Expert: Mark J. Markus- California Bankruptcy Attorney - 7/9/2005

Question
Thank you for answering me so quickly -  If I just go ahead and pay the morgage company directly and simply move to dismiss (since there is really nothing to discharge anyway, no other debts or unsecured debt at all) is there really anything to keep me from not having to pay the trustee anything by going around him like that?  Am I missing something, some practical consideration?  Thanks!

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Followup To
Question -
Mr. Markus:

I live in Northern California and have been making payments for a year on a chapter 13.  I filed the case myself.  Now I have come into some money and would like to pay off the entire amount of the plan that I had been paying.  CAn I just pay the mortgage company ( the only creditor) and have the case dismissed, or do I have to have my plan modified and pay off the mortgage through the plan in one lump sum?  IF the latter is required, do I have to pay the chapter 13 trustee the whole 10 percent that he would have gotten if I paid it off over the next few years in the remaining installments?

Thank you for your help.
Answer -
You should be able to do it either way.  The Trustee will likely be entitled to 10% of whatever disbursements are made if you pay it through the Chapter 13.  It's usually better to do it that way, since you get the discharge, but you should really sit down with an attorney up there and make sure there aren't any local procedures or practice that make things different.

Answer
The question you are asking really entails giving legal advice which I cannot do without reviewing your entire case and knowing the local rules and procedures in your area.  That is why I recommended that you speak to an attorney up there.  I think technically you're supposed to dismiss first, then you can pay off your creditors, but of course you risk foreclosure (assuming it was imminent before you filed) in that case.  In reality I doubt there's any problem with doing it the way you stated, particularly if you pay off all your creditors, but I don't want to tell you that there won't be any repercussions.