discharge in chap 13

[joanmary75]

We are making our last payment on our chap 13 plan. How does the dishcharge process work? How long does it take?

Anyone with info that has already been discharged please let me know.

Thanks

[SinkingFast]

Since you're close to the end of your plan payments, you might wanna call the Trustee's office and remind them you only have a payment or 2 left. There have been posters here who've had to pay an extra month or 2 before the Trustee orders a stop to the payments.

Then the Trustee has to do a Final Audit of your plan. All the money that's come in, compared to all the money paid out to who. If you do happen to pay in exess, eventually, the excess payment monies will be refunded to you.

Some Trustees are quicker than others, but in general, you can anticipate about 2 months for the final audit to run its course. After that, the Trustee will issue you your Discharge and you'll be on your way to financial fresh start.

Good Luck and keep us updated on how you're doing in your new life!

[lrprn]

We are making our last payment on our chap 13 plan. How does the dishcharge process work? How long does it take?

Anyone with info that has already been discharged please let me know.

Thanks

First, congratulations on making ti to your last Ch 13 payment, joanmary! That is an incredible achievement! Congratulations!!

From what I've read and researched, 60-90 days from your last payment to your discharge is pretty typical. Your trustee has to do an audit of all the payments for each creditor and ensure that everyone has been paid according to your plan - that takes time. Your lawyer should be able to give you an idea of how long the typical wait is in your bankruptcy district. As SF said, if your payment is set up as an automatic withdrawal, ask your lawyer to check with your trustee to make sure that it will be stopped on time.

[downhill]

We're right there with you. We made our last Chapter 13 payment on Dec 29 2006. ($2700 per month for 36 months)

I checked the national data center website on Tuesday (for the first time) and it shows we only owe $376.37. The balance in our acct shows as $3,362.08.

I called our trustee's office on Wednesday and they transferred me to the Closing Department. (What a great feeling that was....usually when I call somewhere, I am transferred to the Collections Department.)

The woman explained that they make the payouts to the creditors on the last day of the month. So $376.37 will be sent out on Jan 31 to whatever creditors still show a balance owed.

Once the final payout is done to the creditors on the last day of January, the trustee will motion the court to close our Chapter 13 case. Once the paperwork is done, she said that our case should be closed by February 15.

The trustee will send us our refund/overpayment of approx $3300.00 on the last business day of February. And that will be it.

The reason they said that we have an overpayment is because some creditors don't file a claim after the Chapter 13 is filed and/or some creditors don't get the interest etc that was originally thought.

Hope this helps....

[Frodo]

downhill,

Wow, $2700 is quite a payment.

[downhill]

Tell me about it!!!! $2700.00 per month was brutal. It's based off of your income. Technically, we have been living off of only my income for 3 years. My husband only got like $250 or so twice a month once the payment was deducted.

The base plan was $97,247.53. The majority was for a defaulted second mortgage. Once we filed, we went ahead and added in all my student loans and back IRS taxes. Very very little was for credit cards. We haven't had an active credit card in over 10 years so we KNOW we can live without them. I have a work issued credit card if I have to reserve a car or something.

Our second mortgage was originally through Transamerica Financial. We were always behind on our payments. The company eventually changed names or something and we never heard anything from whoever got it. We hoped and prayed it was forgotten about or the paperwork was lost, but no such luck.

A few years later we got the default note from Wilshire. We didn't have any time because they already scheduled to foreclose on our second so we went ahead and filed Chapter 13.

Once everything is closed, we will only have a house payment and utilities. Medical/dental/car insurance comes directly out of my check. We don't owe anything on any of our vehicles.

I can't wait!!!!!

[edward08r]

Made my last Chapter 13 payment on November 30th of last year. Recieved my discharge papers in the mail yesterday, dated January 03. So..took about 5 weeks or so for me. THANK HEAVEN THIS NIGHTMARE IS OVER!!

[M900]

Paid off my ch. 13 in mid august and I just finally received my discharge and check from my trustee on friday!! Long time coming but what a relief!! It can take up to six months depending on how busy your trustee is.