All bankruptcy attorneys are not created equal. Schedule A Free Case Evaluation
Nowack & Olson, PLLC
Let’s do this together.
Speak with one of our professionals.
888-813-4737

Should you pay off your Chapter 13 bankruptcy plan early?

Many people choose the Chapter 13 option when they file for bankruptcy. Also known as the "wage earner's plan," it usually consists of a three- or five-year repayment schedule. You pay the money to a trustee who then disburses it to your creditors. If you can qualify for it, it's often preferable to Chapter 7 bankruptcy because you don't have to liquidate assets and it can stop a potential foreclosure on your home.

Many people who enter a Chapter 13 bankruptcy repayment plan are eligible to discharge (eliminate) a certain percentage of their debt. For example, they may have to pay back only 80 percent of the total amount owed. In addition, some creditors don't find it worthwhile to file claims in a bankruptcy case, so you may actually owe less than you think.

In most cases, if you are able to complete the repayment plan early, you will have to pay off the full amount that you owe to creditors and not be able to discharge part of the debt. Therefore, if you can take the money you would have used to complete your repayment early and save it to continue your payment plan as scheduled, that may be the best course of action

The advice of an experienced Florida bankruptcy attorney is essential not just when you file for bankruptcy, but whenever you have questions or issues while you are in bankruptcy. If you are in a position to pay off the amount due in a Chapter 13, you and your bankruptcy attorney should discuss your options so that you can make the wisest choice for your situation.

Source: Bankrate, "Paying off Chapter 13 plan early," Justin Harelik, accessed Jan. 19, 2016

No Comments

Leave a comment
Comment Information

We take your situation as seriously as you do.

Start with a Free Case Evaluation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

What Our Clients Say:

Back
  • "Maria please let Attorney Olson know how pleased I am with the results of my home loan modification with Bank of America. I am so grateful for all of their hard work, especially since my house was a gift from my parents, I prayed not to lose it to foreclosure....."

    Cassandra M.
  • "We received last Friday our bankruptcy discharged letter for the trustee.
    We want to thank you very much for your services in our bankruptcy file.
    We are very pleased and happy with your service, you are so professional, courteous, organized and fast.

    We will recommend you every time we can.
    God Bless You!"

    Yazmin & Ricardo D.
  • "MY EXPERIENCE WITH MITCH AND CHRIS AND U WERE JUST A GREAT EXPERIENCE I WANTED TO GIVE UP PRIOR TO U GUYS.. DON'T WANT TO FORGET ABOUT LEO, HE'S ALSO GREAT PERSON..COMMUNICATE REALLY GREAT WITH ME,,ACTUALLY ALL OF U ....I CAN EMAIL OR CALL .U ALL ALWAYS REPLY TO ME....."

    Tonya C.
  • "I was very pleased with work of Nowack & Olson, and way you guide me through all process of bankruptcy and loan modification. I received good care and was informed on every step of it. Thank You very much. You save my life!"

    Kasia D.
  • "Just wanted to thank you again for helping my wife and family through a tough time. We are finally starting to get back on our feet and building back our nest egg. We have stabilized our income again, and see the light at the end of the tunnel. I remember one of your tag lines was helping good people through bad times... That always rang true with us....."

    Peter R.
  • "After a rather distasteful experience with a Foreclosure Attorney I was apprehensive to say the least to hire an Attorney to handle our Bankruptcy. After some internet searches and research I found Christian Olsen, and after our initial consultation my wife and I retained his services....."

    Bobby and Tanya
  • "I am a teacher who reaped the rewards of a profitable side business until shortly after the recession. I struggled to keep my business afloat until I finally threw in the towel. Between personal and business debt, I was suffocating in bills....."

    Richard C.
Read More Testimonials

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.