Just to give a little background. Had my own business 4 years ago... business went bad, filed a Chap 13. Jump ahead 3 years... paid all payments on time. Began making mid six figure income while in the 13 at a regular job.
Decided I wanted to pay my plan off 3 months early... so I could refinance my house while rates are still reasonably low and just be done with the BK.
Per Trustee... faxed paystubs and last years tax returns so he could determine if I was financially sound enough to pay off early... making aprox 4 times what I made when I filed my 13... so I knew it was no problem... can you guess what happened?
Yep... he modified my plan by extending it 22 months and quadrupled the amount I was paying (wants over 2 grand a month). Keep in mind... I had 3 months left to pay on my original plan.
Short of it... when you finally crawl out of that dark hole and get on your feet... do not let the Trustee know you are doing better... they will want more. And never request an audit to pay off the balance of your plan.
Sincerely,
A Soon To Be Dismissed BKer
The Bankruptcy Site Forum » Archived Forums
Word to the wise on paying 13 off early
(2 posts)-
Posted 3 years ago #
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Holy Cow! I think I would have converted to Chapter 7 just to piss some people off!
That's over $44,000 more your paying back! What if your new salary takes a hit and you become 'gulp' poor again? You'd still be obligated for $44,000! That's bs! The Trustee is getting rich off all this.
Thanks for the 'heads-up!'Posted 3 years ago #
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