question about last payment in a chapter 13 bankruptcy

[howtohandle]

Hi All,

I have a question about the Chapter 13 and the very last payment. We have a 57 month payment plan . We did our pre-discharge couseling requirement and in September I will be making the last payment on this plan....

what happens after that? I mean do I just stop paying after the 57 months? they disburse payments the last day of the month. Do they notify me? what happens exactly.

[kornellred]

Contact your attorney or the trustee. You should have received some form of notice from the trustee about the coming fulfillment of your plan payment obligations.

[howtohandle]

Well I have received "nothing" at all. And my attorney, well, he just never answers me. I'm wondering if I get this in sept since my payment is due the 17th of the month and they don't pay creditors until the last business day of the month.

[newbie2]

Since you make the payments yourself (not payroll deducted) I would call the trustees office and ask them for the procedure on what they do / how they calculate the last payment method. It could very well be that they tell you to stop making payments after a certain date, OR they could want you to keep making payments until they do their internal audit of your case. (Over payments are paid back to you.) Best to be safe and contact the trustees office or your attorney.

[jmh]

I was just in this boat myself. I visited with my attorney. He only advised me to make sure I had requested a payoff statement from the Trustee since I was paying off early, and also that I had my financial course completed. My payoff amount reflected what is owed on claims plus the maximum allowable Trustee fee of 10%. Their current rate is actually less than 6%, and the lady at the Trustee's office said in those cases they just refund the difference when all is said and done. The effect was that my last payment was higher than I expected.

Don't wait on that financial course, get it done today as it's necessary to receive a discharge. I've heard a couple stories about paid-off plans being simply dismissed since the financial course wasn't turned in. That's hard to imagine, as once paid you sign some sort of compliance letter saying that you've done everything required, and from what I gather they're supposed to notify you if there is some shortcoming with your paperwork at the end. But better safe than sorry all the same.

My plan was a 100% so he didn't see any difficulties & I have all my ducks in a row. Once the payment clears and I sign the compliance letter and that's it, just a wait for the discharge itself. Then the real fun begins with the credit repair.