Chapter 13 Questions

[vietnamvet]

What is the name of your state?What is the name of your state? florida
we filed chapter 13 last october prior to the change in the laws and went to the 341 meeting. (we filed 13 to protect some assets) we're now waiting for the confirmation meeting in april. we are planning to move to georgia sometime this summer and buy a house through a lease purchase plan. my questions are can i pay off all of the trustee payments (it's a 3 year plan) within the next several months. i just received a va settlement (retroactive payment) that will allow me to payoff all of the trustee payments and enter into the lease option in georgia. i'm wondering if this will be ok with the trustee? at the 341 meeting i submitted a letter from the va stating that i would be receiving this money sometime in the future and the trustee said that any va money was exempt.
thank you for your advice,

vietnamvet

 

[wayne-o]

that depends....will these payments pay your unsecured creditors at 100% or will the payments just satisfy a lesser percentage of you unsecured debts.

 

[vietnamvet]

the lesser percentage will be paid in full. also the secured debt ( a car ) will be paid .

 

[wayne-o]

when you pay less than 100% your plan has a base and a minimum of 36 months. The way mine was set up, I had to pay my base or 36 months, whichever was longer. So I could theoretically pay more than my base in 36 months and then be finished or if I dont reach my base in the 36 months my bankruptcy will go longer. You could theoretically withdraw your bankruptcy at any time, but that means the creditors would have the freedom to come after you for 100% of debts owed.

 

[vietnamvet]

i'm sorry, but i'm a little confused. let me try to make my plan a little clearer. originally, my debt was about 27k and it was reduced by my lawyer by objecting to some of the creditors claims and eliminating the creditors that didn't show up, therefor reducing the debt to about 30% (8k). my payments are for that 8k over a 36 month period. what i want to do is just pay off that 8k and wait to be discharged. will that work so we can start rebuilding our credit and put this bk behind us?

 

[Ladynred]

The point is, you CAN'T do an early payoff UNLESS you're paying ALL creditors back at 100%. If you're paying anything less, you MUST stick it out for the full 3 years. If you dismiss your case, then all bets are off and you're back to owing the full 27K. Bottom line - its 3 years or nothing.

 

[vietnamvet]

thank you ladynred

vietnamvet