Additional payments

[ilbcertain]

I have about 8 more months of a 60 month plan (500.00 per month ) I wanted to start the new year out with a clean slate and be done with this, can I send in extra money every month so I can pay this off early? I have had payments deducted from my paycheck and have never been contacted by the trustee, and don't want too. will it red flag me if I start sending in extra money each month to pay off early?

Thanks

[woeisme]

If it's not a 100% plan, where you are paying back all your secured and unsecured debt, they may apply the extra $ to the unsecured and require you to keep paying until you hit the 60 months, so I wouldn't do this unless you are sure your trustee allows early payoff (most don't, because you are supposed to be paying all of your disposable income already, so if you can pay more, then this is considered "disposable" and won't get you out early). But hang in there, 8 months til freedom!

[Slingerland]

My suggestion is to put the "extra" money into a savings account and just ride it out. You're almost there!

[warmbloodmom]

I would check with your lawyer for I am in the same situation and want to pay it off early, he said 8 months is a little too early but 4 months my trustee would have no problems with at all. My lawyer and trustee have a very good working relationship so he knows what he would tolerate and would not

[justbroke]

Never ever send "extra money" to the Trustee without speaking with your attorney. Some Trustees will just say "thank you" and increase your base plan amount, collect their 10% commission, and distribute the rest to the unsecured creditors.

If you have "extra money" put it into a savings account and don't touch it!

[kornellred]

During my Chapter 13, one of my payments was somehow overlooked, and I sent in an extra payment (even though it would be late) to avoid any possibility of the trustee filing for a dismissal due to nonpayment. The missing payment was eventually accounted for, and at the end of my plan, I had paid in more than my plan base amount called for. The excess was returned to me, even though I did not expect it. From this experience, I came to the conclusion that the trustee looks for two things: the submission of the entire base plan amount, and the exact number of payments made as specified in the plan confirmation document. The debtor does not have the option of pre-payment unless the entire amount of indebtedness is to be paid, or the trustee allows it - which most would not.

[spidge]

After three years into the plan I paid a little extra here and there and the base amount was not effected in any way. Your mileage will likely vary depending on many factors like district rules, trustee, under median, % payback, and I bet there is more. So no broad brushed statements will likely be correct for everyone.

I am under median and past the three year mark. My attorney already told me that I could pay the base and be done.