Our Houston-area chapter 13 bankruptcy clients often ask us if they can pay off their chapter 13 plans early, and be entitled to a discharge. 

The answer is yes, you can pay your plan off early. But if you do, you must pay your unsecured creditors 100% of the amount that you owe them (without any further interest after the bankruptcy filing date).

If your income is under the median income for the state, your "applicable commitment period" is 36 months, so you must pay for at least that period of time (unless you pay 100% of your unsecured debts back in less time). If your income is over the median income for the state, you must pay for 60 months.


J Thomas Black
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Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization