Early payoff, not so sure on advice.

[gld2pan]

Our 2014 taxes turned out better than had been anticpated in regard to gain on sale of home from inheritance. Most of the inheritance had been turned over to trustee, but he let us keep 5K for possible tax liability we could have faced as per accountant.

So we asked our lawyer for the early pay off. He quoted the exact amount I came up with using NDC. Lawyer has advised we just pay that amount and not included any extra for the trustee fees. I think we will end up owing more. He told us sometimes the trustee waives the fee.

Will update, but not so keen on this.

Lawyer did advise discharge could take up to 3 months. Trustee's are very busy right now with cases that are closing.

[out4good3]

I've always wondered.......

If you can pay off early, do you just pay off the balance owed on the plan or do you have to make whole all the creditors and pay 100%.

[gld2pan]

Best of my knowledge you have to pay 100%. May be rare exceptions always want to discuss with your lawyer.

[out4good3]

If that's the case, I think I'll just keep my head down low and ride out the storm.

[justbroke]

Early payoffs really depend on your District and circumstances. In some Districts, being in a Chapter 13 for 36 months allows a debtor to ask for a payoff (of the base) without paying 100%. In the Florida Districts, and those under the 11th Circuit Court of Appeals, you cannot payoff early because they reasoned that "applicable commitment period" means just that.

"[the Chapter 13 code] clearly says that the applicable commitment period shall be five years for an above median income debtor, such as Tennyson." In re Tennyson 611 F.3d. 873, 877 (11th Cir. 2010)

[spidge]

In my district if you are under the median income for the area you live you can payoff the base (not the plan payback percentage) early after three years. I think the reasoning is that if you are under median you can choose to be in a 36 month plan anyway.

[gld2pan]

As I expected the trustee did take his fees from payment sent in Feb. I felt we should add extra but went with lawyer's advice. Well now March payment has been sent. This should be our last one

[dmc-2008]

Congrats!!! Its done!

[spidge]

Congrats gld3pan.

[Sammie]

Don't be surprised if they send March's payment back to you. That happened to us back in November. We had an early payout, sent another payment in & it was sent back to us before Christmas. Congratulations.