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Paying of chapter 13 early

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What is the name of your state (only U.S. law)? Mississippi
I only owe a couple of more hundred dollars on my bankruptcy. I still have a year and a half till my payment plan is up. Tax season is here. I could use my tax refund to pay of my bankruptcy. It really doesn't make any sense to me to continue to make payments on a couple of hundred dollars when I can pay it off. However, I'm reading that it is not a good idea to pay it off early. I'm thinking that is more along the lines of if you owe a couple of thousands. Can I pay my bankruptcy off eary?
 


PaulMass

Member
If you find yourself with a windfall, the correct thing to do is to modify your plan to include the additional money to pay your creditors.
 
Thanks, but that's not what I asked. I asked if I could pay of the couple of hundred of dollars when I get my taxes.
 
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I only owe a couple of more hundred dollars on my bankruptcy. I still have a year and a half till my payment plan is up. . . Can I pay my bankruptcy off eary?

By stating you only owe a couple of hundred dollars are you indicating that said amount will pay all "allowed" claims in full thus making the Plan a 100% repayment? If "yes" then you are free to pay off the plan early since such would pay 100%. If "yes" contact the Trustee for the exact "payoff" amount.

Des.
 

Reto

Junior Member
Thanks, but that's not what I asked. I asked if I could pay of the couple of hundred of dollars when I get my taxes.
If it pays your plan off in full then yeah. But I was told if we would have taken chapter 13 we could NOT pay it off early and any tax refund went to the trustee anyway. So....I would continue to make the payments and, if your trustee doesn't ask to see your taxes and if you aren't required to turn those in, I would use my tax money for something else that I needed. Your chapter 13 payments probably are not a lot of money anyway.
 

FlyingRon

Senior Member
Yes, if you can't afford to pay everybody, the trustee makes the decision who gets paid. You can go paying extra to some creditors over another. You have to follow the plan. If you want to accelerate it because your situation has changed, you must get the plan changed.
 

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