Should I refinance BK payoff

[mrem1080]

What is the name of your state? South Carolina
I'm in the process of refinancing my home. Will it be favorable for me to include BK payoff of $4740 with refinance. I have till March 2006 to pay it off. I would like to get my discharge but want to do the right thing. I would appreciate any help in what way I should go.

[bigun]

You need your trustees permission to incur any new debt while in your chapter 13 plan. The problem with a refi is, the trustee may demand that you repay any unsecured creditors at a higher percentage than the orginal plan. Talk with your lawyer and see if that payoff figure may not be higher than $4700 if you do a cashout refi.

[mrem1080]

I did check with the trustee and his office said I could refinance but they didn't say anything about extra funds. They told me to contact my lawyer to submit paperwork. I'll check on what you said. Thanks for the info Biguns

[mrem1080]

I checked with my attorney and my trustee's ofc. I will only have to pay what I owe when I refinance. There are no additional charges. Your paying the original amount that was set at the onset of bk even if you pay it off early.

[dosumi]

CA

Am I missing something here. I have been told over and over that you can not pay off a chapter 13 early. That it will void the BK and your creators can go after any monies you originally owed them. Or does that amount pay off the total 100% of the amount of debt you owed when you filed. (not the total sum of the remaining payments).
If you don't mind can you give a few more details.
What % of your debt were you to pay off in your BK?
How many months was your plan for 36 or 60?
If you submit paperwork to pay off early, can creditors object or is it totally up to the Trustee?
Did the Trustee give you something in writing that it was OK to pay off early, or just a clerk in the office verbal OK?

I'm not trying to be negative, it just goes against what I've been told. And if my case works out to be similar it would be good to know.
Thanks

[mrem1080]

I went into chapter 13 Oct. 2001. My final payment was scheduled for about March 2006. I've spoken with my attorney and trustee's office and both said I could refinance including BK pay off as soon as my attorney submits the paperwork for me. The trustee's office told me I would pay whatever I owe according to BK plan filed in 2001.

[dosumi]

Could you tell me what the percentage of your debts your are paying off in your BK 13.
Mine is very small, if approved it will be less then 10%


Thanks

[mrem1080]

I have a specified base amount I have to pay. My unsecured creditors are to be paid a minimum of 1.00% of their claims. My base amount is a little less then 1/4 of my total debt.

[dosumi]

We signed our paperwork to file BK13 yesterday, now just have to wait for the 341 and to see if it will be approved.
The payoff to unsecured creditors will be about the same as yours.

I asked the Lawyer if I could payoff the BK early. She said the amount of time in our case 36 months is the amount of time we would need to pay off our secured creditors and is the minimum time allowed. If in our budget we can pay more, that extra money would go to the unsecured creditors.
If we came up with money to payoff the secured creditors, then the rest of the payments would go to the unsecured creditors.
Unless we could payoff all the creditors, secured and unsecured there was no way to end it early.
So I assume there must be something different in your case.

Thanks for the info
And good luck

[mrem1080]

I've been in BK 13 over 36 month's. I started making payments since Nov. 2001. My plan was for almost 5 yrs. Trustee said I could refinance including BK payoff as long as plan did not put me in financial trouble. Said my attorney would have to submit the paperwork to his office. I'm looking at a couple of plans that should save me betweem $500-$800 a month. Hopefully I'll have it ready by next week.