Can I Pay Off My Chapter 13 Bankruptcy Plan Early?

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Chapter 13 bankruptcy gives individuals the opportunity to become debt-free by gradually repaying debt without the burden of creditor harassment or overwhelming bills. Individuals get the chance to reorganize their debt into one monthly payment plan with Chapter 13 bankruptcy. The payment plan typically lasts between three to five years.

However, if an individual’s financial situation turns around, they might be wondering if they can pay off their Chapter 13 bankruptcy plan early.

Can I End My Chapter 13 Payment Plan Early?

If you are in the middle of a Chapter 13 repayment plan or are planning on filing for Chapter 13 bankruptcy, you might wonder what happens if your financial situation improves within those three to five years. Unfortunately, it might be easier for you to end your Chapter 13 plan early if you have a financial setback than if your financial situation drastically improves.

Your Chapter 13 monthly payments may fluctuate depending on your disposable income (the amount of money remaining after you pay living expenses). If your income rises and your expenses stay the same, your disposable income and plan payments will increase.

Note that increasing your expenses won’t really help your case. You will be expected to keep reasonable living expenses.

You Must Complete Your Repayment Plan

If you want to receive a discharge at the end of your payment period, you will need to continue your payment plan agreement. Much like a contract, you will need to pay all your disposable income to creditors for the agreement period to get your unsecured debt balances wiped out.

Have Questions About Chapter 13 Bankruptcy?

If you have questions about your Chapter 13 repayment plan or need help getting started on your bankruptcy case, our team at Jackson & Oglesby Law LLC is here to help you. Our team has the knowledge, skills, and experience you need to help you achieve your desired outcome.

Contact our Indianapolis bankruptcy attorneys today at (888) 713-5148 to schedule a case review!

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