Can I pay Chapter 13 payments ahead or even pay all of them at once? 15 Answers as of October 16, 2014

We recently filed and had our hearing for our Chapter 13 bankruptcy. My in laws want to pay our payments up at once for us to help us out, but I don't know if we can do that or not. We have 3 years of 124 months. We have made two payments already, so they want to pay the remaining $4216 at once. Can we do this or do we need to pay the payments all the way out over the 3 years? Thanks.

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The bankruptcy code says that a Ch 13 Plan must be no shorter than 36 months nor longer than 60 months. The Plan has been confirmed by the court at 36 months at a certain monthly payment amount. You must adhere to the plan if you are going to get a discharge.
Answer Applies to: Minnesota
Replied: 10/16/2014
Stephens Gourley & Bywater | David A. Stephens
Unless your plan is a 100% plan, you cannot pay it off before 36 months.
Answer Applies to: Nevada
Replied: 10/15/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
You generally have to file a motion for them to accept full payment and to close your case early.
Answer Applies to: New York
Replied: 10/15/2014
Idaho Bankruptcy Law | Paul Ross
It depends on whether you have a 100% plan or not. If it is not, I would not advise it. The Trustee will review where the money came from and will feel you likely still have to ability to pay more if it is not a 100% plan. Visit with your attorney.
Answer Applies to: Idaho
Replied: 10/14/2014
Cohen & Kendziorra, P.A.
Cohen & Kendziorra, P.A. | Robert S. Cohen
You can pay it off at any time.
Answer Applies to: Florida
Replied: 10/14/2014
    Law Offices of Daniel J Winter
    Law Offices of Daniel J Winter | Daniel J Winter
    Most of the time, you cannot pay off your Chapter 13 early. Call your attorney before doing anything. And, if you don't have an experienced attorney, get one.
    Answer Applies to: Illinois
    Replied: 10/14/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    The trustees in every district have different requirements but most say that if you pay the full amount in advance, you must also continue to make monthly payments for the term of your plan unless the lump sum pays off all of the claims filed.
    Answer Applies to: Nevada
    Replied: 10/14/2014
    Ronald K. Nims LLC | Ronald K. Nims
    Having a relative make payments on the plan can be considered additional property subject to the plan. The court could take the lump sum gift of your inlaws and distribute it to your creditors and still require that you make the 36 months of payments. Of course, the court can only take funds (both your inlaws and yours) until your creditors (and the various costs of the plan) are paid 100%. So if your plan provides for 100% payment of creditors (or close to it) - then it would make sense to accept the gift of a lump sum payment and be done with it. But if your plan pays only a part of the creditors' claims, then it would just be wasting your inlaws money.
    Answer Applies to: Ohio
    Replied: 10/14/2014
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    This is a tricky question. It depends on where the money is coming from. For example, if it is because you are earning more money, the Trustee will normally want you to increase your payments for the duration of your Chapter 13 (i.e., your creditors will receive more money). However, if it is a one time source, a gift in this case, some of the Trustees will allow an early pay off. Ask your attorney, or call the Chapter 13 Trustee's office and ask them. Good luck!
    Answer Applies to: Colorado
    Replied: 10/14/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    It has to go the full 36 months. That is what the code requires.
    Answer Applies to: California
    Replied: 10/14/2014
    D.J. Rausa, Attorney at Law | D.J. Rausa
    You do not want to do this. If your ACP is 36 months, paying a large payment in one month, does not excuse all the other payments. If your family wishes to assist you, then put all the money in the bank, draw interest, and make your normal monthly payment.
    Answer Applies to: California
    Replied: 10/14/2014
    Steele, George, Schofield & Ramos, LLP
    Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
    It depends. In the Northern District of California, if you want to pay off your plan early, you must pay 100% of your debt. So, if your plan pays 100%, you can pay it off early. However, if your plan pays less than 100%, you must increase the amount paid so that all of your debt is paid in full. You should see an attorney before attempting to go down this road.
    Answer Applies to: California
    Replied: 10/14/2014
    The Law Offices of Kristy Qiu
    The Law Offices of Kristy Qiu | Mengjun Qiu
    As long as you can prove that the fund is coming from either exempt sources or family support, you should be able to pay off the chapter 13 early. However, every state varies therefore you need to either speak with the trustee or your attorney.
    Answer Applies to: Florida
    Replied: 10/14/2014
    The Law Offices of Deborah Ann Stencel | Deborah A. Stencel
    It entirely depends on your plan. Ask your lawyer if this is a good idea. In general, unless you are in a 100% plan, pre-payment will cost you money.
    Answer Applies to: Wisconsin
    Replied: 10/14/2014
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    No, you have to pay all of your disposable income to the trustee. If they pay it for you, you just have to pay more disposable income. So no you cannot pay it ahead of time or have your in-laws pay it for you.
    Answer Applies to: Michigan
    Replied: 10/14/2014
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