Payment Term

[GettinBy]

I have another question to pose to those with more knowledge and/or experience.

I was told by the attorney's office that the payment term (36 months, 60 months, etc.) was based on the date of the plan confirmation and NOT from the date you actually started making payments. You have to keep making payments until the proper anniversary (36, 60 months, etc.) of your actual confirmation date.

I don't pretend to be an expert by any stretch of the imagination but this doesn't sound logical to me. Some folks don't receive their actual confirmation until many months after the actual payments to the trustee has started.

I don't have any law or written validation of this but my 'common sense' gene is having a problem with this.

What's the experience of those of you who have already climbed this mountain and made it to the top?

[isitreal]

The payments are based on when you FILE.. not when your plan is confirmed. Your confirmation is just that.. it just confirms your plan is acceptable. If it's not, then the amount you pay and/or the percentage you pay back may be modified.

[GettinBy]

The payments are based on when you FILE.. not when your plan is confirmed. Your confirmation is just that.. it just confirms your plan is acceptable.

That's the only logical conclusion I can come up with also. Any other way just doesn't add up. I suppose time will tell but I'm still trying to find confirmation of this one way or the other.

Thanks for responding.

[arkienurse]

It took us almost a year to get confirmed. Our payment period started from the day we filed, not the day confirmed.

[GettinBy]

It took us almost a year to get confirmed. Our payment period started from the day we filed, not the day confirmed.

I am fairly close behind you in terms of the time-line so your experience gives me further hope that I'm being fed inaccurate information.

This month (1/2008) marks the 36th payment and 37 months since filing. 13datacenter shows us within about $100 of having reached our payback percentage and our last payment has not yet been posted. Logically, that means it should be almost over (finally!) but the person I spoke with said payment has to continue until the anniversary of the confirmation. When I questioned this, I was told that many people believe the payment time-line runs from date of filing or date of 1st payment but they are wrong. As Mr. Spock would say, "that's highly illogical".

Everyone makes mistakes but you would think someone who specializes in BK law would have the straight information on something that should be fairly 'cut-n-dried'. It certainly doesn't give me a very 'warm fuzzy' feeling. Hopefully this will soon be just a bad (but very educational) memory.

[mcdulph]

I don't see how it could possibly have anything to do with the confirmation date. If it did, creditors could & would file endless objections just to drag things out and force you to make more payments. I've heard a lot of horror stories, but I've never heard that one! Congratulations on being almost finished.

[Flamingo]

I have another question to pose to those with more knowledge and/or experience.

I was told by the attorney's office that the payment term (36 months, 60 months, etc.) was based on the date of the plan confirmation and NOT from the date you actually started making payments. You have to keep making payments until the proper anniversary (36, 60 months, etc.) of your actual confirmation date.

I don't pretend to be an expert by any stretch of the imagination but this doesn't sound logical to me. Some folks don't receive their actual confirmation until many months after the actual payments to the trustee has started.

I don't have any law or written validation of this but my 'common sense' gene is having a problem with this.

What's the experience of those of you who have already climbed this mountain and made it to the top?

The payments are due based on your filing date. Your first payment is due 30 days after filing.

[arkienurse]

I am fairly close behind you in terms of the time-line so your experience gives me further hope that I'm being fed inaccurate information.

This month (1/2008) marks the 36th payment and 37 months since filing. 13datacenter shows us within about $100 of having reached our payback percentage and our last payment has not yet been posted. Logically, that means it should be almost over (finally!) but the person I spoke with said payment has to continue until the anniversary of the confirmation. When I questioned this, I was told that many people believe the payment time-line runs from date of filing or date of 1st payment but they are wrong. As Mr. Spock would say, "that's highly illogical".

Everyone makes mistakes but you would think someone who specializes in BK law would have the straight information on something that should be fairly 'cut-n-dried'. It certainly doesn't give me a very 'warm fuzzy' feeling. Hopefully this will soon be just a bad (but very educational) memory.

Geez, what a maroon you must have talked to. Payment has to continue until the trustee tells you to stop, it has nothing to do with the confirmation date. If data center shows you with only $100 to go, then you are basically done. It can take a while for the trustee to get around to filing the order to stop payments. I have heard of people paying for 3 or 4 months before being told to stop. Do you have a Pacer account? If you do, look up your case and see if anything has been posted to your case lately. And I would try calling the attourney again. If you get the same story, it wouldn't hurt to call the trustee and ask. ( course you might get wrong info then too- I called trustee to find out why they only took 12 cents of my payment one month. That person said it wasn't disbursed because the payment didn't get there before the 27th. Right, then why did they take 12 cents? It turns out that they only took 12c because that is what it took to fulfill my plan base.)
At any rate, even if you have to keep payments going for a while longer, you will get it refunded to you.

Congrats for hanging in there.

[GettinBy]

Do you have a Pacer account?

I have established a Pacer account and have been checking the date shown for the "last filing" on a daily basis.

It's only a matter of time now but naturally I'm anxious to have it come to a close and start rebuilding. It's been a long haul and believe me, I see things from a very different perspective than I did 3 or 4 years ago. I really sympathize with those who have to struggle through a 60 month plan. 36 months has seemed like an eternity.

Sometimes a sequence of unfortunate events come together and gives you a big whammy up side your head. Experience is an effective but often expensive teacher.

[sinkorswim]

Congrats on being almost done! That's awesome. Yes, our payment term was definitely based on when we filed as it took nearly a year for our plan to be confirmed. Our creditors didn't even get disbursed anything until we were confirmed!

Anyway, we met or plan base and made our "final" payment already two months ago but no stop to them yet. Maybe next month. We just had what we think is our last disbursement and it seems to have completed all of our payment obligations.

So, tailing off what you said regarding perspective, I couldn't agree more. It's been a big learning experience. We didn't realize we could be making payments for months after we 'finished' -- and when we got that news, it was painful. We didn't even think to ask about the way this part of the process would work 3 years ago and never considered that the last months would be so hard (it's more the yearning to be done). We will be thankful when this ends and have learned a lot!

[EndInSight]

Good gads........ya mean to say that FIVE YEARS could turn into months more??

On an average, to those who have made it to the top... how long DID it take for a notice to let you know you are done, to arrive????

I am SO weary and I know everyone feels the same.

Miss Posh