45 weeks to Go!

iVillage Member
Registered: 10-01-2008
45 weeks to Go!
1
Fri, 04-12-2013 - 4:16pm

Carolyn:   

What is the ending weeks procedure?  What do I need to do or to make sure is done when we finish our Chapter 13 payments?  

Thank you!

iVillage Member
Registered: 03-17-2003
Sat, 05-04-2013 - 10:50am

Norma,

I'm not sure if you are still using your lawyer or not.  Once your Plan is underway it isn't uncommon for the lawyer to not do much of anything other than direct you to contact the Trustee. That's what my lawyer did and that's what others have shared.  LOL. But, you have an attorney and my first recommendation is to first ask the lawyer how to proceed, what to expect, etc.  You know that already Norma so I'm writing that for the benefit of any reader.

Here's what you can do.  Call the trustee's office and tell them according to your records you are just about paid off and you want closing audit information. My trustee asked that I fax her my request, which I did within a matter of minutes since the rep said she would be waiting for my fax.  Now that you are requesting information you can ask your Trustee for directions on how to proceed - do they want you go make the final month payment or what? If you are directed to make the final month payment, then enclose a letter to the Trustee memorializing your conversation and keep a copy of the letter in your file. That's what I did. I did not want to run the risk of defaulting on my Plan payments right when I was getting ready to be discharged. Keep making your Plan payments. It took me 2 requests before my Trustee got back to me and that was 2 months that I overpaid. Not a problem.  Bottom line is until you are told otherwise, keep making your Plan payments.

Next you can anticipate receiving a Status Report, which is no different that the ones you receive periodically (January and July in my jurisdiction) from the Trustee's office, in the mail. It will have a payoff amount that must be received by the Trustee's office no later than a specified date. That will be the last payment to the Trustee. Go ahead and pay that amount. I noted "final payment" on my check. It makes no difference if you have over paid to the Trustee, that is the amount their office has calculated for closing and addressing all needs (such as interest calculations, etc.) to wrap up your case. The Trustee then conducts the closing review and, if all is paid off and in order, the Trustee will proceed with discharging your Chapter 13. 

In my case, my Trustee told me to continue making my monthly payment until they ran my case and sent me a letter with the results. When I received the letter from the Trustee, they did not include my last plan payment, so according to their records I had one more month to go. I knew I was paid off, but I had to comply with the Trustee's statement, so I paid the money and that was my last check to the Trustee. I have acutally overpaid two monthly plan payments and that money was refunded once the Chapter 13 was discharged. 

Congratulations Norma!

Carolyn