Paying off Chapter 13 earlier than Plan


Paying off Chapter 13 earlier than Plan

Letter to “Ask Leon”

I recently filed Chapter 13 and has pretty decent payment arrangements. That leads me with a decent living. I do not own a house and would like to buy one in the near future. I am working on a plan to have my bankruptcy paid off in 15 -18 months. I was told not to do this from someone (not my attorney) do you know if there are penalties involved with paying off a chapter 13 earlier than 2- 3 years.

Leon Says…

What is the percentage of unsecured debt that you are paying? If you are paying 100%, then the sooner you pay it off the sooner you start to build your new financial future. If less than 100%, the law requires you to pay your best good faith effort for at least 36 months. If you filed under the new law, and you are paying less than 100%, you might be required to pay your best effort for 60 months if your income was above median during the 6 month period prior to the month that you filed.

By |2012-10-09T06:08:47+00:00October 9th, 2012|bankruptcy-faq, Financial|0 Comments
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