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About Chapter 13 discharge

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About Chapter 13 discharge

I have been reading this forum and I have gotten great information my question is I am currently in a Chapter 13 since June 2007, and I thought it would take 5 years for a discharge not sooner?  I understand everyone situation is different but I was wondering why other's may be shorter.

Thanks

Message 1 of 6
5 REPLIES 5
Regular Contributor

Re: About Chapter 13 discharge

I think it depends on how much you owe, what your income is and what percentage the courrt says you can afford to pay back.  Ours was 4 years 2 months.  When we went to court they told us it would be 5 years but 2 of our creditors did not come to court or send the paperwork back to the court that they needed to to be included so they got nothing and cannot come after us.
Message Edited by debtfree09 on 04-06-2009 12:08 PM
Message 2 of 6
Frequent Contributor

Re: About Chapter 13 discharge

For a chapter 13 - if you are below the median income, you may qualify for a 3 year plan.

If you are above the median income, you will be in a 5 year plan.

 

That being said, if you in a 100% payback plan, which will pay off your debt sooner than the years you are assigned to the plan, you could be done sooner than the 3 or 5 years you are assigned.

 

If you are NOT paying back 100% to unsecureds, you are required to remain in your plan at the time determined based on the 1st paragraph.

 

Make sense?

 

K


You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing!
Message 3 of 6
New Visitor

Re: About Chapter 13 discharge

How soon should I apply for a Mortgage after a Chapter 13 discharge?
Message 4 of 6
Frequent Contributor

Re: About Chapter 13 discharge

I think, right now, the dichotomy is between 'old law' (pre-October 2005), and 'new law'. Most of the 'new law' cases are 60 months, period.

I saw the train-wreck -- both in my personal finances, and bankruptcy law -- coming, and filed 5 months before the 'new law' took effect. I paid 79.9 percent of my unsecured claims in 43 months, and was discharged in January.

 

Message Edited by oldhack62 on 04-12-2009 08:07 PM
Message 5 of 6
Frequent Contributor

Re: About Chapter 13 discharge

If varies by situation.

I closed on a new FHA mortgage just 55 days after discharge -- but I had almost perfect credit until my ('old law'Smiley Happy) Chapter 13 filing, and paid it off as scheduled over 43 months. Thus, many of my paid-in-full, non-IIB accounts are still on my CRs for a couple of years. When I applied for a home loan a mere week after discharge, my middle FICO score (undeterminable now, with Experian opting out) was in the 640s.

If you were in desperate straits when you filed Chapter 13, you're probably out of luck. If you have a foreclosure on your record, you're gonna have to wait three years from its date.

I was lucky. I didn't foreclose on a mortgage, and paid my claims according to schedules, both before and after filing.

Best of luck.

 

Message Edited by oldhack62 on 04-12-2009 08:08 PM
Message Edited by oldhack62 on 04-12-2009 08:09 PM
Message Edited by oldhack62 on 04-12-2009 08:13 PM
Message 6 of 6
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