Chapter 13 question

atjohnson · ‎08-22-2012

My plan base for Chapter 13 is $18,000. My plan is $300 a month for 60 months, and I live in NYS. Here they allow you to keep $1500 of you tax refund, no more.

My question is what happens if I meet that plan base of $18000 in 48 months? Will I be able to discharge then, or will I have to continue to pay into the Chap. 13 for the full 60 months?

Starting Score: ~494 preChap13 to Chap7 BK conversion (2/21),
Current Scores as of 11/17/16, 602 TU, 642 EX, 589 EQ
Goal Score: 700

Capital One ($800 limit), Cap One Quicksilver ($500 limit), Credit One ($500 limit), Barclay ($1300 limit), American Express ($1000 limit)

Poorboi · ‎08-22-2012

You can pay it off as soon as you get the money. I recently did mine. I came up with 7k and called my trustee for a pay off. And it only took a couple weeks

Rhaeny · ‎09-08-2012

I think paying off early only applies if you are in a 100% plan. If you are not in a 100% plan, any extra monies are just added on to increase the amount you pay to your creditors. I thought the same thing and my attorney told me this same information. Maybe the laws differ from state to state but you should talk to your attorney and find out for sure. Please let us know the results.

Poorboi · ‎09-08-2012

What do you mean by %100 plan some loans are secured and some are unsecured, that's how they figure out who gets paid what %

Rhaeny · ‎09-08-2012

@Poorboi wrote:
What do you mean by %100 plan some loans are secured and some are unsecured, that's how they figure out who gets paid what %

Yes obviously there is secured and unsecured and what you pay back is a percent of what you owe. If you owe $100K and your base plan is $20K then you are paying back 20%. If you are in a plan where you are paying back 100% then there is an option to pay off early if you come into some cash. Many people have paid off a 100% plan earlier than planned. However if you are in a plan that pays less than 100% then there may not be an option to end your case early. This may vary from state to state so you need to verify that yourself. Your base plan is just that...base. It is what you are to pay back based on your income and expenses, but if you are required to turn over bonuses and tax refunds then you will pay back more than your base amount.