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  1. #1
    Join Date
    Nov 2005
    Location
    Florida
    Posts
    69

    Default Can You Pay Off Your Payment Plan Early

    IF you have a 5 year payment plan, can you pay it off way early? Like after a year and then get a dismissal?

    Also,

    What happens if you can't afford your house before dismissal and need to sell your home?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Can You Pay Off Your Payment Plan Early

    If you are paying back 100% of your debt, you can pay off your plan at any time. If you have paid on the plan for more than 36 months, whatever percentage you are repaying, the trustee would normally permit you to pay off the plan.

    If you are not paying off 100% and it has been less than 36 months, the Chapter 13 trustee may object to an early payoff. This is not to say that it will happen, or that early payoff is impossible, but for the first three years of the plan USC 1325(b) permits the trustee and unsecured creditors to require that you pay all of your projected disposable income into the plan. A trustee may object to earlier payoff on the basis that, due to your higher-than-anticipated disposable income during that three-year period, they should be able to increase the amount paid into the plan.

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