Payoff Chapter 13 amount

[fastcars69]

Is it possible to payoff the amount of your Chapter 13 settlement or are you totally obligated for the entire 5 years?

Thanks
Bill

[justbroke]

From all of the caselaw, it would be difficult to payoff a Chapter 13 without paying 100% of the allowed unsecured claims; unless you were an under-the-median income filer. Your question, as posed, would indicate an over-the-median income filer who must be in plan for 5 years "unless" they pay 100% of the allowed unsecured claims.

There haven't been many cases that I can even reference. I have only read of a couple of cases (post BAPCPA cases confirmed after 10/2005) that were able to. However, those cases were under-the-median income filers.

[fournee1]

From all of the caselaw, it would be difficult to payoff a Chapter 13 without paying 100% of the allowed unsecured claims; unless you were an under-the-median income filer. Your question, as posed, would indicate an over-the-median income filer who must be in plan for 5 years "unless" they pay 100% of the allowed unsecured claims.

There haven't been many cases that I can even reference. I have only read of a couple of cases (post BAPCPA cases confirmed after 10/2005) that were able to. However, those cases were under-the-median income filers.

I am on a 52% payment plan. Does this mean I can pay off the bk early? If so, how will it effect my credit.

[justbroke]

I am on a 52% payment plan. Does this mean I can pay off the bk early? If so, how will it effect my credit.

The question is one of what is your "applicable commitment period"? In other words, are you in a 36 month or 60 month plan. If you are in the latter, 60-months/5 years, you are over-the-median, and you will not be able to payoff early unless you pay 100% of the allowed claims.

[fournee1]

hello thank you for you response. I am on a 36 month plan with 12 months to go.

[fastcars69]

Thanks for your help all.

[spidge]

I qualified for a 36 month plan (way too high for me) but was given a choice, and I went the 60 month route. I am in a 3% plan with a lien strip and have been wondering about this very question myself. Please bare with me for a moment.

If an under median filer chooses the 60 month plan can he/she buy out of the remainder after 36 months even though that payoff balance is based on the original percentage of pay back and is less than 100%(full payback to all creditors) of the overall balances owed the creditors?

What is considered when satisfying the BK13? Time or amount paid (regardless of payback %)? Both? Is it district to district?

I am sure many here have answered this before and thank you again.

[Andyman]

Is it possible to payoff the amount of your Chapter 13 settlement or are you totally obligated for the entire 5 years?

Thanks
Bill

I was in a 5 year plan with two secured creditors and three unsecured. I got a letter from the trustee saying my plan was complete and yet I had one year remaining. The letter said to not send anymore money. Today, I got a check from the trustee for $95 with a note from him saying to deposit the check upon reciept as a Final Report cannot be filed until checks have cleared.

[justbroke]

I was in a 5 year plan with two secured creditors and three unsecured. I got a letter from the trustee saying my plan was complete and yet I had one year remaining. The letter said to not send anymore money. Today, I got a check from the trustee for $95 with a note from him saying to deposit the check upon reciept as a Final Report cannot be filed until checks have cleared.

Did any of the unsecured creditors file an "allowed" claim?

[Air00Max]

My attorney told me that I could pay the pay the plan off after 36 months, since I am in a 60 month plan. Which is what I'm planning on doing.

[LadyInTheRed]

Did any of the unsecured creditors file an "allowed" claim?

Based on other threads, apparently so. Andyman's attorney doesn't even understand why the plan ended early. From his thread:

I just got off the phone with my attorney and he said he's seen several CH13 plans that have ended this way...he said he wasn't even going to ask why and neither am I!!

http://www.bkforum.com/showthread.php?79140-Yahoo!!!!!!&highlight=

[LadyInTheRed]

My attorney told me that I could pay the pay the plan off after 36 months, since I am in a 60 month plan. Which is what I'm planning on doing.

In earlier posts you said you were in a 50 month plan. I suspect your income was under median when you filed, so your minimum commitment period is 36 months. Is that true?

[justbroke]

I agree. I would not look a gift-horse in the mouth; so the saying goes!

[Air00Max]

I am in a 60 month plan, so if I put 50 months that was a typo. No I was not under the median income. My attorney said that I have to stay in the plan for a minimum of 36 months to avoid 100% payback. After 36 months I can complete the payoff based on my % payback.

[LadyInTheRed]

I am in a 60 month plan, so if I put 50 months that was a typo. No I was not under the median income. My attorney said that I have to stay in the plan for a minimum of 36 months to avoid 100% payback. After 36 months I can complete the payoff based on my % payback.

I won't believe what your attorney said until you come back and say you paid off your plan early without paying 100% of unsecured debt and received a discharge.