Inability to Pay

• One of the more common reasons that your Chapter 13 plan would end early is that you can no longer pay the required monthly payment. This may be because you lost your job or a portion of your income. When this happens, your attorney can ask the court for permission to convert your Chapter 13 repayment plan to a Chapter 7 liquidation. Keep in mind that you could lose property in the event of a conversion, but your attorney and the court will make that determination. In certain circumstances, the court may grant a discharge because of your financial hardship.
  
  

Missed Payments

• If you miss payments on your Chapter 13 plan, the court can terminate, or dismiss, your case early. Making payments to the court-appointed trustee is just like making payments to any other creditor, such as a mortgage lender or a credit card company. Early dismissal means that the case is thrown out without an official discharge, and you basically return to the same financial state you were in before the case started.
  
  

Increased Payments

• If you find yourself with more income, through new employment or a pay raise, your attorney can ask the court to allow you to make higher payments than were originally planned. With these higher payments, you may be able to terminate your Chapter 13 plan early and get a discharge sooner than you expected.
  
  

Complete Payoff

• If you receive a lump sum of money for any reason, such as a gift, inheritance or even by winning the lottery, your attorney can ask for permission to pay off your remaining balance completely. This will lead to an early termination of your Chapter 13 plan and a satisfactory discharge of your case.
  
  

Always Keep Your Attorney Informed

• If your financial situation changes at any time while you are still making payments in a Chapter 13 plan, always inform your attorney. He or she will be able to suggest the best course of action and help you make the decisions that are right for you and your family.