Q: I am one year into a 4 year stretch for Chapter 13. Is there a way to pay it off early and regain my good credit?
A: You can always pay it off early if you have the ability. Your credit will recover faster if you pay it off early than if you wait.
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A: You should contact your Ch 13 Attorney and ask him or her to check the case status. In many cases, especially where the Plan does not provide for 100% payment to general unsecured creditors, "paying off the plan" is not the right option, because (1) it shows additional income / earnings and (2) there may be an aggregate of general unsecured claims that add up to an amount which is higher than you anticipate. Staying the course until the Discharge Order is issued is the best option in this scenario. IF you are a Ch 13 case where 100% was allocated to general unsecured creditors and you have funds to pay off the Plan early, then this could be the best option. In summary, every case presents a different situation which requires the careful review and advice of your attorney.
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