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Early payoff of low percentage Chapter 13 Plan
It depends on the Trustee. As long as 36 months have gone by, Nancy Curry is fine with an early payoff. However, Elizabeth Rojas' view is that the plan is not completed. So you will need to bring a motion to decrease plan length. Make sure you do it before she brings one of her generic motions to increase percentage. Don't know what Cathy Dockery's position on this issue is.
Melissa Besecker
Tyson wrote:
Hello,
Does anybody know what the Chapter 13 Trustee will do if a debtor in
a low-percentage Chapter 13 plan tries to pay off the plan early,
(e.g., a 60 month plan and wants to pay it off in 36 months because
he can get a loan from his parents)?
Will this raise any "redflags/issues with the Chapter 13 Trustee?
Will the Trustee force the debtor to pay a higher percentage to the
unsecured creditors than orignally provided for in the plan?
thank you!!
Ty Takeuchi
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It depends on the Trustee. As long as 36 months have gone by, Nancy Curry is fine with an early payoff. However, Elizabeth Rojas' view is that the plan is not completed. So you will need to bring a motion to decrease plan length. Make sure you do it before she brings one of her generic motions to increase percentage. Don't know what Cathy Dockery's position on this issue is.
Melissa BeseckerTyson <lurpnlaw160@hotmail.com> wrote:
Hello,Does anybody know what the Chapter 13 Trustee will do if a debtor in a low-percentage Chapter 13 plan tries to pay off the plan early, (e.g., a 60 month plan and wants to pay it off in 36 months because he can get a loan from his parents)?Will this raise any "redflags/issues with the Chapter 13 Trustee?Will the Trustee force the debtor to pay a higher percentage to the unsecured creditors than orignally provided for in the plan?thank you!!Ty TakeuchiDo you Yahoo!?
Yahoo! Small Business $15K Web Design Giveaway - Enter today
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With Nancy Curry, it's no problem.Just send in a check for the balance.
Otherwise, it's possible but not automatic. You will need a hearing with
notice to all. I always call ahead and check. CF
To:
Sent: Friday, April 02, 2004 7:33 AM
Subject: [cdcbaa] Early payoff of low percentage Chapter 13 Plan
> Hello,
>
> Does anybody know what the Chapter 13 Trustee will do if a debtor in
> a low-percentage Chapter 13 plan tries to pay off the plan early,
> (e.g., a 60 month plan and wants to pay it off in 36 months because
> he can get a loan from his parents)?
>
> Will this raise any "redflags/issues with the Chapter 13 Trustee?
>
> Will the Trustee force the debtor to pay a higher percentage to the
> unsecured creditors than orignally provided for in the plan?
>
> thank you!!
>
> Ty Takeuchi
>
>
>
>
>
> Yahoo! Groups Links
>
>
>
>
>
>
The post was migrated from Yahoo.
My understanding is that the Chapter 13 Trustee will not allow an
early payoff of less than 100% during the first 36 months. After 36
months, you can pay off the remaining balance based on the original
percentage in the confirmed plan. Thus, no increase in percentage
but only if you do the payoff after 36 months.
Ray Bulaon
> Hello,
>
> Does anybody know what the Chapter 13 Trustee will do if a debtor
in
> a low-percentage Chapter 13 plan tries to pay off the plan early,
> (e.g., a 60 month plan and wants to pay it off in 36 months because
> he can get a loan from his parents)?
>
> Will this raise any "redflags/issues with the Chapter 13 Trustee?
>
> Will the Trustee force the debtor to pay a higher percentage to the
> unsecured creditors than orignally provided for in the plan?
>
> thank you!!
>
> Ty Takeuchi
The post was migrated from Yahoo.
Ty ~
My experience is that the Trustee will not have an issue about this if the debtor is at or past month 36 of the plan. You could do a motion to modify the plan to shorten the length combined with a companion motion to allow the debtor to borrow the money from his parents (such a motion would not be required, however if the "loan" from the parents was a gift.) Knowing which Trustee it is would be helpful.
Brian Wirsching
----- Original Message -----
To: cdcbaa@yahoogroups.com
Sent: Friday, April 02, 2004 7:33 AM
Subject: [cdcbaa] Early payoff of low percentage Chapter 13 Plan
Hello,
Does anybody know what the Chapter 13 Trustee will do if a debtor in
a low-percentage Chapter 13 plan tries to pay off the plan early,
(e.g., a 60 month plan and wants to pay it off in 36 months because
he can get a loan from his parents)?
Will this raise any "redflags/issues with the Chapter 13 Trustee?
Will the Trustee force the debtor to pay a higher percentage to the
unsecured creditors than orignally provided for in the plan?
thank you!!
Ty Takeuchi
Yahoo! Groups Links
a.. To visit your group on the web, go to:
http://groups.yahoo.com/group/cdcbaa/
b.. To unsubscribe from this group, send an email to:
cdcbaa-unsubscribe@yahoogroups.com
c.. Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
Ty ~
My experience is that the Trustee will not have an
issue about this if the debtor is at or past month 36 of the plan. You
could do a motion to modify the plan to shorten the length combined with acompanion motion to allow the debtor to borrow the money from his parents (such
a motion would not be required, however if the "loan" from the parents was a
gift.) Knowing which Trustee it is would be helpful.
Brian Wirsching
----- Original Message -----
From:
Tyson
To: cdcbaa@yahoogroups.com
Sent: Friday, April 02, 2004 7:33AM
Subject: [cdcbaa] Early payoff of low
percentage Chapter 13 Plan
Hello,Does anybody know what the Chapter 13 Trustee
will do if a debtor in a low-percentage Chapter 13 plan tries to pay off
the plan early, (e.g., a 60 month plan and wants to pay it off in 36 months because he can get a loan from his parents)?Will this raise
any "redflags/issues with the Chapter 13 Trustee?Will the Trustee force the debtor to pay a higher percentage to the unsecured creditors
than orignally provided for in the plan?thank you!!Ty
Takeuchi
The post was migrated from Yahoo.
charset="ISO-8859-1"
My understanding is that the Chapter 13 Trustee will not allow an early
payoff of less than 100% during the first 36 months. After 36 months, you
can pay off the remaining balance based on the original percentage in the
confirmed plan. Thus, no increase in percentage but only if you do the
payoff after 36 months.
Ray Bulaon
Sent: Friday, April 02, 2004 7:34 AM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Early payoff of low percentage Chapter 13 Plan
Hello,
Does anybody know what the Chapter 13 Trustee will do if a debtor in
a low-percentage Chapter 13 plan tries to pay off the plan early,
(e.g., a 60 month plan and wants to pay it off in 36 months because
he can get a loan from his parents)?
Will this raise any "redflags/issues with the Chapter 13 Trustee?
Will the Trustee force the debtor to pay a higher percentage to the
unsecured creditors than orignally provided for in the plan?
thank you!!
Ty Takeuchi
_____
Yahoo! Groups Links
* To visit your group on the web, go to:
http://groups.yahoo.com/group/cdcbaa/
* To unsubscribe from this group, send an email to:
cdcbaa-unsubscribe@yahoogroups.com
The post was migrated from Yahoo.
Hello,
Does anybody know what the Chapter 13 Trustee will do if a debtor in
a low-percentage Chapter 13 plan tries to pay off the plan early,
(e.g., a 60 month plan and wants to pay it off in 36 months because
he can get a loan from his parents)?
Will this raise any "redflags/issues with the Chapter 13 Trustee?
Will the Trustee force the debtor to pay a higher percentage to the
unsecured creditors than orignally provided for in the plan?
thank you!!
Ty Takeuchi
The post was migrated from Yahoo.