How Often Does The Trustee Pay Creditors?

[Jman30]

Hopefully, this is a quick and easy question:

I have been making payments now for 12 months. How often does the Trustee send payments to the creditors? Monthly? Quarterly? Annually?

My mortgage is included in the Chapter 13 (I was behind by one stinking payment) and I am wondering how often they pay them, since I keep getting statements from the mortgage company, but they don't really show payments posting, just entries of dates and a dwindling loan amount.

[JustChillin]

Trustee in my district pays the creditors once a month unless a court order directs her to pay more frequently.

[KCC]

Ours seems to do it only when they get around to it. We pay like clockwork, but the trustee will go some months and not pay anything. And sometimes, the amounts sent have no basis in reality. Our car should have been paid off last month, but the trustee hasn't been making full payments, so who knows when it will be. I find the whole thing dismaying.

[FoolAndHisMoney]

Ours seems to do it only when they get around to it. We pay like clockwork, but the trustee will go some months and not pay anything. And sometimes, the amounts sent have no basis in reality. Our car should have been paid off last month, but the trustee hasn't been making full payments, so who knows when it will be. I find the whole thing dismaying.

It has to be a pretty good business for the trustee when you think about it. They can collect payments from hundreds of cases, keep it in a 3 month CD, keep the interest and then pay the creditor. Years of this must add up$$.

[Jman30]

You know, it is funny you say that, because I recently ordered a payoff letter, just to see how much they said I still owed. It was pretty eye opening just for the fact that show how you have paid so far, how much they have paid out and how much each creditor has received.

And you are right, it makes no sense. I have two car loans on the repayment plan, one with Ford and other with Wells Fargo. The Ford account has received payments, almost every month for a few thousand dollars. The Wells Fargo account (for which the loan is bigger than the Ford loan) has only received approximately $400 over the same timeframe.

So if anyone wants to see how much each creditor is receiving, order a Payoff Letter. It is a good place to start.

[bkfiler]

i have no clue at all, but i wonder if the trustee makes deals with each coompany as to how much to pay, etc. and then keeps more if they can make better deals. i wouldn think so but why wouldnt each creditor get exaclty the same amount, until paid off.