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Question

I have one year left on my Chapter 13 bankruptcy before discharge. I am a Louisiana resident. My siblings have generously offered to give me to money to pay this off right now. Is that possible without being asked to pay back 100% of all credit owed -- only paying the amount agreed upon at confirmation?

Submitted: 180 days and 13 hours ago.
Category: Legal
Value: $30
Status: CLOSED
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Louisiana

Already Tried:
I have done research on the internet with mixed results. I don't have much confidence in the attorney who handled my case, thus have not called him about this query.

Posted by Maverick 180 days and 13 hours ago.

Answer

 

Yes, you can pay only the agreed amount under the confirmation plan off early, but there's a right way and a wrong way to do it.

 

If you want to make an extra payment from time to time, that's fine. If you plan to make a large, lump sum payment, you should consult your attorney first.

 

The first question your attorney and the trustee will ask you is where the money is coming from to pay off the Chapter 13. If the money is coming from a loan (even a loan from a family member) you need to seek court approval of that borrowing first. The source of the funds is also important to determine whether the amount you proposed to pay to your creditors in the first place is still fair.

 

 

180 days and 13 hours ago.

Reply

There would be no loans involved whatsoever. My sis and brother owe me from past favors (living with me for years without paying rent, food, etc.) and they have agreed to GIVE me the money to now help me out. Would this explanation of the money and their sworn statements of the GIFT be acceptable to the court?

Accepted Answer

Yes. It should be fine.

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Expert: Maverick
Pos. Feedback: 98.0 %
Accepts: 
Answered: 5/26/2009

Attorney

10 + years experience in civil litigation, jury trials, and business law;

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