Results 1 to 4 of 4
  1. #1
    Join Date
    Aug 2008
    Posts
    19

    Default Chapter 13

    Middle District Florida

    Just curious, can a Chapter 13 plan be paid off early? I have seen several "blogs" about how you should be in the plan at least for 36 months, before an "early payoff" is feasible. I am only paying back roughly 15%-20% of the debt.(I understand 100% payback does not affect any time limts for early payoff).

    My only concern is that my lawyer has told me that I can pay it off a lot earlier than 36 months; I just am confused by the conflicting information I have seen, or is each Bankrutcy District Trustee different. Any input is appreciated.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Chapter 13

    We don't know enough about your case to be second-guessing your lawyer. The general advice comes from the fact that the bankrupt person's ability to make an early payoff demonstrates that the trustee has significantly underestimated their discretionary income (or they have new sources of income that could be applied to the debt).

  3. #3
    Join Date
    Mar 2009
    Posts
    2

    Default Re: Chapter 13

    I am 7 months into my 5 year plan and my attorney recommended me not to pay off earily. Mine is a 0% payback of unsecured and repaying my state and irs taxes back. I was told your monthly payment to the court is based on the budget. If you pay off earily the trustee will wonder where you came up with the extra money and maybe make you pay a larger percentage back to the creditors.

    That is also why I am concerned about the purchase of a new home while on the plan. I am not sure I want to go down that road. Hope that helps.

  4. #4
    Join Date
    Aug 2008
    Posts
    19

    Default Re: Chapter 13

    Thanks for the input, and I wish us both a speedy financial recovery....I am only 2 months in my CH 13, but we'll see what my lawyer says...he's been doing bankruptcy law for 12 yrs and very knowledgeable(Was highly recommended). I was trying to get more input about the 36 month rule(so to speak) when you can do an early payoff without any objections from the trustee...but the going answer on this forum seems to be consult your attorney.(from the other members)

    1. Sponsored Links
       

Similar Threads

  1. Chapter 13: Trustee Dismissing Chapter 13 Bankruptcy, Can We File Chapter 7
    By craigandnay in forum Bankruptcy Law
    Replies: 2
    Last Post: 06-14-2010, 06:23 AM
  2. Chapter 7: Keeping Vehicle with No Equity in Chapter in Chapter 7
    By creed2474 in forum Bankruptcy Law
    Replies: 3
    Last Post: 08-11-2008, 05:03 AM
  3. Chapter 13: Conversion Of Chapter 13 To Chapter 7 - 8 Years After Chapter 7 Discharge
    By daybyday in forum Bankruptcy Law
    Replies: 2
    Last Post: 05-28-2008, 03:56 PM
  4. Bankruptcy Issues: Chapter Seven And Chapter Thirteen Bankruptcy Fees
    By socalfem in forum Bankruptcy Law
    Replies: 5
    Last Post: 03-05-2008, 06:30 AM
  5. Chapter 13: Converting From Chapter 13 To Chapter 7 - Will The Trustee Refund My Payments?
    By NBHAMBLESSED in forum Bankruptcy Law
    Replies: 5
    Last Post: 09-27-2007, 11:31 AM
 
 
Sponsored Links

Legal Help, Information and Resources