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finishing chapter 13 early

Established Member

finishing chapter 13 early

I just faithfully paid my 36th payment of 60 in a chapter 13. At the end of the year, one of my creditors (bank of america) began issuing refund checks to my trustee stating that it has been paid in full due to a cram down and avoiding 2nd loan per plan.I also recieved a 1099 from them saying that it was satisfied. My trustee has since been paying my creditors more than they had before.  Mathematically, I now owe $4700 instead of $14700. I figure that by December(44th payment), all my creditors will be paid according to the 21.7% that was agreed upon. Could this mean I am finished, or will I have to continue making all 60 payments.  My payments are $629 per month. My lawyer (who i can barely get a hold of) has never seen such a thing? Thank you!

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Re: finishing chapter 13 early

There is a split in the courts as to whether a plan can be paid off early without paying 100% of the original debt. It will depend in what Federal District the original filing was done. Amongst the courts that have allowed early discharge, the one common thread is that the source of funds is not income to the borrower, for example, it can be a loan from a family member or a refinancing of a home. Good luck!!

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Chapter 13: April 2013 (Discharged March 2015) EQ FICO 591
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