Almost Done with Ch. 13

[justbroke]

That is the downside. If you have "extra" money at the end, and are not paying unsecured creditors 100%, then the Trustee will just give it to himself and the unsecured creditors.

[just4me]

No, they can't distribute any more than what the Plan called for! You must continue to make your Plan payments.

As i wrote, the extra is probably the overage of the Trustee Administrative fee. All will be reconciled.

I was in the same type scenario, and I did NOT call my attorney. I just made the two additional payments. I thought I'd let you know what happened in my case...

The additional payments were divided bewteen the unsecured - so instead of them receiving their agreed upon 69% - they got 74%. The trustee also took a larger chunk of change from the remaining amount. (I had two late filers that got nothing!)

It would have also been in my best interest to call my attorney and stop the last two payments, but, I chose the wrong option, and just paid it. I didn't want to "rock the boat" so to speak, and it cost me.

However - my last payment was made on 10/20, 13network showed completed on 11/24 and I finally got my letter from the bankruptcy court 12/08.



Congrats on being DONE... it's a great feeling to "keep" that extra payment every month!

just4me

[srehbeger]

Thanks!!! I talked to my attorney again today and he said all I need to do is wait to receive my discharge letter from the Trustee's office. I think I might cry that day!

[holding on]

Congrats!! Glad to see an attorney being proactive and stepping up to the plate big time.

[justbroke]

FYI...

My modification plan was approved. No more payments! 13network now shows my status as "About to close." This has been a long 5 years but it is finally here. I can't wait. Thanks to all the posters. Although I haven't posted much, it has been so nice to have a place to go to find answers to all my questions!

Thanks again!

Very very good! Nice to hear! Congratulations.

[srehbeger]

FYI...

My modification plan was approved. No more payments! 13network now shows my status as "About to close." This has been a long 5 years but it is finally here. I can't wait. Thanks to all the posters. Although I haven't posted much, it has been so nice to have a place to go to find answers to all my questions!

Thanks again!

[srehbeger]

No...I won't get any money back if I make the last two payments. The plan was set up with 0% to be paid to unsecured. Therefore, any overpayments will be distributed to the unsecured creditors. By paying the $400 fee to modify my plan, it will save me two months of payments.

[krielly]

Um, something seems fishy here.

Why do you want to pay your attorney $400 to modify your plan to end it early? You only have 2 more payments left, and any money left over will come back to you once your trustee reconciles your account.

Unless I'm missing something, you are throwing away $400.................

[srehbeger]

Just to update everyone...I heard back from my attorney today. They said that they were going to file a modification to end the bankruptcy. The $1800 that the trustee's office has on hand will cover the remaining $1100 balance plus the $400 fee to file the modification fee. He said not to make any more payments. They are filing the motion tomorrow. There is no negative effect from this. He said they can do this because my plan was set up to pay 0% to unsecured creditors. So in his words.....I'm finally done. WOOHOO!!!!!

[southerncomfort]

In my case, my plan base was a certain amount and when I started my unsecureds were scheduled to get 0%. However, by the end of the plan, with my income tax refund, I ended up paying 4% to unsecured creditors. It depends on your plan details. If the plan specified paying in a certain amount then I would definitely make those last payments. My trustee did disperse the 4% to the unsecureds even though originally they were scheduled to receive nothing.

[2ndChanceTx]

The other option is to call the Trustee directly and ask them. I have an attorney, but just called the trustee to see if I needed to just pay the balance on my plan base or the full payment amount. I had a tax return applied to a tax liability and it reduced my plan base. Anyway I just paid what was left on the plan base after talking with the trustee.

[srehbeger]

Thanks for the info! I have an email in to my attorney right now. I just hate waiting the 3 days it takes for them to reply. That extra money sure would be nice right now! I will continue to make payments until I hear otherwise. Thanks again.

[Flamingo]

I was just thinking maybe I didn't need to make any more payments. From looking online, there was more than enough money on hand to cover all of the remaining balance and interest.

Is it normal for them to then take that extra money and distribute it among unsecured if you weren't previously paying them?

You need to make all payments to complete your Plan. If you don't send the last two payments in, it will create all sorts of issues (never go by what's online/PACER - call your attorney) so make them and it will all be over shortly. I know how hard it is when you get to that point and you want that cash in your pocket but now is not the time to mess things up.

[justbroke]

I was just thinking maybe I didn't need to make any more payments. From looking online, there was more than enough money on hand to cover all of the remaining balance and interest.

Is it normal for them to then take that extra money and distribute it among unsecured if you weren't previously paying them?

No, they can't distribute any more than what the Plan called for! You must continue to make your Plan payments.

As i wrote, the extra is probably the overage of the Trustee Administrative fee. All will be reconciled.

[srehbeger]

I was just thinking maybe I didn't need to make any more payments. From looking online, there was more than enough money on hand to cover all of the remaining balance and interest.

Is it normal for them to then take that extra money and distribute it among unsecured if you weren't previously paying them?