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  1. #1

    Default Paying Off a Chapter 13 Plan Early, 100% Repayment Plan

    My question involves bankruptcy in the state of: NY

    I filed for BK Chapter 13 in 2009 with a 100% payback plan. Not all the creditors filed a claim. Now, I only owe about $ 9,500.00. I would like to pay off my BK Chapter 13. I just have a few question and I would appreciate some help.

    1. Can I pay it off since I am in a 100% pay back plan?
    2. If I pay it off, will the creditors who did not file a claim be entitled to get paid too?
    3. I am planning to use my $ 5,000.00 tax refund plus $ 4,500.00 401k Loan. Can I do that?

    Thank you.

  2. #2
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Paying Off Chap.13 with Tax Refund and 401k Loan and Creditors Who Did Not File C

    1. Can I pay it off since I am in a 100% pay back plan?

    Yes

    2. If I pay it off, will the creditors who did not file a claim be entitled to get paid too?

    No. If a creditor failed to file a timely claim that creditor will not be part of the payoff amount. That creditor will be subject to your discharge.

    3. I am planning to use my $ 5,000.00 tax refund plus $ 4,500.00 401k Loan. Can I do that?

    Yes, but you need to ask your Trustee for an official payoff statement since the Trustee must factor in his fee and any interest that needs to be paid. The payoff statement will indicate that the amount is good through a specific date.

    Des.

  3. #3

    Default Re: Paying Off Chap.13 with Tax Refund and 401k Loan and Creditors Who Did Not File C

    I understand about the trustee's fees which is 10% of the claims. What do you mean by factor any interest? I do not think there are interests involved with Chapter 13 repayment, there are?

  4. #4
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Paying Off Chap.13 with Tax Refund and 401k Loan and Creditors Who Did Not File C

    Quote Quoting mjsantos
    View Post
    I understand about the trustee's fees which is 10% of the claims. What do you mean by factor any interest? I do not think there are interests involved with Chapter 13 repayment, there are?
    There would be interest if there are any secured creditors. Further the Trustee's fee is capped at 10% but could be less. You MUST get a payoff quote.

    Des.

  5. #5

    Default Re: Paying Off a Chapter 13 Plan Early, 100% Repayment Plan

    Well explained. Thank you!

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