QUESTION
2 years ago, I went into a Ch 13 Bankruptcy becuase of a failed personal business venture. I was put on a 3-year repayment plan.
Asked on Apr 28th, 2012 on Bankruptcy - Virginia
More details to this question:
I have a friend who was in a similar situation but with a 5-year repayment plan. At the start of his 4th year, he asked the Trustee if he could refinance his house and use the money to pay-off the balance of his case. The Trustee & Judge agreed and his case was discharged at his 4 year mark. My question is, what is more important? Repayment of the "amount" set at the beginning of the case or the length of "time" of the case? If I only owe $4K during this last year, can I just repay that amount early and ask for the case to be discharged? I started a new job this year and I''m curfrently working a temporary location that pays a lot of overtime and will be able to afford to do so soon.
1 ANSWER
Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
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3 Awards
This really depends on what the courts in your jurisdiction allow. It also depends on what percentage of unsecured debts your plan is repaying. If you are doing a 100% repayment plan, the court won't have any problem with you paying it off early. If you're paying less than 100%, then you might have issues especially if the reason is you anticipate your income increasing.
You need to discuss this with a bankruptcy attorney in your area.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
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Answered on May 01st, 2012 at 9:22 PM