Final distribution and proceed to close the case?

[1/2 way in OR]

I received a letter from my Trustee, (via my Attorney); that states that the trustee is going to make final distribution and proceed to close the case within 30-45 days, (the letter was dated 12 December, 2007). I am in an old-law C13, 36 month, less than 100% payment to unsecured, and have 3 payments to make still. The last payment is due 1 April, 2008.

My main question is, is this really going to end soon? I have sent in 3 tax refunds, but they no way get my payment near 100%, and I thought C13s could only end early if there was a 100% payment? I am guessing that this is one of two things?

1. This just a legal step that is normally taken 3 months prior to the end.
2. Just perhaps, my trustee was moved by the holiday spirit and decided that since I am a nice guy and played by the rules, he would put me out of my misery sooner than the law requires.

Does anyone out there know how the end comes? Please tell me that #2 is probably what is happening here and Bless us, everyone.

[stljohn]

hi

i just completed my 36 month plan but I got that letter after the final payment was sent. I don't really understand the laws but suggest continue making the payments until they say stop, they'll refund whatever they deem outside the plan.

[1/2 way in OR]

Hey stljohn,

Thanks for the reply. We plan on making our payments until the trustee tells us to stop, we were just thrown by the letter and are trying to figure out if we are closer to the end than we thought we were.

[Flamingo]

I received a letter from my Trustee, (via my Attorney); that states that the trustee is going to make final distribution and proceed to close the case within 30-45 days, (the letter was dated 12 December, 2007). I am in an old-law C13, 36 month, less than 100% payment to unsecured, and have 3 payments to make still. The last payment is due 1 April, 2008.

My main question is, is this really going to end soon? I have sent in 3 tax refunds, but they no way get my payment near 100%, and I thought C13s could only end early if there was a 100% payment? I am guessing that this is one of two things?

1. This just a legal step that is normally taken 3 months prior to the end.
2. Just perhaps, my trustee was moved by the holiday spirit and decided that since I am a nice guy and played by the rules, he would put me out of my misery sooner than the law requires.

Does anyone out there know how the end comes? Please tell me that #2 is probably what is happening here and Bless us, everyone.

Whatever you do, do not stop making your Plan payments until instructed to stop. Call your attorney and ask when that may be possible and follow any instructions. Any overage will be refunded to you after your matter is audited by the Trustee.

[aa06a47]

I received a letter from my Trustee, (via my Attorney); that states that the trustee is going to make final distribution and proceed to close the case within 30-45 days, (the letter was dated 12 December, 2007). I am in an old-law C13, 36 month, less than 100% payment to unsecured, and have 3 payments to make still. The last payment is due 1 April, 2008.

My main question is, is this really going to end soon? I have sent in 3 tax refunds, but they no way get my payment near 100%, and I thought C13s could only end early if there was a 100% payment? I am guessing that this is one of two things?

1. This just a legal step that is normally taken 3 months prior to the end.
2. Just perhaps, my trustee was moved by the holiday spirit and decided that since I am a nice guy and played by the rules, he would put me out of my misery sooner than the law requires.

Does anyone out there know how the end comes? Please tell me that #2 is probably what is happening here and Bless us, everyone.

#2 is not likely....

Under an old law chapter 13, your required to pay into the plan 3-5 years...basically whatever was specified in your plan. An early pay off is allowed AFTER 3 years as long as you pay the amount shown in the plan as the POT amount. (Note, it is my understanding, terms greater than 3 years under the old law was to accomodate paying secured creditors if necessary to extend that long)

In your case, you may have already paid the POT amount due to the tax returns you sent in. As another poster stated, I would not quit making payments until you receive a notice from the trustee to do so. Any amount you "overpay" will be refunded by the trustee.

The new law is slightly different in that it reads "all disposible income for the applicable committement period". The old law was all disposible income for 36 months. While I have read some recent rulings that might make it applicable to early pay off under new law, I feel us new law bkrupts will have to wait and see.