Total Bankruptcy

You may have heard people mention that they'd entered into a Chapter 13 plan and "paid it off" early. Getting out of bankruptcy early sounds great, but it may require more than simply paying the amount included in your original plan over a shorter period of time. That's because many Chapter 13 plans are not "100% plans". That means that in many Chapter 13 cases, unsecured creditors settle for a percentage of what is actually owed to them. If a debtor in a 100% plan "pays off" the bankruptcy early, then those creditors typically receive 100% payment and there is generally no reason the case can't be finalized early.

In many cases, however, the unsecured creditors have been promised only a portion of what was owed to them. If a debtor has entered into a plan that provides for payment of only a portion of outstanding debts, the debtor generally can't pay just that portion early and accelerate the case--instead, 100% payment would usually be required to terminate the case prematurely.

I've been in a Chpt. 13 since Sept. '03. I would like to refi my house in Sept. '06, should I have any problems?

I am 1 1/2 years into a 3 year Chapt 13 payment plan. (Not a 100% payoff) If I sell my house, does the court automatically get notified and take my equity? How much of the equity would they get?

i have 20 payments left of my chapter 13 out of 60 .Is it a bad thing to pay it off early.

How much of the equity would they get?