Q: What happens if I pay my chapter-13 bankruptcy a few months early?
My 60 payments are at $507ea making the entire amount $30,420. I have make 56 consecutive payments of $507; but this year in April my tax return exceeded $3k by $1427, so I had to mail in that payment of $1427 above what I was already paying; so to date I have paid in ($507x56)+$1427= $29,819, so my balance to pay would be $30,420-$29,819 = $601. So my august payment of $507 will bring it down to $94 for September and my bankruptcy last payment was supposed to be in November. Can I just pay $94 in September and stop making anymore payments? Or do I have to just keep paying $507 through to the end of November and hope that they refund me the difference?
A:
Why don't you phone the trustee's office and ask them, because--at the end of the day--it will be their decision. What you propose certainly makes sense and I would recommend it. But then, it is not my decision--nor is it yours!
Good Luck
d
A: Depends on your State and Jurisdiction. In New Jersey, once you pay off the Plan, the Trustee sends out a letter advising that the Plan payments are complete. I would suggest that you either contact your Counsel or the Chapter 13 Standing Trustee for your case
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