topic Re: Chapter 13 Paying Plan Off Early in Bankruptcy

Chapter 13 Paying Plan Off Early

Eppie1983 — Wed, 04 May 2022 11:35:56 GMT

Hey everybody,

I had my lawer put a motion in to pay my plan off 3 months early based on getting a loan from my father and paying him back.

He said the previous trustee allowed it and the new trustee said if my case was filed before his time he would allow it.

Any of you guys have any experience with this? I am just wondering if there's any chance it would get shot down?

The motion went in yesterday with objections due by 6/1 and the hearing is 6/8. My lawyer said that once that is complete and I make that last payment, he will swiftly put a motion in to discharge!

Re: Chapter 13 Paying Plan Off Early

Lurker22 — Wed, 04 May 2022 19:35:59 GMT

@Eppie1983 wrote:
Hey everybody,
I had my lawer put a motion in to pay my plan off 3 months early based on getting a loan from my father and paying him back.
He said the previous trustee allowed it and the new trustee said if my case was filed before his time he would allow it.
Any of you guys have any experience with this? I am just wondering if there's any chance it would get shot down?
The motion went in yesterday with objections due by 6/1 and the hearing is 6/8. My lawyer said that once that is complete and I make that last payment, he will swiftly put a motion in to discharge!

I asked my attorney about this a bit ago, he informed me my trustee doesn't allow it so 6 more payments to go!

Re: Chapter 13 Paying Plan Off Early

Eppie1983 — Wed, 04 May 2022 19:45:47 GMT

Sorry brother, you are so close!

I am very lucky. Our current trustee does not allow it, but my case was filed like a month before he took over and the former trustee did allow it. So he filed a motion to pay it 3 months early. If all goes well, my last payment is 6/8 and hopefully discharge right after. My dad is lending me the money and I am just going to pay him back over a few months, way less than the plan payment of 1380. Good luck on whats left of your journey!

Re: Chapter 13 Paying Plan Off Early

madmann26 — Wed, 04 May 2022 21:12:00 GMT

If the trustee is ok with it, go for it.

Just understand that you may not discharge early.

Re: Chapter 13 Paying Plan Off Early

Eppie1983 — Wed, 04 May 2022 21:46:30 GMT

May not discharge early or close case early? He told me once order to pay is approved he will quickly file a motion to discharge.

@madmann26 wrote:
If the trustee is ok with it, go for it.

Just understand that you may not discharge early.

Re: Chapter 13 Paying Plan Off Early

Eppie1983 — Sun, 29 May 2022 20:50:12 GMT

So I make my last payment a week from Wednesday. Do I have to wait for another hearing to get the discharge letter and perform the audit and all that the trustee needs to do? Trying to figure out timeline so I can get cash out to do an addition.

Re: Chapter 13 Paying Plan Off Early

madmann26 — Mon, 30 May 2022 13:18:10 GMT

It can take months to discharge. I paid mine off in March and I'm still waiting.

I signed my 1328 last month.

There are certain timelines that cannot be sped up, one of which is giving your creditors 30 days to object to the dismissal.

Re: Chapter 13 Paying Plan Off Early

Eppie1983 — Mon, 30 May 2022 14:43:50 GMT

Thanks Madmann.

I am sure it's different state to state, trustee to trustee. I am in Maine. I hear you, I waited 30 days to get a hearing to allow me to borrow for payoff. Got a loan from my father to pay 3 months early. Then I'm not sure if trustee does audit then and sends the payments complete memo or if I have to wait 30 days for the creditors to cash the checks. I guess I don't know the full by the book process. Making last payment is bittersweet though. Even though waiting, the financial burden is over. Congrats on completing your plan too!!

Re: Chapter 13 Paying Plan Off Early

madmann26 — Mon, 30 May 2022 15:10:37 GMT

Have you signed your 1328 yet?

Re: Chapter 13 Paying Plan Off Early

Eppie1983 — Mon, 30 May 2022 15:26:43 GMT

No when is that signed after payments complete?

Re: Chapter 13 Paying Plan Off Early

madmann26 — Mon, 30 May 2022 21:49:29 GMT

For me it was about 6 weeks after my last payment.

Re: Chapter 13 Paying Plan Off Early

TRC_WA — Tue, 31 May 2022 20:36:49 GMT

@Eppie1983 wrote:
So I make my last payment a week from Wednesday. Do I have to wait for another hearing to get the discharge letter and perform the audit and all that the trustee needs to do? Trying to figure out timeline so I can get cash out to do an addition.

@madmann26 wrote:
It can take months to discharge. I paid mine off in March and I'm still waiting.

I signed my 1328 last month.

There are certain timelines that cannot be sped up, one of which is giving your creditors 30 days to object to the dismissal.

For what it's worth I filed in Jan 2017...

I thought my last payment would be Jan 2022... and waited the entire month of Feb expecting my discharge only to get a notice from the trustee in early March that I still owed $730 as a final payment. The reason was because my payment amount was something like $380 every 2 weeks... and I made $800 payments once a month.

Napkin math shows 12 months = 48 weeks... but there are 52 weeks in a year. So even though I was "overpaying" I was still "underpaying" LOL... what's funny is the trustee never said a word till the very end... and neither did my attorney.

I sent them $800 which arrived at the trustee on March 16th and got a refund check for $70 from the trustee along with a discharge dated March 22nd a couple weeks later.

As far as a 1328 I have no idea what that is... but I did a 3 hour pre-discharge online course and signed some paperwork at the end of January per my attorney so maybe I signed it then. Regarding paying off early I will say the Ch 13 I filed in 2007 (Georgia trustee) did allow me to pay it off a few months early in 2012... but this one filed in 2017 (Washington state trustee) did not. I asked about 6 months ago and my attorney said it was a no go... reason being I would have to explain why I had $5k lying around to dump on my Ch 13 payment.

LOL

Re: Chapter 13 Paying Plan Off Early

madmann26 — Tue, 31 May 2022 22:26:36 GMT

@TRC_WA wrote:
@Eppie1983 wrote:
So I make my last payment a week from Wednesday. Do I have to wait for another hearing to get the discharge letter and perform the audit and all that the trustee needs to do? Trying to figure out timeline so I can get cash out to do an addition.
@madmann26 wrote:
It can take months to discharge. I paid mine off in March and I'm still waiting.

I signed my 1328 last month.

There are certain timelines that cannot be sped up, one of which is giving your creditors 30 days to object to the dismissal.
For what it's worth I filed in Jan 2017...

I thought my last payment would be Jan 2022... and waited the entire month of Feb expecting my discharge only to get a notice from the trustee in early March that I still owed $730 as a final payment. The reason was because my payment amount was something like $380 every 2 weeks... and I made $800 payments once a month.

Napkin math shows 12 months = 48 weeks... but there are 52 weeks in a year. So even though I was "overpaying" I was still "underpaying" LOL... what's funny is the trustee never said a word till the very end... and neither did my attorney.

I sent them $800 which arrived at the trustee on March 16th and got a refund check for $70 from the trustee along with a discharge dated March 22nd a couple weeks later.

As far as a 1328 I have no idea what that is... but I did a 3 hour pre-discharge online course and signed some paperwork at the end of January per my attorney so maybe I signed it then. Regarding paying off early I will say the Ch 13 I filed in 2007 (Georgia trustee) did allow me to pay it off a few months early in 2012... but this one filed in 2017 (Washington state trustee) did not. I asked about 6 months ago and my attorney said it was a no go... reason being I would have to explain why I had $5k lying around to dump on my Ch 13 payment.

LOL

I was asked the same question and my response on paper was -

"Savings acquired over the course of my chapter 13 plan."

Not a single rebuttal since this is the purpose, to live within your means.

Re: Chapter 13 Paying Plan Off Early

Jeffster1 — Wed, 01 Jun 2022 06:33:50 GMT

My understanding is that generally you can only get DC early if you are in a 100 percent plan. I got my DC 1.5 years early but I was in a 100 percent Chapter 13. My attorney had contacted me after filing my 2019 taxes about my large increase in income and said that the trustee would have a problem with that. I asked him about paying it off early and that's what I did.

Re: Chapter 13 Paying Plan Off Early

TRC_WA — Wed, 01 Jun 2022 16:41:47 GMT

@madmann26 wrote:
@TRC_WA wrote:
Regarding paying off early I will say the Ch 13 I filed in 2007 (Georgia trustee) did allow me to pay it off a few months early in 2012... but this one filed in 2017 (Washington state trustee) did not. I asked about 6 months ago and my attorney said it was a no go... reason being I would have to explain why I had $5k lying around to dump on my Ch 13 payment.

LOL
I was asked the same question and my response on paper was -

"Savings acquired over the course of my chapter 13 plan."

Not a single rebuttal since this is the purpose, to live within your means.

Yeah I don't even waste time trying to figure things like this out... one state says yes... another state says no... whatever. Getting an early discharge wasn't a big deal to me considering I started acquiring new CCs 2+ years ago while I was in the middle of the Ch 13 plan. It's not like I was waiting for the discharge to get my first rebuilding CC... because I definitely wasn't.

That's another one of those things that YMMV... some swear by waiting for discharge on new accounts... I didn't... and I'm better off for it. I think you'd be hard pressed to find someone who has built the profile you see in my sig...

... 2 months after discharge.

Re: Chapter 13 Paying Plan Off Early

Eppie1983 — Thu, 02 Jun 2022 01:00:33 GMT

I understand the 30 days, ive been waiting since 5/3 for hearing to allow me to pay early on 6/8 lol.

The part of the process I dont understand is:

Can the lawyer file the motion to discharge and start the 30 days while:

the trustee does final audit and send the court that I am good to go or

Do I have to wait until the next money when the trustee sends creditor final funds or does the audit have to happen after creditors paid.

I guess my point is that the law only says discharge when final payment made, it doesnt say once creditors are actually paid. Its a plan, my part is done and in my opinion I should be discharged and let the trustee send them the money and just hold up closing the case. Seems stupid to hold me up from discharge when the trustee has my money. I guess I am just annoyed at how long things take that should be super easy. lol

If anybody here knows what has to happen before what that would help me understand how fast I can through and out of this.

Thanks guys.

Re: Chapter 13 Paying Plan Off Early

Eppie1983 — Wed, 08 Jun 2022 01:53:39 GMT

Signed 1328 as part of motion for discharge which will be filed tomorrow! he said the hearing isnt until 7/27 did your discharge have to go through the judge too?

Re: Chapter 13 Paying Plan Off Early

madmann26 — Thu, 09 Jun 2022 13:15:02 GMT

@Eppie1983 wrote:
Signed 1328 as part of motion for discharge which will be filed tomorrow! he said the hearing isnt until 7/27 did your discharge have to go through the judge too?

They all have to go through the judge.