Early Ch 13 payoff made

[dieselman]

Just pushed the pay button on TFS and paid my 13 off early and for less than 100 percent.

[justbroke]

Congratulations! An early payoff in a Chapter 13 is unique and rare.

[flashoflight]

Big congrats! Quite the rare unicorn to do early payoff for less than 100%. I have a friend who is 100% above median and I think he is planning to work his butt off with a 2nd job to pay it off early too. I think paying off early if 100% plan is great if you can do it.

[sophieanne]

Congratulations..enjoy your new financial freedom 😊

[mregione]

Congratulations! My husband and I paid our 13 off early @100% (Last payment would have been December 2022). Made the last payment in January and just found out yesterday that it was discharged by looking at Pacer. Officially received the call from the lawyer today verifying it. It is a great feeling for sure.

[dramos23]

I thought an early pay off wasn’t allowed. How can this happen? Please educate me

[justbroke]

I thought an early pay off wasn’t allowed. How can this happen? Please educate me

An under-the-median debtor can payoff early (the Plan Base) after 36 months have elapsed. (In actuality, under-the-median income debtors only need to propose a plan of 36 months. Some of these debtors propose a longer plan to stretch out the payments. The reason the debtor can payoff for less than 100% is because they have already met the 36-month requirement. An exception would be if they are required to pay 100% because of the best-interest-of-creditors test.)

If you are an over-the-median debtor, then you can't payoff early without paying 100% of the allowed unsecured claims.

[Carmella]

Congrats!

[JellyBeany]

Congratulations! You must feel so happy! How did you do the early payoff? Did you have a windfall of some kind? Did you refinance your house?