End of plan--car payments

[jjj117]

As of the end of July I have reached my 60 months in my 100% Chapter 13. In June I was able to get my attorney to get the deductions of my payments from my paychecks stopped as I had over paid my plan at that point. Part of my plan is a vehicle which I acquired during my plan. The trustee made the vehicle payments out of my the account the last week of every month. I received a letter from the trustee at the end of June stating that my plan is going through a final audit and I was responsible for making my own car payments effective August 09. The trustee made no payment on my vehicle for July. Is this going to screw me and make me a month behind on my car payments once I get my discharge or are they probably going to make that payment once the review is done? I really don't want to get off on the wrong foot with a late car payment after 5 yrs of this. Anyone have a similar experience? I am in the Pittsburgh region if that helps.

[justbroke]

You should reconcile your Plan and payments as well. The Trustee is responsible for paying the secured creditors the "base plan" amount, but you need to insure that this was enough to satisfy the automobile loan.

If the Trustee stopped taking money from you (by wage deduction, or by voluntary payment), then you should insure that the car is actually paid off. If your Trustee uses 13DataCenter/13network, you can go there and see how the disbursements were and what the "claim" amount was (the claim amount include all interest over the plan life). Reconcile it to make sure the Trustee paid enough to the auto lender. If it's missing a payment, contact the Trustee and tell them you're going to make that last payment.

Automobile payments usually don't extend pass the plan duration. It may be a generic statement from the Trustee as well. They'll usually tell you that all secured payments on mortgages and motor vehicles (and the like) are the responsibility of the debtor between the plan end and the actual discharge and close. \

Many debtors mess up in this period, which I'll call purgatory, because they think they need to do nothing. If you have secured debt, you may need to continue payments on that secured debt. Follow the guidance I provide above, and that should help alleviate your concerns, and to insure that you are not missing any payments to a secured creditor.

[caj0524]

If your Trustee uses 13DataCenter/13network, you can go there and see how the disbursements were and what the "claim" amount was (the claim amount include all interest over the plan life). Reconcile it to make sure the Trustee paid enough to the auto lender.

I'm confused jb...
My plan is written to pay the principal plus the till rate interest.
The creditor's claim is for the principal plus all unmatured interest.

At the end of the plan, the principal + Till% will be paid off, but those payments will still be $1,800 short of what the creditor's claim is for.

How does this get reconciled at the end?

[justbroke]

I'm confused jb...
My plan is written to pay the principal plus the till rate interest.
The creditor's claim is for the principal plus all unmatured interest.

At the end of the plan, the principal + Till% will be paid off, but those payments will still be $1,800 short of what the creditor's claim is for.

How does this get reconciled at the end?

The creditor's claim is always what they filed. If you filed a Motion or otherwise included in your Plan to pay the principal at the Till rate, then what's CONFIRMED is what applies.

That's why I suggested reconciling. Just to make sure the Trustee is paying just the Till rate. What needs to be reconciled is the Trustee's "plan" versus your plan.