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Ch 13 discharge - advice?

Regular Contributor

Re: Ch 13 discharge - advice?

I do bank with a credit union. 

 

My case is completed but not discharged.   The 30 day notice went out 4/5 and I should get discharged 14 days after that...  So 5/19 at the latest.   I monitor my case at the PACER website so when documents are filed I can view and print them. 

 

When you said your BR was too recent to get financed were you talking about a 7?  I filed a 13 in April 2009.  I don't consider that recent. 

 

As far as the financing my score is 653... Not bad for not even having a discharge yet.   My car loan wasn't included in the BR so the last 4 years of payments has definitely helped. 

 

I'm not expecting a problem should I decide to go with another car.   I talked to a dealer yesterday and my score plus the fact I have a good trade and $5k in cash should put me in a new vehicle if I go that route. 

Message 11 of 23
Valued Member

Re: Ch 13 discharge - advice?


TRC2k13 wrote:

I do bank with a credit union. 

 

My case is completed but not discharged.   The 30 day notice went out 4/5 and I should get discharged 14 days after that...  So 5/19 at the latest.   I monitor my case at the PACER website so when documents are filed I can view and print them. 

 

When you said your BR was too recent to get financed were you talking about a 7?  I filed a 13 in April 2009.  I don't consider that recent. 

 

As far as the financing my score is 653... Not bad for not even having a discharge yet.   My car loan wasn't included in the BR so the last 4 years of payments has definitely helped. 

 

I'm not expecting a problem should I decide to go with another car.   I talked to a dealer yesterday and my score plus the fact I have a good trade and $5k in cash should put me in a new vehicle if I go that route. 


Dear TRC, and apologize

 

It is BK 13 and I didn't mean to mention about the " too recent" to discourage you.  As i said we tried the dealer fiance first and it's always tough everywhere and i said that so you take it as example ( a bad one lol).

 

And you are doing it right, please stay with CU.  Right now, just before any other banks and dealer contact us..CU already called and accepted our loan request with a quite decent rate.  I think you will be totally fine.  Good luck Smiley Happy

Message 12 of 23
Valued Contributor

Re: Ch 13 discharge - advice?


LearningExperience wrote:
I have read that if the trustee sees that you have extra money lying around (disposable income) they will increase your plan payments if you are not paying at 100%.



I think that is more of myth than a truth and mostly made from those that tried to hide money so that they didn't have to pay the trustee.  In other words they were trying to have their cake and eat it too.  As long as you have properly listed all of your bills and income, and from that an agreed upon monthly payment, you are in the clear.  You have to save some money  as a proper budget would set you up to save the monies required for periodic bills.  At anytime throughout the year I had a few thousand in my bank account.  I mean if I was able to save on groceries and any of the other things that I purchased then that money went into my pocket.

 

Also I was in bk for 5 years and not one time did they ask for my bank statement and I made a few changes to my plan payments.  The only time that the trustee asked about extra money was for any bonuses and tax refunds (I personally thought that it was horrible to take my tax refunds), but the trustee felt that if I lived off a lower amount of money for the year then I didn't need my tax refund.  That was hogwash and many districts don't collect tax refunds....lucky me huh?

 

Anyway it is yes and no about the trustee taking your money, it just depends on the district rules and how tough your trustee is.  But unless you give the trustee some reason to deep dive into your personal business, at least that's what happened in IME.


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014
Message 13 of 23

Re: Ch 13 discharge - advice?

You are right. The trustee cannot see in your bank account. They will know you have extra "disposable income" when you mail them a big check for payoff. I have been trying to do research online regarding early payoff and have seen some recommendations not to do this. It may increase the total amount you owe if you are not in a 100% plan. They will take that money and increase your plan payment if they feel the total amount owed to the creditors is now unfair. I was just hoping to hear that early payoff worked for you and how you did it. Did you contact your attorney?
Message 14 of 23
Valued Contributor

Re: Ch 13 discharge - advice?


LearningExperience wrote:
You are right. The trustee cannot see in your bank account. They will know you have extra "disposable income" when you mail them a big check for payoff. I have been trying to do research online regarding early payoff and have seen some recommendations not to do this. It may increase the total amount you owe if you are not in a 100% plan. They will take that money and increase your plan payment if they feel the total amount owed to the creditors is now unfair. I was just hoping to hear that early payoff worked for you and how you did it. Did you contact your attorney?

Ahhh....Learning....dumb me.  I'm sorry I misunderstood what you were saying.  I misread that part of your conversation stating that this was early payoff.  My comment was referring to just having saved money.  Okay I get it now.  In that case yes if you are trying to payoff early and not in a 100% plan there could be a problem in that the trustee may say that if you have the money to pay off early, give me that money AND you can just stay in your plan until the end of the 3 years.  The only cases that I have read about that ended early are in a 100% plan.  

 

As for having some savings, that's the only thing I was saying that I didn't beleive that the trustee would care about as long as you accurately listed all of your bills and income.  Yea sorry for the misunderstanding I had.

 

 


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014
Message 15 of 23
Regular Contributor

Re: Ch 13 discharge - advice?


LearningExperience wrote:
You are right. The trustee cannot see in your bank account. They will know you have extra "disposable income" when you mail them a big check for payoff. I have been trying to do research online regarding early payoff and have seen some recommendations not to do this. It may increase the total amount you owe if you are not in a 100% plan. They will take that money and increase your plan payment if they feel the total amount owed to the creditors is now unfair. I was just hoping to hear that early payoff worked for you and how you did it. Did you contact your attorney?

 

I wasn't in a 100% plan and it hasn't affected me.  I paid back around 25% of my unsecured debt thru the Ch 13.

 

All I did was contact my attorney and he contacted the trustee who gave me a payoff amount ($1897.82) that was valid for the next 20 days.  All I did was mail a cashier's check for the amount.

 

It was right at 4 years in my BK and I had the extra cash so I decided to pay it off and be done with it.... all I'm waiting for now is the discharge which should happen in the next 30-40 days.

Message 16 of 23
Valued Contributor

Re: Ch 13 discharge - advice?

Okay I believe that if you are under the median income and you have paid at least 36 months then you can pay off early. The laws are so confusing to understand sometimes. Don't quote me on that but I think that could be the reason it was accepted by the courts.

Nonetheless a BIG congrats on completing your case!! Mine lasted 66 months and when I finally received my discharge I felt like I had earned a badge of honor or something.

Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014
Message 17 of 23
Highlighted
Regular Contributor

Re: Ch 13 discharge - advice?


Rhaeny wrote:
Okay I believe that if you are under the median income and you have paid at least 36 months then you can pay off early. The laws are so confusing to understand sometimes. Don't quote me on that but I think that could be the reason it was accepted by the courts.

Nonetheless a BIG congrats on completing your case!! Mine lasted 66 months and when I finally received my discharge I felt like I had earned a badge of honor or something.

 

Thanks!

 

As said, 48 months for my case and didn't get any problem with the payoff.  There were a few bumps in the road early in my case (try living and paying your CH13 on $300 a week unemployment) but when I did get behind I always got my payments caught back up.

 

When I moved cross country for my job my payment amount never increased from the $127 per month because I was on a self payment plan with no payroll deduction. The new job has allowed me to save over the last couple years and I used some of my extra cash for the payoff.

 

Bottom line is I completed the plan as it was laid out and paid the full amount required by my Ch 13 over the course of 4 years.  How much cash I have on hand shouldn't matter because I did what was required by the court.

 

At any rate... it's exciting.  My score went  up another point last week... 655 EQ which isn't bad at all for someone just finishing a 13 case.  I'm expecting my discharge by May 19th according to the court documents I read.

Message 18 of 23
Regular Contributor

Re: Ch 13 discharge - advice?

Got my discharge today!

 

Booyah!

 

 

Message 19 of 23
Valued Contributor

Re: Ch 13 discharge - advice?

Congrats!


Starting Score: 11/29/12 TU 527; EQ 565; EX 564 fako - bk7 dc'd 2/15/13
Current Score: 1/22/15 TU 645; EQ 605; EX 633 New goal 675
Cap1 sec $1k (SD) / Fingerhut $2k / Flagship $12k / cashRewards $12k / NavChek $15k / Amazon $2k / Von Maur $1k / Firestone $2.2k / BCU $3k / NFL $1k / QS1 $750 / Target $400 / PPSC $800 / Conoco $700 (last app 09/29/14)
Message 20 of 23