QUESTION
Can you file a modification for payment if the last secured creditor is satisfied and get a discharge?
Asked on Apr 29th, 2014 on Bankruptcy - Colorado
More details to this question:
My lawyer made a mistake in calculating my payments in a modification, and the total included quite a bit that was not even originally expected to be paid and had a payment above my calculated available income. I pointed it out repeatedly but was told I'm wrong. Now I am almost paid out and low and behold the math shows I have 3 payments left after the secured creditors are satisfied. Is it possible to file a modification now that the last secured creditor is satisfied and get a discharge?
4 ANSWERS
Deborah F. Bowinski
It is unlikely. A chapter 13 case required you to pay what you are able to pay for the "commitment" period. Unless you were an under-the median debtor whose plan lasted longer than 36 months I imagine it will be difficult to request such a modification and have it approved. If you have a lawyer you must address your questions to him or her. You are always free to seek a second opinion, but an online forum such as this one is not the place to look for specific, personalized legal advice.
Answered on May 02nd, 2014 at 6:32 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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As long as the unsecured creditors get the percentage that was promised to them.
Answered on May 02nd, 2014 at 6:32 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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Once the plan is paid in full, the Trustee is not going to just keep accruing your money. The Trustee will indicate the plan is paid in full, file the related documents, and move the case to discharge and closure.
Answered on May 02nd, 2014 at 6:32 PM
Probate Attorney serving Washington, DC
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Apex Legal Services, PLLC
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Sounds like a Chapter 13 Bankruptcy. If you have completed your plan and completed any other requirements you will get your discharge. The Trustee is a mathematical wizard. The trustee can add on or subtract whatever is due the creditors and make adjustments without a big fuss. If you owe money more, the trustee will let you know what you owe and will require payment before a discharge. This sounds minor. A formal modification may not be necessary.
Answered on May 02nd, 2014 at 6:32 PM