Can this be paid off early?

[whitner]

Just got past the 90 day bar date, Chapter 13, plan confirmed for 60 months. Only secured claims paid at 100% show on data13center, 0 % to unsecured. Been reading on the forum under old law it's best to send in extra after 36 months of payments. Since I am under new law 60 months 100% secured only do the 36 months apply? Have 26 pay periods a year and would like to apply 1 or 2 , but don't want payment to go up or looked as more disposable income? Could this plan be paid off early? Any suggestions will be appreciated, only 4 months into plan.

[AngelinaCat]

Welcome to the Forum.

I can't answer your question directly because I am an Asset Ch7 case. The Chapter 13 people will be along later on. But there have been several discussions in the three or four months about whether a CH13 can be paid off early. Look for those in the CH13 Board and see what was said there.

I would also advise you to forget about reading anything about the 'old law' before October 2005. The BK laws were changed greatly.

[LadyInTheRed]

If your income is above median, your plan will last 60 months or until you have paid 100% of allowed unsecured claims, whichever comes first. If you have extra money, I suggest you put it in savings. If you save enough to pay 100% of unsecured claims before the end of 60 months, then contact your attorney and ask them to contact your trustee about an early payoff. A lot can happen in 5 years. If you have an increase in expenses or decrease in income before your plan ends, you'll be happy to have that money in savings instead of having made extra payments to the trustee that you can't get back.

[whitner]

Thanks Cat and LadyIn The Red!

[spidge]

If your income is above median, your plan will last 60 months or until you have paid 100% of allowed unsecured claims, whichever comes first. If you have extra money, I suggest you put it in savings. If you save enough to pay 100% of unsecured claims before the end of 60 months, then contact your attorney and ask them to contact your trustee about an early payoff. A lot can happen in 5 years. If you have an increase in expenses or decrease in income before your plan ends, you'll be happy to have that money in savings instead of having made extra payments to the trustee that you can't get back.

You will learn to have immediate access to you money. Stay liquid. Even though it sounds like a great idea to sock away money in something like a 401K you cannot easily get to it if you need it. So be patient(very hard to do) and keep your funds available for the unexpected, and as suggested when you get to the point where you can pay off you will be golden.

[dmc-2008]

Accumulating savings is the hard part! Hang on to your $$$$

[angel2002]

We opted to have the payments drafted from my husbands pay check each week. 1/4 of the payment comes out but on the few months of the year where there are 5 paydays that 1/4 of the payment still gets taken out of his check. We are in a 3 year plan and over the course of 2 years and 5 months we actually show that we'll end up finishing up early (hopefully) 4 months ahead of schedule. Saving the extra money is great advice. I'd would have rather done that then paying them more than I had to each month. There were a few months in the first year that the extra 1/4 payment would have came in handy. Don't get me wrong I'm happy that we are technically ahead of schedule but in reality when you need $$ it's nice to know that you have some available for emergencies.