Chapter 13 audit

[jennm8911]

Hi everyone I posted before we have a 5% plan for 60 months in June we will have been in our chapter 13 for two years. NDC shows all claims have been paid and are owed zero.
Today when I logged in it shows our case is being audited. How concerned should we be. We have never missed a payment and I a very worried they may dismiss our case.

Thanks
Jenn

[LadyInTheRed]

Were there creditors who did not file claims? And have the creditors who filed claims been paid the full amounts of those claims? If so, it sounds like you may get out of your Chap 13 early and this is the final audit of the trustee's activities which should not concern you.

If all unsecured claims have not been paid and your plan is not being completed early, then this could be a random audit of your BK filing. You may be asked to provided documentation to back up the information in your petition. There is nothing to worry about as long as your petition was accurate and complete.

[jennm8911]

There were no late creditors who filed I am thinking they will raise percentage creditors are receiving since we were at 5%. I don't think they would let us out of our chapter this early.

[LadyInTheRed]

It's not about late claims. The question is did all of your creditors actually file claims? The 5% was based on the debts you listed on your petition. That % is determined before any claims are actually filed. If a creditor doesn't file a claim, it doesn't get a penny. Look at the claim summary on NDC. Is the claim amount different than the scheduled amount for any of the creditors?

[jennm8911]

No the claim amount and scheduled amount are the same. One creditor claimed $5772 was paid $288.68 and says zero owed.

[LadyInTheRed]

Well, I believe there was one BKforum member whose Chap 13 ended when they reached the base amount without paying 100% of unsecured claims. Even the attorney was perplexed.

Maybe there is an error that will be caught in the audit and suddenly the claims summary will change. NDC is not the best way track what is going on with your case.

It's hard to say what is going on, but I don't think you have anything to worry about. Your case would not get dismissed without notice and an opportunity for you to respond to the motion for dismissal. Just keep making payment unless your trustee or attorney tells you otherwise. If you are still uncomfortable, you could call your attorney to make sure everything is okay.

Please keep us updated on what happens.