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If you want to pay off your Chapter 13 plan early

A raise or bonus at a job or some other sudden increase in income could have someone wondering if it is really necessary to spend the rest of the original time period paying off a Chapter 13 bankruptcy plan in Oregon. According to, it depends on several elements of the debt reorganization plan. The most important factor, though, will probably rest with how much disposable income the person now has.

The Oregon State Bar notes that to make a change such as a reduction in the amount of time needed to complete the bankruptcy, a person will need to file a post-confirmation modification. To begin this process, a modified plan must be presented to the trustee listing the changes the person wants to make to the current plan.

There are forms that list a debtor’s personal property, real property, income and expenses. The trustee must update these schedules to reflect the changes in circumstances that allow the early repayment. The trustee may waive those that the modifications do not affect.

Not only does the trustee have to approve the new plan, comment on it or suggest changes, the creditors also have the opportunity to make objections. However, they do have a time limit. The trustee has 14 days, after which a debtor can go ahead and file the modified plan with the court. Then, there are 21 days in which objections can be lodged, and if there are any, a hearing is required.

If the objections are found reasonable, the plan may be changed to reflect these. If not, the outstanding objections may not keep the modification from being filed. However, as long as the trustee has not filed it, the debtor must continue making the payments according to the original plan.

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