Legal Question in Bankruptcy in Wisconsin

Early Payoff in Chapter 13 Plans

Early payoffs of reduced amounts in chapter 13 cases require advance approval from the court and/or trustee. Such arrangements are only possible after the debtor has performed as promised in his plan for a certain minimum period of time. Large payments made without advanced arrangements generally do not reduce the percentage of debts expected to be paid under the confirmed plan--the payment is simply a "bonus" for creditors/gift from the debtor.