Help me understand this please!

[krissdris]

New to the forum here, so if someone has explained all of this, please let me know.
My wife and I are currently in Chapter 13, and have made 6 payments in a 36 payment plan.
We are considered below Median because my income is a combination social security disability and disability insurance.
I am currently slated to pay back 73% of unsecured debts.

Here's my question.
On NDC.org, I see that only 18 out of 63 unsecured creditors have actually filed a proof of claim. It has been over 120 days since the meeting of creditors. So far, I have paid $22,000 of $50,000 of the debt that has had claims filed. If I pay off 100% of the claims instead of 73%, and finish paying off the priority debts and secured debts, will I then be eligible to receive a discharge early? The reason I ask is that I have no idea where the money I would continue to pay would go for the year and a half that would be left on my plan.

Any thoughts? I can supply more info if needed.

My attorney is sort of slack on getting back to me with questions I send to him...

[LadyInTheRed]

Welcome to bkforum!

On NDC.org, I see that only 18 out of 63 unsecured creditors have actually filed a proof of claim. It has been over 120 days since the meeting of creditors. So far, I have paid $22,000 of $50,000 of the debt that has had claims filed. If I pay off 100% of the claims instead of 73%, and finish paying off the priority debts and secured debts, will I then be eligible to receive a discharge early?

Yes.

The reason I ask is that I have no idea where the money I would continue to pay would go for the year and a half that would be left on my plan.

If you pay more to the trustee than is required to pay allowed claims, you will receive a refund. Regardless of what you see on NDC, do not stop sending your plan payments until the trustee or your attorney tells you to stop.

[Pandora]

you must remain in your bk for 36 months is my understanding - you cannot get out earlier, even if under median. You may end up paying more to unsecured vs. secured if you end up paying secured off.

[LadyInTheRed]

Pandora, if I understood correctly, the OP asked what will happen if 100% of all approved claims (including unsecured) are paid before the end of the 36 months. I think in that case, the plan can end and the debtor can be discharged. (see Bankruptcy Code Section 1328(b))

Under 1325(b)(4), a plan can be less than 36 month applicable committment period if the plan pays all unsecured claims in a shorter period.

[kmjatl]

I had a similar experience. I was originally on a 32% payback for unsecured. A few creditors did not file claims. At some point in time (I don't remember when) I saw that my % payback had changed to 100%. When all was paid off, the TT refunded the overage and I received my discharge.

[Pandora]

LITR - I must've misunderstood the way the OP was phrasing it. If thats the case, then the OP is one of the luckiest people on this forum as far as Ch. 13 goes!

We all know SSD is exempt from the means test but IS counted as far as DMI goes. OP is only 6 months into a Ch. 13 payment plan - yet has paid $22,000 into that plan in that timeframe... Lets see....math says that is a monthly payment of $3,666 a month! Holy crap!

[159515951]

Pandora, I had the same "holy crap" moment when I did the quick math, especially considering the OP was able to get a 36 month payback plan because they're "below median".

If Alabama's median wages are that high, I'm moving tomorrow.