How to Finish a Chapter 13 Early
- 1). Make an early payoff. If your Chapter 13 plan pays off the sum total of your bills, contact the plan trustee and request early payoff, which is allowable at any time under this type of Chapter 13 plan.
- 2). Check eligibility for early payoff for all other plan types. If you've completed less than 36 months of your Chapter 13 repayment plan, contact your Chapter 13 trustee and request early payoff. She will either accept or refuse your request, depending on the specifics of your Chapter 13 plan.
- 3). Respond to a trustee's refusal for early payoff. If the Chapter 13 trustee objects and orders any new disposable income to figure into the existing Chapter 13 plan, provide proof of disposable income, differentiating any increases from the last plan. The result will depend on how significantly your projected disposable income increases and the specifics of your indiviual plan. However, a significant increase in disposable income could jeopardize your Chapter 13 plan altogether.
- 4). Ask the Chapter 13 trustee to accept the balance of the plan payments in one sum. The age of the plan and your state of residence will determine if this option is viable. In most cases, your plan must be at least 3 years old.
- 5). Request early payoff if you've completed more than 36 months of your Chapter 13 plan. Contact the plan trustee and ask to finish the Chapter 13 early. According to McDonald Law Offices website, "Chapter 13 trustees will usually accept payment of the balance of the plan payments at any time."
