Can I prepay my Chapter 13 payments to pay it off quicker?
LostInDallas214 asked:
I currently am in Chapter 13 (as of March 2007). I have had my meeting with creditors, as well as set up a payment plan. I was wondering a few things:
I currently am in Chapter 13 (as of March 2007). I have had my meeting with creditors, as well as set up a payment plan. I was wondering a few things:
1. I pay 90.00/mth to my trustee for 36 months. I would like to pay it all off. Could I pay early without a penalty?
2. I also want to know if I could change it from a Ch. 13 to a Ch. 7 liquidation, and if so, what can I expect?
3. If I let my Chapter 13 get dismissed, could I possibly just go through Debt Relief and if so, will it still show up on my credit?
Any help? Tips? What is my best option?
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Tags: Chapter 13, Liquidation, Mth
February 21st, 2009 at 9:56 pm
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I would not advice it. The trustee calculated that amount as the amount you could afford.
If all of a sudden you have more money to pay this off, they may reconsider the whole thing.
And yes, there are probably other things you could have done besides the Ch 13. Ch 7 says you have no money at all and since they already have determined you can afford $90 a month, that is unlikely to happen without a negative change in your situation.
You need to get more information from sources other than bankruptcy attorneys who have a vested interest. See below.
February 24th, 2009 at 8:01 am
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believe it or not you will be doing yourself a favor for just paying the 90 a month on time for 36 months..this shows the creditors you are able to pay..it boost yer credit rating..not the Ideal way to do it but it shows you can pay..if your 13 gets dismissed then kiss any credit goodbye and look for repo men to be knocking at the door…going 7 is even worse it never comes off your report your best bet is to pay the 90 a month for 36 months..In this way you will be proving that you can pay…