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It ain't over until it's over!

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    It ain't over until it's over!

    My BK-13, 60-month plan was confirmed February 2017. The originally confirmed plan included only 19 "unsecured" creditors and a 47% pay-off rate for each approved claim balance. Of the 19 originally scheduled "unsecured" creditors, only 12 creditors timely filed proofs-of-claim. In May of this year, or 52 months into the payment plan, my Trustee's interim case report showed that at the pay-off rate of 47% all 12 approved creditor claims would be paid-off...or stated another way.. the "principal due" balances equaled $0.

    Seeing this I foolishly became excited by thinking that my Trustee would soon be sending a notice that total payment under my confirmed 47% plan was completed 8-months early. I recall planning how I was going to manage the extra $3000 (rounded up) per month of soon to be available cash...LOL

    All information that I reviewed instructed that payment should continued to be made to the Trustee until you receive that golden notice of completion of payment. So I continued to make my monthly payment for June, for July, for August. With each additional payment my "balance due amount" was being reflected in the Trustee's interim case report as -$3000 to -$6000 to -$9000. LOL I'm thinking that I'm going to love receiving that large refund check from the Trustee along with the notice of completion of payment. The Trustee's interim report continued to reflect $0 balance due for all 12 approved creditors claims.....but when will I receive the notice of completion?

    Guess what....when I checked the Trustee's interim report for September it reflected that the pay-off rate was increased from 47% to 53%. And, the principal balances due for the 12 approved creditors no longer reflected a $0 balance, but reflected additional monies owed. My Trustee decided that the 12 approved creditors should get additional payment beyond the originally confirmed 47% plan, which would have ended in May... 8 months early after 52 made payments.

    So a 60-month payment plan means 60-months of payments. It ain't over until it's over!

    This is exactly how it works in a less than 100% Plan, having nothing to do with what a Trustee decides.

    In a less than 100% Plan, the Plan is really a "pot" Plan not a "percentage" Plan. You pay your disposable income for the commitment period and the money goes where it goes. If only 12 out of 15 creditors filed timely claims then those 12 creditors will get a higher pro rata payment. Your commitment period does not change and, unless you pay 100% of the allowed claims in less than that time, you do not get out early. If you were below median income the commitment period was/is 36 months. If you were above median income the commitment period was/is 60 months.

    There are other factors in determining the length of the Plan which are case specific. Once such factor is the value of non-exempt assets along with your ability to pay so that you can keep the assets. Another could be the ability to modify the confirmed Plan to reduce the pot and and the failure to do so. The Order Confirming controls until it is changed.



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