QUESTION

Is there a way for an early discharge?

Asked on Aug 08th, 2016 on Bankruptcy - Nevada
More details to this question:
I have paid 48 out of 60 months. I live in a dangerous neighborhood. I want to get married and move forward with my life. If my fiancรฉ gives me the money or loans, canโ€™t I pay off my payment plan early? I want to sell my home that has maybe 5x - 10x equity and buy another home, get married and move forward. Also Iโ€™m thinking it would be better to end in the chapter 13 vs converting to a 7.
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7 ANSWERS

Commercial & Bankruptcy Law Attorney serving Powell, OH at Ronald K. Nims
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Generally, you can only pay off your Chapter 13 plan early if you're going to pay 100% of the unsecured creditors claims. This usually involves much higher amounts than simply finishing the plan. When considering converting from a Chapter 13 to a Chapter 7, the issue is why you filed a Chapter 13 instead of a Chapter 7 originally and is that issue still valid? For example, if you filed a Chapter 13 because your income was over the Chapter 7 limit, you can't convert to a Chapter 7 now - you're not eligible.
Answered on Sep 08th, 2016 at 6:13 PM

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Bankruptcy Attorney serving Myrtle Beach, SC at Law Office of Margaret L. Evans, PC
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Yes, provided, however, the unsecured creditors get paid out at 100%.
Answered on Sep 07th, 2016 at 6:31 PM

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At one time some federal districts allowed you to make a lump-sum early payoff of a Ch. 13. I believe that most or all federal districts now prohibit this practice-reasoning that the debtor is supposed to pay ALL his/her/their disposable income into the Plan for 60 months. Retaining an experienced BR lawyer in your locality is likely worth the investment. There are some fairly complicated techniques that in some cases may permit you to accomplish the same result, but you will need to work with a resourceful lawyer.
Answered on Sep 07th, 2016 at 6:31 PM

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Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
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Unless you were originally eligible for a 3 year plan (by being below median income) or unless your plan pays off 100% of the claims filed in your case, trying to pay off your case early will just result in you having to pay more to your chapter 13 and will not get you out earlier.
Answered on Sep 06th, 2016 at 5:47 PM

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Landlord & Tenant Attorney serving Thibodaux, LA at The Louque Law Firm, L.L.C.
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That depends on whether you are an above the means debtor or below the means debtor and whether you have complied with the other provisions of your plan. In most cases, unless your "early pay off" is a 100% pay out to unsecured creditors, you can sell your home, give the trustee all the equity (you would actually be required to do this), and the trustee will still expect plan payments unless the sale of the home pays off everything. This is a question for your attorney to see what is best but in some jurisdictions, sale of property, income tax refunds, etc are just extra money to be paid to your creditors unless they are already receiving 100% of their claim, not 100% of what you proposed to pay them, but 100% of what you would have owed had you never filed bankruptcy.
Answered on Sep 06th, 2016 at 12:19 PM

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These kinds of questions can not be answered in a forum like this. It is like sending an email to a doctor you have never met, with a list of symptoms asking the doctor if you need to be concerned. Meet with an experienced BK lawyer. Any lawyer worth their salt will charge you a minimum of one hour (maybe 90 to 120 minutes) of their time to review your entire file and discuss options with you. Good luck!
Answered on Sep 06th, 2016 at 12:18 PM

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Bankruptcy Attorney serving Las Vegas, NV
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You may complete your plan early, and you may convert from a 13 to a 7. However, both options would require in depth review of your case facts. I recommend you contact a qualified attorney who can review these facts and give you competent advice.
Answered on Sep 05th, 2016 at 6:09 PM

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