Unsecured Base Hold

[jferrara34]

I am at the end of my Chapter 13 bankruptcy and we have a balance on hand of $11,800, then all of a sudden a new a new claim pops up on the NDC.org web site for $11,320 called Unsecured Base Hold . Has this happened to anyone else? And does anyone know if they every refund any of the balance on hand?

[LadyInTheRed]

Sounds like the trustee plans to distribute that amount to unsecured creditors. I doubt any claim was filed. You will only get a refund if 100% of unsecured claims are paid and there is still money left.

[andy158]

Similar situation here. NDC shows all unsecured claims are paid and the car being paid through the plan has a balance of $512 with 5 more months to go. We will pay into the plan and additional $5,775 over our original plan base. The original claims filed will get the additional money divided among them because we are not in a 100% plan.

[jferrara34]

Well I hope they at least put that money towards my student loans. My status changed over to NPOC, they told me that means they are in the process of closing it out and we will be done We filed in Feb 2009.

[grndmom53]

I think this is going to happen to us! our secured is now paid, now there is a credit balance on hand of $1700. We make our last payment in April. $585 a month. I thought it was strange that the last dispersement from the trustee was in December.

I am now sure this money will go out to our unsecureds in our last month. I guess it makes sense for the trustee to pay it out at one time!

I was kind of hoping we would get the credit balance back!

[159515951]

This never makes sense to me. Don't the trustees do any math at the beginning of the payback plan? It wouldn't be too tough to figure out that there's going to be a large surplus at the end.

[LadyInTheRed]

This never makes sense to me. Don't the trustees do any math at the beginning of the payback plan? It wouldn't be too tough to figure out that there's going to be a large surplus at the end.

Things can change. A loss of income could result in a lower payment or a huge tax refund could result in additional funds paid to the plan. It makes sense to wait until the end of the plan to pay unsecured creditors so the calculation of who gets what only has to be done once and there is no chance of overpaying any creditors.

[159515951]

Things can change. A loss of income could result in a lower payment or a huge tax refund could result in additional funds paid to the plan. It makes sense to wait until the end of the plan to pay unsecured creditors so the calculation of who gets what only has to be done once and there is no chance of overpaying any creditors.

Thanks for the clarification -- that makes perfect sense.

[grndmom53]

Things can change. A loss of income could result in a lower payment or a huge tax refund could result in additional funds paid to the plan. It makes sense to wait until the end of the plan to pay unsecured creditors so the calculation of who gets what only has to be done once and there is no chance of overpaying any creditors.

yes, I understand this now! Thanks for explaining, I really love this forum.

[spidge]

I don't see where there is enough information to determine what will happen to the balance after the base is paid. Is OP under/over median? Is he at the end of a five year or three year plan? Is he at 100 percent payback?

Did I miss something?

[jferrara34]

Over median, 5 years and 44 percent payback

[LadyInTheRed]

I don't see where there is enough information to determine what will happen to the balance after the base is paid. Is OP under/over median? Is he at the end of a five year or three year plan? Is he at 100 percent payback?

Did I miss something?

Good point, spidge. I was too quick to assume he was an over median filer. An under median filer who has been in a plan for 36 months or more and paid all necessary amounts (arrears on secured debts and the value of non-exempt assets, for example) could get a refund without paying 100% of unsecured claims.