Ch13 Discharge paperwork??

[kelvinjai]

Hi, here is my case:

I refinanced my house and paid off my Ch13 earlier. The funding happened 2 weeks ago and I confirmed that the trustee office has received my money 1 week ago. According to my mortgage agent, the trustee should send me a Discharge paperwork within a week after they received the money. Is it correct? It has been 2 weeks since the funding already but still no words from the trustee yet. I really want to speed up the thing because once I receive the Discharge paperwork, the mortgage agent can help me to clean up my credit report ASAP..

Thanks alot!!

[SinkingFast]

13inOR is going thru the same thing. Refi'd house and paid out the Ch 13 plan early.

13inOR is still making plan payments. I think that was attny's advise, or maybe it's payroll deduction. Can't remember which.

But don't just stop making payments just because you've paid off your plan.

The Trustee will have to "officially" release you from payment obligations and there will be an final audit as well. After the audit, you'll be discharged and closed. If you've overpaid into the plan, the Trustee will refund that money to you.

At least that's my understanding of how this all works.

[13inOR]

Kelvin, SF is right, I did pay off my chapter 13 early with refinance, but my main advice to you is---- DONT HOLD YOUR BREATH!!!!!!!!!!!!!!!!!!!!!!!

Here is our timeline:
Disbursement made to Trustee from refi money on 2/28/06.

PERIOD. There has been no action whatsover on his part to disburse the funds, when I check NDC, there sits the money, not being disbursed to anyone. In fact, he will actually owe me about $2500 when he finally gets around to auditing, discharging, and closing.
I know its frustrating but our attorney said it would be about 2 months, and its been one month for us already, tomorrow. Because I noticed that the pattern so far has been for the trustee to send the payments to the creditors on the last day of the month, I am hoping something will happen on March 31st.
I did call him about 2 weeks after the payoff and request a letter stating that
we had met all our requirements to the bk and owed nothing, so I have that for my records if need be, but my bk is still techinically open.

SF-I didn't have to keep making payments, nor was I advised to, its just that
2 more payroll deductions came out before we could get the paperwork from the judge in to stop the deductions from my check. But, I will get that back eventually, whenever Mr Trustee gets good and ready.
I don't mean to bum you out, just keep in mind that the amount of time you have waited is not necessarily unusual, considering I've got a couple weeks on you already, and I'm still waiting.!!! : ) I hope something happens for you really soon, though.

[kelvinjai]

Thank you so much for the information. Here is my timeline:

3/13/06 - Refi
3/20/06 - Trustee office "received" the payment from the title company (I checked my case status on my trustee website).

I used a "Ch13 special" mortgage agent to refi my property because I thought they should know all the details. She told me that "by law", the trustee should give me an invoice of discharge 7 days after the trustee receive the money and from there she can help me to clear my credit report (not really clear, but at least show the Ch13 as discharged). Does it sound right??

Based on your experience, the trustee will take awhile to do anything even they have my money on hand? Who is responsible for the interest in the meantime? I just don't understand what is the reason for them to hold my money....

[kelvinjai]

...when I check NDC, there sits the money, not being disbursed to anyone.

I did call him about 2 weeks after the payoff and request a letter stating that
we had met all our requirements to the bk and owed nothing, so I have that for my records if need be, but my bk is still techinically open.

By the way, what is NDC? And may I ask what kind of letter you received from your trustee? It seems like my trustee is not too cooperated..

[13inOR]

NDC is the national data center website, you can log in and check your trustees info. www.ndc13.com

Anyhow, I dont know about the "7 day" discharge requirement, I have never heard of that. Our attorney told us a couple of months, and that is proving true.
I dont know what happens with the interest, but I do know they have to refund any overpayment, and have to do an audit first to insure everyone and everything was paid correctly.

The letter I requested, via email, basically states "debtors have made all required payments, have satisfied all their obligations, no futher payments are required" . I wanted to have something showing I didnt have to make more payments so I could get my wage order stopped. You could probably request something like this as well. I had it the next day.

[Pumpkin729]

refinanced

For those of you that refinanced your house. Can you tell me how far into the plan were you?? How high were the loan rates?
What I don't understand is how helpful is it to payoff early? You still have to make payments to the loan company (with interest) so why not continue making the payments to the trustee? I am confused, help me out here.

[13inOR]

We were 19 months into a 29 month plan, the interest was 8% because they were able to use the payments to the trustee as part of the credit history.
Our plan was 100% anyway, so we werent losing anything.
How it benefitted us was that we really needed to replace our car, and it was much simpler to do so outside of the 13, and we had a second mortage with
a balloon that would soon need to be refi'd into one mortgage anyway.
Also, our payment to the trustee was over $1300 per month, so for us it made sense to get out from under it early.
For most though, it doesn't make sense, and in many cases can cost you far more money, so each person has to weigh their own situation.
Its definitely not the right choice for everyone.

[kelvinjai]

I am 18 months into a 48 months plan and my new rate is 9%.

Why payoff early?
- You can rebuild your credit sooner (few years ahead).
- If your plan is 100% and if you can pay off the debts, why you still wanna under Ch13?
- Much more financial flexibility if you have your Ch13 discharged. You don't have GREAT credit, but discharged Ch13 is better than active Ch13.
- I don't need to deal with my attorney who never return my phone call.
- I don't need to deal with my trustee who never return my phone call.

Good luck!