Do I have to pay my chapter 13 bankruptcy plan all the way out or can I pay it off early to finish it up? 17 Answers as of November 24, 2014

Do I have to pay my chapter 13 bankruptcy plan all the way out or can I pay the total amount of payments off early and be done with the bankruptcy and move on? Thanks.

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Ronald K. Nims LLC | Ronald K. Nims
If you suddenly have enough money to pay off the plan payments early, the trustee will probably want to increase your payments to reflect your new earnings or assets. Most people in a Chapter 13 don't pay 100% to their unsecured, non priority creditors (like credit cards). If you had a large increase in income or a inheritance, that money belongs to your creditors not to you.
Answer Applies to: Ohio
Replied: 11/24/2014
Joseph Lehn, Esq
Joseph Lehn, Esq | Lehn Law, PA
Chapter 13 Debtors may request a pay off of their plan payments from the trustee. They can pay the remaining balance early. However, be advised that the trustee will ask what the source of the funds for pay off. If you are not paying all of the claims in full, and the trustee determines you have additional funds to pay to your creditors, you may end up paying more than the original amount to unsecured creditors.
Answer Applies to: Florida
Replied: 11/21/2014
Freeman Law Group, LLC
Freeman Law Group, LLC | Derek Freeman
Your monthly payment in a chapter 13 plan is supposed to represent your disposable income. In other words, you shouldn't have any extra money to add to your monthly payment unless you've had an increase in income. If you had a change in income, you need to report that to your trustee, and then make an amendment to your payment plan to account for the extra income. Your bankruptcy plan will end when all of your debts are paid off.
Answer Applies to: Colorado
Replied: 11/19/2014
D.J. Rausa, Attorney at Law | D.J. Rausa
Too many factors to just answer that simply. You will need to speak with an experienced bankruptcy attorney who can review your case and give you some sound advice.
Answer Applies to: California
Replied: 11/19/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
You have to file a motion to pay up early and finish up.
Answer Applies to: New York
Replied: 11/19/2014
    EDWARD P RUSSELL | EDWARD P RUSSELL
    The Ch 13 Plan was made into a court order so that you must follow the details of the plan.
    Answer Applies to: Minnesota
    Replied: 11/19/2014
    Stephens Gourley & Bywater | David A. Stephens
    Unless your plan is a 100% plan or you pay 100% early you cannot pay the plan off until at least 36 months have passed.
    Answer Applies to: Nevada
    Replied: 11/18/2014
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    Normally you can not prepay your Chapter 13 (i.e., pay it off early). If you are without counsel, I would pay an experienced BK lawyer to review your file and advise you. Better safe then sorry.
    Answer Applies to: Colorado
    Replied: 11/18/2014
    Steele, George, Schofield & Ramos, LLP
    Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
    In the Northern District of California, if you want to end your Chapter 13 early, you must pay 100% of your debt. Otherwise, you must complete your plan as confirmed. If you are not in the Northern District of California, you should consult a local attorney.
    Answer Applies to: California
    Replied: 11/18/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    You have to keep making the monthly payments. You can not pay it off early.
    Answer Applies to: California
    Replied: 11/18/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Unless you pay all the claims filed in your Chapter 13, you cannot pay off your Chapter 13 early.
    Answer Applies to: Nevada
    Replied: 11/18/2014
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    Here's the problem in trying to pay off a Ch. 13 early. The law requires you to pay into the plan 'all your disposable income' for the period of the Plan which can generally be either 36 or 60 months. So if you receive a windfall, and try to pay off your plan in advance, at least some Trustees will tell you may not do so, but they will happy to take the windfall AND ALSO the monthly Plan payments. BUT, if your windfall will pay off all creditors' claims at 100%, then you should be able to pay it off early. By all creditors' claims, I mean the total of their claims as of the time you filed the BR petition not the percentage of their claims which the Ch. 13 Plan will pay out. It's always a good idea to retain an experienced lawyer in bankruptcy (and most other) cases.
    Answer Applies to: Wisconsin
    Replied: 11/18/2014
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    It is unwise to pay it off early because you are committed to pay your creditors for a length of time as well as an amount whichever is greater.
    Answer Applies to: Michigan
    Replied: 11/18/2014
    Law Office of Andrew Oostdyk
    Law Office of Andrew Oostdyk | Andrew Oostdyk
    The answer to this question depends on the amount of unsecured debt you will be paying through the Chapter 13 Plan. If your Plan will be paying 100% of your unsecured creditors, then yes, you can pay your Plan early and your case can be finalized after all payments have been received. If your Plan is paying less than 100% to your unsecured creditors, and you make additional payments on the Plan, the Trustee will treat those additional payments as additional disposable income available to your unsecured creditors and will not shorten your Plan. You will be expected to continue making your normal monthly Plan payments until the date your Plan ends or until you have paid 100% of your unsecured debts.
    Answer Applies to: Texas
    Replied: 11/18/2014
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    It depends. If your case is one of the few that pays 100% of the unsecured claims that were filed, it may not matter if you pay early. Otherwise, you should consult an expert.
    Answer Applies to: California
    Replied: 11/18/2014
    Stittleburg Law Office
    Stittleburg Law Office | Bernd Stittleburg
    In order to payout your Chapter 13 case, you must have a plan that pays your creditors 100% of the debt owed, otherwise, no you cannot pay it out early.
    Answer Applies to: Georgia
    Replied: 11/18/2014
    Mauritz Van Niekerk, Attorneys at Law
    Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
    You can pay earlier but usually you need to stay in it a third of the time.
    Answer Applies to: New York
    Replied: 11/18/2014
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