If it IS true about not paying it off early, then perhaps you should consider paying your creditors 100% with an increase in income. First, don't beat yourself up about being in Ch. 13. It's already hard enough. You need to be kind to yourself and realize that there's hope for tomorrow. Knowing that, I challenge you... no, I DARE you to rethink your sense of value to a potential employer and start looking to greatly increase your income. If you will do that, it will change everything for you.
Nikey, I think what your lawyer was referring to was if you want to complete the plan before the actual time. For example, if the repayment plan is 5 years, then basically, you pay the trustee whatever amount determined for the next 5 years. If you are not in a 100% repayment plan, then the trustee determines what creditor gets what amount and when they get it. For instance, if you have a plan that stipulates you pay say 60% of your obligations then that 60% is divided over the 5 years; however, the trustee may decide to pay the entire 60% obligation that you would owe to Citibank [for example] in the first year. The next year, he/she may pay 3 other creditors and so on. The creditors are bound by the terms of the BK and they get what they get. After the plan is completed, if they were scheduled to get 60% of their balance, that's it. Done. But, if you try to complete the plan early, someone may not get paid their full 60%, or several creditors may not get what was actually stipulated in the plan. Then you would be responsible for the full payment to all of your creditors. You can, however, complete the plan earlier, however, it does require permission from the court and a change in payments to the trustee to make sure each creditor gets what they were promised at the inception of the plan. At least that is the way I understood it [before the new changes]. Anyway, since you already filed the 13, you might as well continue as planned, take the initial hit and move on from there. Seriously, after a year or so with good payments to the trustee, your credit will rebound. The worst thing you can do is fail to make payments and have the 13 dismissed. That is a nightmare, and I know from personal experience. Then all of the creditors come back at you with the force of an F5 tornado....and if you really want to see your credit score tank....well, you can imagine.
Just be careful on how BIG your payments are. I am in a 3 year chapter 13 and I paind the given amount but insyed of even month I paid in twice a month for 3 months then w/ 4 months left I paid it totally off with $ from my saving. I recieve a questioning letter from the bankriptcy people askign were I got the $. They wanted to make sure that I wasn't screwing over the creditors. One point to not is that I field under the OLD bankruptcy laws and they only made me pay 20% of my debt so if I could have afforded mor they probably would have made me pay more. I just sent the response letter so we will see.
And my attourny DID tell me to pay it off, he just didn't warn me that I might screw myself (I'm crossing my fingers)
I too filed ch-13 BK in 09/2000. It was discharged five years later paid to the areement. About my fourth year, I was just tired of it and wanted to just pay it off and be done with it. My lawey, and the trustee said no because I would have to go before the judge to get it approved. They said the Judge would consider that if you had that kinf of money $3500/$4000 to pay then you could afford to pay a larger payment each month. If you have a wage increase or decrease money coming it, you are suppose to report it so your payments can be adjusted. My payments started out at a higher amount than I could afford each month, I was really struggling to make it, but it was impossible, so a family member helped me until I could get a new court date set to go back and request my payments to be reduced. The judge dropped my payment by $100.00 each month for about six months until my disability started paying me. I had to go back before the judge to report the income and my payment jumped up like $200.00 more each month. Little did I know that in the end of my BK I had to pay back the six months where my payment was lowered. That was a shocker for me-but it was only $600.00.
I am ok with it now, but like others. I felt unworthy, dirty, quility, embarrassed. You name it and I felt it, plus the fact that I was tramutized from the ordeal of getting hurt on my job, and having to go on disability. I lost my home becasue it couldn't be added in the BK because it could't be paid off in the five year time frame. My heart was filled with so much hate and anger, my self esteem hit rock bottom. So much stress...dealing with my injury and pain, the loss of my job, no income, losing my home, and the embarrassment for my self respect. I was so tramatized I had to seek medical help. I couldn't sleep, I couldn't eat my weight dropped down so much it was unhealthy.(however I did qualfy for food stamps-so I did have food). I just couldn't eat it. I was a nervous wreck, I didn't know what tomorrow would bring.
Lucky for me I did own a smaller home out in the country, so I was not left homeless. But losing my other home...all that I had paid on it and my substanial down payment was a total loss. My laweyr did contact the creditor and told them I wanted to do a volintary reprocession which protected me from any lawsuits or sued for the difference they sold to a friend for a lower price and sue me for the difference in the balance.
As time went on, I recovered some and felt better about myself and my self esteem build back up. It really wasn't my fault. Now if I had run up a bunch of bad credit and over extened myself in debt then it would have been different. So I finally accepted the fact that it was beyond my control. Being hurt and not able to work, going on disability. It was just one of those senerio's you just have no control over it, it was an unexpected event and Bk-13 was my only alternative at the time.
So back to your feeling so badly, time does heal. Things do get better even when you think they won't. As you get further along into your bk-13 you will start getting pre-approve cc's, and other credit offers. I get at least five a week, which of course I shred. I have done a pretty good job of rebuilding my credit, and once the BK-13 drops off in Sept, and all the other creditors listed in the BR are dropped, mu credit score should really improve.
So all the lemons that I have been given over these past years-I've been making a lot of lemonade. So I suffer more now with heartburn (from the lemonade-LOL) than low self esteem and unworthiness as a human being.
There is light at the end of every tunnel. So get on with your life and don't beat yourself up lke I did.
No way - no where. YOU ARE NOT A LOSER!!!! You were mature enought to take responsiblilty for your actions and I commend you for that. Yes it will be tough, but with a little time and a little persistence you will see the light again with a much cleaner profile and the world in front of you. Besides, I have known several people, co-workers and the light who received credit cards and car loans after two years of BK, sometimes less. However, they are sub-prime loans but who cares because it spends the same and gives you a chance to rebuild. KEEP THE FAITH. YOU WILL COME OUT ON TOP.
You are not a loser because you filed BK so don't think of yourself like that. Have some self respect for yourself and realize you took the way out you had to in a difficult situation. You have a bright future to look forward too and while it will take a few years it is possible to rebuild from BK.
Most importantly believe in yourself. Have a positive attitude and recognize there is a light at the end of the tunnel. Sure you're down at the moment but you'll come back just fine with a little hard work.
Message Edited by ErikArizona on 06-23-200703:36 PM