QUESTION
If my balance is zero with a chapter 13 bankruptcy, do I still have to continue payments for the full 5 years?
Asked on Mar 25th, 2013 on Bankruptcy - Florida
More details to this question:
I have a chapter 13 bankruptcy that takes payments and my tax refund. It was for five years. It has been about two and a half years but because they took my refund, my balance is at zero. Will this bankruptcy be discharged early or will they continue to take payments from my checks and my tax refund? If they still continue to take the payments, where will the money go?
6 ANSWERS
Bankruptcy Attorney serving Dallas, TX
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Polk & Associates
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If your Chapter 13 plan was supposed to pay 100% to creditors and it already has paid out 100% of all your debts, you probably can get out early and the extra money would be returned to you. If your Chapter 13 plan was supposed to pay less than 100% to creditors - that is, you pay as much as you can afford to pay for 5 years and then the court will discharge whatever debt is left over - then probably you have to keep paying as much as you can afford for those 5 years so that the percentage paid to your creditors gets closer to 100%.
Answered on Mar 26th, 2013 at 12:44 AM
Congratulations! It sounds like you completed your Chapter 13. Only question is "do you want your discharge" or do you want to save your discharge for another time? You can dismiss your Chapter 13 if you want to save your discharge, wait until 5 years have elapsed if you want the continued protection of the bankruptcy court, or ask for an early discharge. Which way to go? Alas, I don't know you well enough to say.
Answered on Mar 26th, 2013 at 12:36 AM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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As a general rule, if all of the allowed claims in your case are paid in full, then you should not have to make any further payments to the trustee and you should receive your discharge. You should contact the trustee's office or your attorney for details.
Answered on Mar 26th, 2013 at 12:31 AM
Deborah F. Bowinski
If you are two years into a chapter 13 plan then I assume you have an attorney representing you in your case. Your questions should be addresses to your lawyer since he or she is the only one with enough information about your situation to adequately answer them.
Answered on Mar 26th, 2013 at 12:07 AM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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There is not enough information to properly respond. Check with your attorney. I am only guessing that the tax refund COULD be going toward your unsecured creditors and unless or until they get paid in full, you MAY need to continue to make payments, but I really have more questions than answers.
Answered on Mar 25th, 2013 at 10:32 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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I am not sure what you mean by "the balance is zero". Please talk to your bankruptcy attorney. If you do not have an attorney then the trustee may be willing to answer your questions, but they are not allowed to give legal advice.
Answered on Mar 25th, 2013 at 10:32 PM