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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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CAN I PAY OFF A CHAPTER 13 BANKRUPACY EARLY IN NEW YORK IF

Customer Question

CAN I PAY OFF A CHAPTER 13 BANKRUPACY EARLY IN NEW YORK IF I AM NOT PAYING FULL AMOUNT TO CREDITORS?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  dylatess replied 5 years ago.
Over 33 years, I have assisted my clients with debt problems having filed more than 32000 Chapter 7 and Chapter 13 Bankruptcy petitions. Maybe. Your plan was approved for so many monhs and to pay a certain amount. However, if you amend your plan to pay a lessser amount, and the plan is approved, you can pay it off sooner. Also, it does not matter what sttate you live in as Bk is a federal law and the same law applies to all states.


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Customer: replied 5 years ago.
MY PLAN IF FOR 60 MONTHS AT FIVE HUNDRED DOLLORS A MONTH.I AM NOT PAYING BACK ALL DEBT.I HAVE 20 MONTHS LEFT AND HAVE 10000 TO COVER THE NEXT 20 MONTHS.CAN I PAY EARLY?DO I HAVE TO PROVE WHERE MONEY CAME FROM?I HAVE READ THAT DIFFERENT STATES AND TRUSTEES HAVE DIFFERNET APPROACHES.I AM IN NEW YORK
Expert:  dylatess replied 5 years ago.
ok that clarifies things. The court does not care where you get the money from so long as you pay the plan amount as approved. So yes you can pay it off sooner if you can. Great question. Best regards and I am glad  to help.  Please be so kind as to click the GREEN accept button as I do not get paid for my assistance unless you accept.   A bonus and and positive feedback are also appreciated.  An ACCEPT also assures that I can assist you again.  I wish you the best in the future.  Thanks.
Customer: replied 5 years ago.
SO IF I CUT THE CHECK FOR 10000 WILL I HAVE TO CONTINUE TO PAY THE 500 TO THE TRUSTEE UNTIL COURT GRANTS DISCHARGE THEN HAVE MY OVER PAYMENTS REFUNDED?
Expert:  dylatess replied 5 years ago.
you need to call the trustee to ask for the payoff for the next thirty days and that is the amount you need to send to compete the plan. And by doing so you willl also be saving the administrative fee that you are now paying the chapter 13 trustee. Best regards and I am glad  to help.  Please be so kind as to click the GREEN accept button as I do not get paid for my assistance unless you accept.   A bonus and and positive feedback are also appreciated.  An ACCEPT also assures that I can assist you again.  I wish you the best in the future.  Thanks.
Customer: replied 5 years ago.
i am on a 31% partial repayment my lawyer today told me i cant do this.is he wrong or not wanting to petion judge?i would be able to get the 500 a month for twenty months from family.can i do?
Expert:  dylatess replied 5 years ago.
You can call the trustee directly and get the pay off and then compare that amount with what your attorney has told you.

Because I help people like you here, for a living---this is not a hobby for me---I sincerely appreciate your abiding by the honor system with regard to Accepting answers, by Clicking your ACCEPT button now. Otherwise I do not get paid anything at all. BONUS and POSITIVE FEEDBACK are also appreciated An Accept also assures that I can assist you again. I wish you the best in your future.

Customer: replied 5 years ago.
i did call the trustee and they said my attorny must contact them.what should i do?how bout answering the question instead.can you do this borrow to pay off the remainig 20 month payment of a 31% partial payment plan when in 40th of plan?
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
If the balance of your plan is $10,000, whether or not you would be able to pre-pay the $10,000 and not have to pay anything else, depends on whether there is an available exemption for the $10,000. This is because unsecured creditors in a less-than-100% plan are entitled to receive at least as much as they would receive if a Chapter 7 was filed instead. Bankruptcy Stat. 1325(a)(4).
This would not be a concern if the money were borrowed. However, if the money is going to be borrowed, it would be a good idea to get the trustee's approval first.

I think this is what you wanted to know. If not, please let me know.
Thank you!

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