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Chapter 13 early discharge question

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Anonymous
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Chapter 13 early discharge question

Sorry If this has been asked already. 

I am 22 months from finishing my ch 14 plan. With the way the housing market is I am planning on selling my house and using the proceeds to pay off the remaining balance. My lawyer said that the Trustee has been asking clients for additional money to approve the sale. Anyone familiar with this?  

 

Also would the court have any issues with contingency in the contract for the buyer to sell their house? I doubt it but just wondering. 

 

Any other advice or issues I should be aware of? 

 

Thank you

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2 REPLIES 2
Horseshoez
Valued Contributor

Re: Chapter 13 early discharge question

Are you in a 100% plan?  If so you shouldn't have much of an issue.  That said, if your Chapter 13 plan is less than 100%, especially if it is significantly less, then paying off may be a very bad idea.

I categorically refuse to do AZEO!
Message 2 of 3
Anonymous
Not applicable

Re: Chapter 13 early discharge question

What you are saying is that the trustee is asking for more money, not to pay it off but to make you pay more toward your plan.  If you are on a 100% plan then you are going to get there anyway, but faster if you pay extra.  If you are not, then this is going to the creditors and not to the plan schedule.  You wont be getting out earlier than normal.  Now my trustee allows you to get out 2 months early if you pay the last two up front at the end, because it takes the trustee at least 6 weeks to get you into court to dismiss if they object.  I would not worry about what the trustee wants, but make sure your schedules are updated when you file your motion to incur debt.  And dont make them look like you are rolling in extra money.  Its possible that the trustee could object and then file a motion to ammend your plan to get that extra money you are now claiming that you can afford to pay toward a mortgage.  The best situation would be if you were getting a mortgage the same as what you are paying in housing now, but you will be the owner not renting or whatever.  We were able to buy a home in our 13, and the trustee was totally fine with it.  Our mortgage was just about the same as our rent at the time, so there was nothing left on the table for the trustee to ask for.  But be careful.  Your attorney should know the trustee and what is within reason as far as expenses when you update your schedules in order to file that motion.  Good luck.

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