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Originally Posted by gonderman What is the name of your state? WA
What does a buy out mean on a chapter 13. |
This normally means someone who has filed for a chapter 13 bk can use the equity in their home to pay off creditors early & may be even able to "buy out" the plan (pay all of their creditors early & receive a discharge). However, if a person buys out a plan too early (usually before making 36 monthly payments), they may have to repay 100% to unsecured creditors. If the person waits until they have made 36 consecutive payments, they only need to pay the unsecured creditors what they would have pd. them throughout the life of the plan (bk).
08-21-2006, 03:14 PM
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