Chapter 13 near being done, now what?

[Bernie]

We filed chapt. 13 in Sept. 05. Started making monthly payments Oct. 05. We have a 36 month plan. I am assuming that Sept. 08 will be our final payment. They have our amount to pay at 31,500 and we have paid a total to plan of 30K so far. So, I am assuming that when the Sept. payment is made we are done, is that correct? What happens next. How soon will we get our discharge papers? Any help would be appreciated.

[nojusticehere]

What I've been told is to continue making payments even if you think you are done. Even if you believe you're done in Sept, continue thereafter, Oct, Nov, etc. until you're notified to stop. If there is any extra it will be refunded to you. How long does it take to get your discharge?....that depends on your Trustee. You can also get with your atty or the Trustee's office for further answers and clarification. Good luck to ya, and congrats!!!

[funspot08]

Ahh

When you are a payment away from the total being satisfied, call them and request a payoff audit. That way they'll check the numbers to see if the running balance is correct and let you know that final balance of the plan. We had some payments distributed in a clump back two years ago by our trustee and it skewed our percentage up about 4% on the 13datacenter. I contacted the trustee's office to do a payoff audit and found out that I had already paid enough into it.

[rrockinggramma]

and check to see if your 36 month mark started counting from date of filing or date of confirmation. I found out my 36 month mark is confirmation date, thus extending my payments for 6 more months. (now done paying in Oct 08)

[CH33 Paralegal]

yeah, pop a bottle and pat yourself on the back. congratulations....a 13 is a tough way to go about it.

no-justice is right, keep paying even after september. You do have a right to any overage you're charged.

The trustee has to do their internal audit, which could potentially take some time and there is no set time table for it.

[Flamingo]

Bernie - we too were Old Law. Upon making your last payment, contact your attorney for further instructions if necessary to send in any more payments and/or stop any payroll deductions if payments are being autodeducted from your paycheck. When your Trustee receives your last payment, you should or will get a letter from your Trustee explaining what is going to occur for your Plan to be discharged. Your trustee will send out all remaining payments to the creditors along with documentation that needs to be signed by each creditor and returned to the Trustee. Depending on how fast that occurs and the time your Trustee will need after receiving all those signed forms is how fast your discharge can be done. To give you a timeline idea, we received that letter from our Trustee in mid-June 2006 (we bought out of our Plan in mid-April 2006). Our discharge was dated August 30, 2006.

Due to the several months involved in obtaining your discharge, that is why I suggested contacting your attorney after making your last payment to avoid sending in 2 to 3 months of extra payments that would just be refunded to you. Your attorney can advise you as to all that.

[funspot08]

and check to see if your 36 month mark started counting from date of filing or date of confirmation. I found out my 36 month mark is confirmation date, thus extending my payments for 6 more months. (now done paying in Oct 08)

Wow, that's a tough trustee to deal with. Most consider the filing date to be the month gauge, not the confirmation date. Some people have waited a year and a half to be confirmed in certain districts.

[funspot08]

To give you a timeline idea, we received that letter from our Trustee in mid-June 2006 (we bought out of our Plan in mid-April 2006). Our discharge was dated August 30, 2006.

One of the most unfair issues that people have to contend with is how inconsistent the process works around the country. In our case, I requested an audit just as my latest payment had posted, and in exactly two weeks, the plan was audited, completed, refund issued, and a request for discharge (pending the trustee's final report that they send to the court once all documents are signed by the creditors) to the court. We've lucked out and had an extraordinarily quick process. It seems that from the date of last payments being distributed, most get officially discharged in about a month.

[jgarton244]

As some stated above, contact the trustee in early December for a final payment amount due. I sent an email in Nov. 05 asking for final payment amount. I was sent a letter with final amount due, to be paid by certified funds. Up until that point we had paid by personal check. We sent last payment in Dec 05, discharged in March 06, closed June 06. If you have automatic payments from your payroll at work, then they must keep paying until trustee notifies them to stop, which can go on for a period of time after last official payment, and then you are refunded over payment after audit of case.

[Flamingo]

One of the most unfair issues that people have to contend with is how inconsistent the process works around the country. In our case, I requested an audit just as my latest payment had posted, and in exactly two weeks, the plan was audited, completed, refund issued, and a request for discharge (pending the trustee's final report that they send to the court once all documents are signed by the creditors) to the court. We've lucked out and had an extraordinarily quick process. It seems that from the date of last payments being distributed, most get officially discharged in about a month.

The paperwrok we received from our Trustee after our final payment said 60 to 90 days to receive discharge papers. Of course it can be quicker; however, if your Plan end falls around major holidays or the summer vacation season, you can expect delays all around.