Can I pay off a Chapter 13 bankruptcy early? 5 Answers as of September 29, 2010

It has not been three years since I filed for Chapter 13 bankruptcy. I am thinking about refinancing my home in order to pay off the Chapter 13 requirements. Is it possible for someone to pay off their Chapter 13 bankruptcy early like this?

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Law Office of Barbara Seeley Curtis
Law Office of Barbara Seeley Curtis | Barbara Curtis
Yes it is. The usual way is refinancing.
Barbara Curtis
Answer Applies to: Florida
Replied: 9/29/2010
The Law Offices of Robert L. Driessen
The Law Offices of Robert L. Driessen | Robert L. Driessen
Depending upon your chapter 13 plan this may not be to your advantage. If you had an attorney assist you in your bankruptcy you should contact them. I am not certain why you want to pay off the creditors earlier than the plan requires. As long as you are able to make timely payments it is usually best to pay creditors as plan provides.

Robert Driessen
Answer Applies to: California
Replied: 9/28/2010
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
It is if you're paying 100% to your general unsecured creditors; otherwise, it's subject to court approval on notice to all creditors. Different courts treat this in different ways, so you need to consult with a bankruptcy attorney in your area.
Answer Applies to: California
Replied: 9/28/2010
The Orantes Law Firm
The Orantes Law Firm | Giovanni Orantes
It is possible to pay off a Chapter 13 plan early. However, if your fortune changes, Chapter 13 trustees tend to advocate for you to simply increase the percentage that you are paying back to your creditors if your plan does not pay 100% of your debts instead of allowing you to receive your discharge early.

In addition, some cases hold that any increase in the value of your property during the life of your Chapter 13 plan belong to the trustee. In sum, your question is too fact-driven to give you a complete answer without learning more about your specific case and circumstances.

You should speak with your existing attorney or consult competent counsel. You should be aware that many districts require Chapter 13 attorneys to sign an agreement binding themselves to answer your questions. The attorney may be allowed to charge you more through the Plan, but should be able to provide the answers you seek.
Answer Applies to: California
Replied: 9/28/2010
Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
You can pay it off early but you would have to pay 100% of the debt. Or you have to stay for the 3 years.

Abel H. Fernandez, Esq.
Answer Applies to: California
Replied: 9/28/2010
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