# Prepayment

You can pay off your plan early at any time. There is no penalty for paying off early.

## Why people prepay

* A surprise good month.
* Just wanting it done.
* Refinancing the debt elsewhere.
* A tax refund or investor draw.

Whatever the reason, you can pay off the remaining balance whenever you want.

## How to pay off early

1. Log in to the portal.
2. Click **Make a payment**.
3. The amount is pre-filled with the full outstanding balance. Leave it as-is to pay off in full, or change it to any amount up to the outstanding balance to pay extra without closing the account.
4. Click **Continue to payment** and enter your card or bank details.
5. Submit.

## What happens

* The payment is processed through Stripe (typically immediate for card; a few business days for ACH if enabled).
* When the payment clears, the account balance updates. If the full balance is recovered, the placement moves to **paid**.
* You get a Stripe receipt to the email you entered.
* If you had a plan in place, paying off the balance ends the plan automatically — there are no future installments to charge because each installment was always something you initiated yourself.

## Partial prepayment

You don't have to pay off the entire remaining balance. You can pay any amount up to the outstanding balance. The extra payment reduces the balance immediately. If you want to renegotiate the remaining installments after a partial prepayment (shorten the plan vs. reduce the size of future installments), [send us a message](/for-debtors/debtor-portal/messaging-the-creditor.md) — there's no "recalculate plan" button in the portal yet.

## Does prepayment affect the contingency fee

> This applies to the creditor side, but worth knowing.

For the business that placed the account, the contingency fee is calculated on the payment amount, not on the original balance. So if you settle for less than the full balance, the fee is on the settled amount. If you pay in full, the fee is on the full amount.

## Can I pay off early and dispute later

You can, but you typically can't undo the payment.

A payment generally closes the matter. If you later realize you shouldn't have paid (you discover proof of payment, you find you were the wrong party, etc.), you can:

* Open a dispute even after paying.
* Provide the new evidence.
* The business may agree to refund.

But the burden of proof is higher after payment. Most disputes after full payment do not result in refunds — though they sometimes do for clear errors.

## Tax considerations

Prepayment can sometimes have tax implications if you forgive a portion of the debt at the same time (e.g., a settlement that's less than the full balance). See [Tax considerations: 1099-C](/for-creditor-partners/creditor-finance/tax-considerations-1099-c.md) for the creditor side. As a debtor, talk to a tax accountant about any 1099-C you receive.

## TODO

* Add an "extra payment with recalculate" UI to the payment page.

***

Last reviewed: 2026-05-12 by Customer Success.


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