question on principal owed

[Athena62]

I added up what our principal owed is and we only have about 20,000 left to pay and have been making payments since 2010 when we started the chapter 13. if the principal owed is what is left then how can the base plan be 168,000.00 alot of the creditors didn't put claims in so I was wondering will that amount go down because it would be great if we don't have to pay all that back when the creditors that have 0 claim amount. hope someone can help me with this..waiting to hear back from lawyers office but they are hard to get in touch with...

[despritfreya]

If your base was $168k but it will take less $$ to pay 100% of all allowed claims because not all creditors filed claims, then your Plan will simply end once the 100% is paid.

Des.

[Athena62]

Our payment is 2765.00 a month so if we have around 20,000 for principal owed then we take the 20,000.00 and divide it by the 2765.00 to figure out when it will be paid off? which I did that and it is about 7 months..that would be awesome cause our lawyer said we were set up for 5 year but that was with all creditors collecting I guess...thanks for any help..so hoping it will be paid off this year...been a rough time with this payment...and believe me no more credit cards if we don't have the money then we don't get it.

[magic13]

Wow, a 2800 a month payment, what is included in that payment and what is your income and DMI like?

[Athena62]

that is our mortgage payment too..

[Athena62]

I am so happy talked to Trustee today and found out that the principal owed is what we have left to pay the base amount isn't what it shows cause alot of creditors didn't claim money we owed them.Trustee told me to call lawyer to see how many more months we have left to pay but they never call me back. I googled it and it showed to divide the principal owed by the payment amount and it will give you an estimate of how many more payments. from what I figured it will be 7 months but also said in my search have to pay the trustee fee too so hoping that was already worked in the payment amount..so excited cause we have been in this for 2 years and will get done earlier than they told us lawyer said it was a 5 year plan but that was with all the creditors included...

[despritfreya]

that is our mortgage payment too..

Just remember, if your Plan payment includes your regular monthly mortgage payment, once you stop paying the Trustee you MUST begin making direct regular mortgage payments to the lender.

Des.

[tammygirl1]

Wouldn't the amount divided by the principal be the plan payment minus the mortgage amount? Just curious..

[Athena62]

and now I forgot to take the income tax check off the amount of the principal owed cause they just got it and the april payment hasn't posted yet so we only have 6 more months to go...so glad most of the creditors just let the accounts go...or we would be in a 5 year plan...which started in june of 2010...

[keepsmiling]

What wonderful news!!! Congrats on your great good luck! Nice when things start looking up.

Feel free to spread it around liberally here on the forum .... I know we need some here up a few miles north of you

Really makes you wonder, tho, how those creditors work. They pursue relentlessly until they are almost guaranteed a bite of the apple, and then they drop the ball. Go figure. You'd think they preferred the chase to the actual capture.

[Athena62]

thanks

just wish I could get a hold of the lawyer to confirm what I have figured on how many payments left they never return calls and I keep calling them...Hoping I am right on only 6 payments left
thanks for the encouragement and hope it helps others in the same boat...

[spidge]

I would not bet on it. My numbers on the balance vs payments left do not add up. I cannot make heads or tails of how it will pan out. I look at it like the payback % issue, it does not matter to me because I know when the plan is complete I am golden. Now I do wonder if one is below median and selected the 60 month plan could it end early because not everyone made a claim?

[momofthree]

Does that $20000 balance owed include your monthly mortgage payment, or is it only what is still owed to unsecured creditors? I imagine that it is probably just what is owed to unsecured creditors...

[Athena62]

it is just what is owed to unsecured creditors they put our home and car in with the chapter 13 so car will be paid off too..we will do the mortgage payment on our own when we are done in october(last payment is October) I also saw they did a gap payment for the mortgage so I guess they will make one more payment to them for november so we can be ready to pay in Dec...I am so excited I know you all probably think I am crazy but this has been a rough 2 and a half years for us...and like I said hubby and I already decided no credit cards ever again. we have learned our lesson for sure and will put money away for things we will need down the road..for house repairs and we need grass, and other things so have to have the money to get things we need and will not get it till we have the cash to pay for it..we are teaching our kids to not do what we have done and do what we suggest to them, no credit cards only use cash...thanks for everyones advice and answers...

[momofthree]

Here's my thinking, and I could be wrong, but this just makes sense to me. IF your $2765 payment includes your mortgage, then not all of that is going to your unsecured creditors, so you can't just divide $20k by your plan payment to get the remaining months.

For example, I don't know your mortgage payment, so lets just pretend it's an even $2000. That would mean that only $765/mo is going to your unsecured creditors, so to get your remaining months you would divide $20k by $765, which would be 26 months left. Now, again, these are totally arbitrary numbers because I don't know the actual, but that is just how it would seem to work...

Hope this helps...