04 Feb Can I pay off my Chapter 13 early?
For many districts around the United States when you file a Chapter 13 your Plan must run for 36 or 60 months. This issue has not been completely resolved in all districts. In the Western District of Missouri, as outlined In re Schanuth, you must go at least 36 months if you are below median income and at least 55 months but no later than 60 months if you are above median income. If you wish to pay off earlier than what is described above your must pay 100% of your unsecured creditors who have filed a Proof of Claim. The Western District of Missouri uses the language of 1325(b)(4) of the “applicable commitment period” as established by the current median income levels.
So can you pay off your Plan early? Check with your attorney to see how your district has decided on this issue as it may cost you more than what you think.
See also: Why file a Chapter 13? by Cathy Moran.