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Can You Pay Off Your Indiana Chapter 13 Bankruptcy Early?

Individuals who suffer financial disruptions may find it extremely difficult if not impossible to get themselves out of debt. Even though filing for bankruptcy is not the most preferred outcome, doing so may be the only way to start fresh again and get out from under such massive financial burdens. Chapter 13 bankruptcy can help people overcome their crushing debt through more affordable and realistic payment plans. In as little as two years or up to five years, a person may be able to rid themselves of their financial burdens.

Life is unpredictable; one day you might be struggling and another day you might be winning. If you have declared Chapter 13 bankruptcy in Indiana and you find yourself in a healthy and robust financial situation it is reasonable to want to know if you can just pay off your debt early and for good. This is a question that Christopher L. Arrington, an Indiana bankruptcy attorney, is often asked. When you have concerns or questions regarding the bankruptcy process in Indiana and your rights, Christopher L. Arrington can give you the informative legal guidance necessary to help you achieve the best possible results.

Is it Possible to End Your Indiana Chapter 13 Bankruptcy Early?

Typically, if you are planning to file for chapter 13 bankruptcy, you are not in an ideal financial situation. That does not mean that you can not be better positioned financially in the future. If you have filed for bankruptcy and then you are able to work yourself out of the hole so much so that you have the funds to get rid of the debt this would be the perfect outcome. 

The issue with trying to pay off your bankruptcy plan early is that the payments you make will be dependent on how much money you have on hand once you have paid for your living expenses. When you file chapter 13 bankruptcy, you essentially sign a contract with your creditors, and they deserve to be paid for the agreed amount of time. So, you are essentially subject to staying within the confines of your agreement and the length of time that you entered into it before your debt can be discharged. Creditors will expect to be paid your disposable income for the entirety of the time to which you agreed to. So whether you have a two-year payment plan or a five-year plan, you will have to pay until the end of your agreement to have your unsecured debt eliminated.

Meet With an Indiana Bankruptcy Attorney Today

Creditors want their money and if you have ample disposable income prior to your discharge, they are going to claim it. Even if you take legal action to see if you can get out of your payment plan early, it is highly unlikely that your creditors will accept this because, from their point of view, they will lose out financially. Bankruptcy can be confusing, and if you have questions or need help, please call Christopher L. Arrington, a Danville bankruptcy attorney at (317) 745-4494.

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