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Chapter 13 Paying Plan Off Early

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madmann26
Valued Contributor

Re: Chapter 13 Paying Plan Off Early

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

Current FICO 9 Scores



Message 11 of 18
TRC_WA
Senior Contributor

Re: Chapter 13 Paying Plan Off Early


@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

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 12 of 18
madmann26
Valued Contributor

Re: Chapter 13 Paying Plan Off Early


@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. Smiley Wink

Current FICO 9 Scores



Message 13 of 18
Jeffster1
Valued Contributor

Re: Chapter 13 Paying Plan Off Early

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.

 

 

 

 

 

 

FICO 8 (3/1/24) EX 805 EQ 824 TU 844
FICO 9 (2/17/24) EX 821 EQ 778TU 850
I practice AZEO - NEVER above 1% utilization across all cards.

Current lineup as of 9/23
American Express Gold | American Express Blue Cash Everyday 11K | American Express Blue Cash Preferred 10K I American Express Marriott Bonvoy Bevy 5K I American Express Hilton Honors Surpass 3K I Bank of America Customized Cash Rewards Visa 20K | Kinecta MyPerks Rewards MC 35K | TD Bank Double Up Visa 4K | USBank Platinum Visa 5K | BMO Harris Cash Back MasterCard 12K | Capital One SavorOne MC 3K | Capital One Walmart MC 2K | NFCU Amex 15K | NFCU CashRewards Visa 15K I Citi Best Buy Visa 10K I Macy’s Amex 1.5K I Bread Financial American Express 8K l AAA Daily Advantage Visa Signature 6K I Wells Fargo BILT World Elite MC 30K I BCU Cash Rewards Visa 8K I Chevron Techron Advantage Visa 2.5K I JCPenney Mastercard $6K I UCLA Wescom CU Rewards Visa 7K I
Message 14 of 18
TRC_WA
Senior Contributor

Re: Chapter 13 Paying Plan Off Early


@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. Smiley Wink


 

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.

 

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 15 of 18
Eppie1983
Valued Member

Re: Chapter 13 Paying Plan Off Early

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.

 

Message 16 of 18
Eppie1983
Valued Member

Re: Chapter 13 Paying Plan Off Early

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?

Message 17 of 18
madmann26
Valued Contributor

Re: Chapter 13 Paying Plan Off Early


@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.

Current FICO 9 Scores



Message 18 of 18
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