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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17248
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Hello, I am in chapter 13 in Pennsylvania. I am in a 60 month

Customer Question

Hello, I am in chapter 13 in Pennsylvania. I am in a 60 month 18% payback. I have a two part question. I am in my 55th. month and only owe $3000 and the my plan will be paid in full. Can I pay the $3000 to get out early? Also when I filed in 08 I was making $16hr. Now I am making just under $29. Should I just leave it alone and not try to pay it off so that the trustee does not make me pay more?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 4 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

It is not best to pay the bankruptcy early,

WALLSTREETESQ :

the trustee and your creditors may think you have extra money to pay them, and force you to pay the remaining payments, they may also bring a motion to Court asking for more money to finish the payment plan.

Customer : What happens after my an is paid in full I December? When they do an audit and see that I am making more money will they make me pay more and extend my payments/plan?
WALLSTREETESQ :

no, the income is based upon the date you filed your petition,

Customer : Ok so why would they make me pay more if I try to pay it off 5 months shy of my 60 months? I only owe $3000.
WALLSTREETESQ :

if your income was listed correctly on Schedule I as of the time of filing the case, you have no duty to amend your petition, even if your income increases.

WALLSTREETESQ :

they could think you have extra money, and may have you pay more into the plan,

Customer : Why does that mean that I have "no duty"?
WALLSTREETESQ :

the law does not require you to inform the trustee if you have a salary increase,

Customer : Could they extend my payments if I try to pay off the plan 5 months early?
WALLSTREETESQ :

it is possible,

WALLSTREETESQ :

I do not see any benefit, it is risky, after the plan payments 82% of your debts will be discharged,

WALLSTREETESQ :

they will not go over your finances,

WALLSTREETESQ :

If you have provided your yearly tax returns the trustee knows of the increase in wages,

WALLSTREETESQ :

so after your 60 months your plan would be over and the 82% will be dismissed.

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask.

WALLSTREETESQ :

If satisfied please provide us with positive feedback, thank you

Customer : Why do I get charged twice for this answer?? I got charged $23and then $34?????
Customer : I was never informed that I had to provide them with the yearly tax returns.... Was I supposed to?
WALLSTREETESQ :

You should look at your petition,

WALLSTREETESQ :

many times yearly tax returns and refunds were to be given to the trustee,

Customer : Where would it be on my petition?
WALLSTREETESQ :

in your chapter 13 plan,

WALLSTREETESQ :

If not written in your chapter 13 plan, you would not have to provide it.

WALLSTREETESQ :


If satisfied with our service please provide us with positive feedback, thank you







If you have any further questions please do not hesitate to ask.



Customer: replied 4 years ago.

Is the a specific page in my plan that would say either way? I can not find it and a lot of it is like reading a foreign language....

Expert:  WALLSTREETESQ replied 4 years ago.
The first page of the plan, typically would address tax returns, however if the trustee has never requested it, you should not worry, as they would have asked for it for the past few years.

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