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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Hello, I have a 4-year-period payment plan under personal

Resolved Question:

I have a 4-year-period payment plan under personal Chapter 11 with the case closed in January. Can a friend of mine pay off my balance earlier to be discharged? If yes - what is the procedure? Also can I sell my house with the equity in it roght after discharge? Thank you.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.
Hi JACustomer,
1) Yes - you can have a friend pay off your balance early, which will allow you to receive a discharge earlier than the 4 years.
2) You can sell your house as soon as your Bankruptcy case is closed, because that is when the automatic stay ceases to exist. Bankruptcy Stat. 362(c)(2)(A).

I think this is what you wanted to know. If not, please let me know.
Thank you!
Customer: replied 6 years ago.
what is the procedure of paying it of? Do we go court again. Aslo you mean when the case is discharged not closed? It is different, right?
Expert:  cfortunato replied 6 years ago.

If you want to pay off your plan early, you or your attorney have to contact your Bankruptcy trustee. You do not have to go to court for this.

For most Bankruptcy cases, the close occurs at the same time - or shortly after - the discharge. However, these are 2 separate events, and you will be notified by mail of each one. The automatic stay is affected by the close, not the discharge.

Customer: replied 6 years ago.
thank you. so if we sell the house after the discharge and have profit, it doesn't go the bancrupcy case? thank you
Expert:  cfortunato replied 6 years ago.
Yes - if you sell the house after the close, you can keep the profit from the sale.
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