Almost over...paid early.... what now?

[JenR]

I have a phone appointment with our attorney on the 26th, but wanted to see if I could get some information from here

Details: 30 months into 36-month, 0% plan, in California ($505/mo payment). We're only paying our car, attorney and trustee fees. 2nd mortgage (stripped) and unsecured creditors all filed claims. As a side note, what we claimed was owed on our car, and what the car company claim differed (they claimed approximately $1200 LESS than what we claimed - and what the confirmed plan was based upon).

After the 30th payment is disbursed, the car will be paid off and we'll only owe $100-ish for attorney fees. Essentially, from what I can tell, we'll be "paid off" (and then some) with the 31st payment. So my question is...what can we expect to happen? Is it possible to get an early discharge? Will we be required to make the final 5 payments... and, if so, how will that money be disbursed (since what was required is paid off)?

Just trying to get an idea of what to expect going forward

TIA!

[kornellred]

As long as you have paid 100 percent of what was owed to unsecured creditors, and other priority debts as outlined in your confirmation document, you can get an early discharge. Simple as that!

[JenR]

100% of what was owed based on the confirmed plan....or what was owed based upon what the unsecured creditors claimed? That's the part that I'm unclear on....

[DebtEnder]

100% of allowed claims. Sounds like in your case some of your unsecured creditors will get small bit pf payment before your payments are up. The changes back in 2005 changed how early you can get out of a BK13. There is no early payoff anymore unless there is no one left to pay. But you said your stripped 2nd did file a claim and as of right now has not got anything so I think your stuck till the end, which at least is not that much longer.

[Pandora]

My understanding is you must be in your plan for a minimum of 36 months; of course, I could be wrong, but thats what we were told. Our lawyer told us we are eligible for early payoff anytime after the 36 month mark in our plan even though we arent at 100%.

Perhaps its because we were under median when we filed and technically qualified for 36 months, but had to stretch it to 60 due to income; only have our 2nd (being stripped) and a few small medical bills in our plan.

[spidge]

I believe that you are in it to the last payment. If you are paying less than 100% back to creditors then whatever is left after priority claims goes to the unsecured claims.

I do hope what Pandora explained applies to me though. It sure would be nice to be able to pay it off early and be done with it. I to elected to go with the five year plan even though I was given the option. I just couldn't see any success in a payment that is almost double. My fingers are crossed for us all.

[Pandora]

spidge,

I hope it works that way for you, however it may be Trustee / District specific. I've asked our lawyer (probably too many times LOL ) was he SURE we could pay off early if we were able to due to not being at 100%; his answer (and trustee's office reply) is "Yes - you may pay off early anytime after month 36 should you desire".

I keep going back and forth with it - and am nervous as hell to even rock the boat in this area, so we'll probably just stay in it for the full 5 years - and bank everything we can for a 'rainy day' vs. paying out early. Our Trustee did not require any tax refunds or any income increases at all. Our entire plan base was based off of our vehicle values (owned outright) - and had no debt other than our 2nd mortgage and a few medical bills we were required to list.

[HHM]

As to OP, jenR, she is in it 'til the end of the 36 months.

[BKAttyMI]

This might be location specific, but you are in the plan for a minimum of either 36 months or 60 months (depending on the plan). Any extra payments will be paid to your unsecured creditors pro rata. Most plans say something along the lines of "plan will continue until debtors have paid 10% of unsecured debt or for 36 months/60 months, whichever pays more to unsecured creditors."

[ccgirl]

I don't think you can get out early. My base plan stated 33% paid to each creditor and I am at 45% paid right now to each. I am 4 years into a 5 year plan. You cannot get out early anymore unless all creditors are paid back 100%