Division 1 Proposal – Early Payment/Termination?
When someone makes a Division I proposal (which is accepted) – can someone make a lump sum payment and have early termination from the proposal process?
i.e. if the proposed amount is $50k over 5 years – someone wins the lotto/inheritance for $50k and pays it off month #2 – will the proposal period end (and the credit rebuilding process begin)?
Rephrased: how is windfall or excess income treated during the Division I period?
If a repayment amount is agreed upon for the proposal can early payment of that amount result in early discharge from the proposal?
Sure you can pay out your proposal early – simply contact your trustee to work out the details.
Be prepared to provide an explanation of where the money came from – particularly if you only filed the proposal a few months ago…