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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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im in my 40th month of a chapter 13 31 percent

Customer Question

im in my 40th month of a chapter 13 31 percent payment is 500 a month for 60 monthes.i was just married and my wife revieved about 8000 in gifts and i have a new york state pension.can i borrow agaist pension and use wifes money to pay off eary?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.
Welcome to JustAnswer,

Thank you for your question. If my answer is not clear to you, please ask me for clarification by using the reply button.

Yes. You may borrow against your pension and use your wife's money to pay off the chapter 13 early since you are in the 40th month of your plan.You can contact the trustee for the payoff number.

Here is how it works. Any additional disposable income prior to completing 36 months of the plan must be paid into the plan unless it is a 100% plan. Since you are at 40 months, it appears that you would be able to arrange an early payoff

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Customer: replied 5 years ago.
would my lawyer have to petion the court?or can he just contact trustee?how long would this take to get the discharge and court petion?im in new york
Expert:  Ellen replied 5 years ago.
Your attorney can simply contact the trustee for the payoff number. After you pay off the plan, the trustee would issue your discharge. The process would take approximately 60 days
Customer: replied 5 years ago.

do they review your records after payment or just grant discharge?

Expert:  Ellen replied 5 years ago.
typically just grant the discharge
Customer: replied 5 years ago.


Expert:  Ellen replied 5 years ago.
Usually the trustee would require an explanation of the source of the money.

I hope that it helps to know this information

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Customer: replied 5 years ago.

a verbal confrormation or documents and a paper trail of where money came from?

Expert:  Ellen replied 5 years ago.
It will depend upon the trustee. If the trustee suspects that you received funds prior to having completed the 36 months of your plan, the trustee has the right to require documentation
Customer: replied 5 years ago.
im in the 40 th month my new wife and mom going to give me money from mom and wedding that enough for trustee?
Expert:  Ellen replied 5 years ago.
typically it would be sufficient
Customer: replied 5 years ago.

we recieved the wedding money in the 38th month of plan but put in account under only wifes that ok?

Expert:  Ellen replied 5 years ago.
That should be fine since the you had already completed the 36 months
Customer: replied 5 years ago.
so do i need to ask trustee first or can i just send the amount i would of payed over 20 months?
Expert:  Ellen replied 5 years ago.
You can contact the trustee for the payoff number.