operate within the law. You can bet that no one in a Chapter 13 plan is going to contact the trustee directly and announce that they have more disposable income to contribute to their plan base.
The OP still has 2 years to worry about what might happen if he or she says nothing. The best advice is to discuss the matter with the attorney who filed your petition.