QUESTION
We filed a Chapter 13 and have 39 months left in our plan.I would like to know are we allowed to send payments to our secured creditors?
Asked on Feb 09th, 2014 on Bankruptcy - Louisiana
More details to this question:
We really got into a bad spot in 2012 and things are getting better for us and we would like to send whatever we have extra if anything to our car finance company.Our bk is at a below median plan and we could pay out after 36 months but we don't have that kind of money but would like to have amount paid and if we have extra send that as we see as that might help us pay out earlier...Thanks in advance for your help...
1 ANSWER
Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
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3 Awards
The answer depends in part on what percentage your plan is paying to unsecured creditors. If it is 100%, then there's probably no harm in you paying extra to your secured creditors now. But technically you're supposed to be paying all of your disposable income to the Chapter 13 Trustee, so if you have a surplus available to pay extra to your secured creditors, that is a potential issue.
It also depends on how courts and trustees in your jurisdiction handle these things, so you really need to discuss this with a bankruptcy attorney in your area.
Answered on Feb 09th, 2014 at 3:30 PM