Information from someone MD that is has been through the last part for Chapter 13 BK

[chasasha16]

Hi all I am on the what I hope to be the final stretch of my chapter 13 bankruptcy.I am in the process of buying a house and I have pretty much been approved for my FHA loan but the last step for me is the letter of completion from the trustee. The underwriter said that she would accept that even though it has not been discharged. So I am suppose to close on April 8th 2016. My question is how long does it normally take for the trustee to do the letter of completion after you have made the final payment. I made the payment on Feb 22 they office explained to me that since I paid by check they have to wait 30 days to make sure that it clears. Thirty days is March 22. I know that she does not do the distributions to my creditors until the last day of the month. Do you think that I will get the letter before my closing? Or do you have any advice on how I can help this process move a little faster.?

[justbroke]

I thought that, for FHA loans when you're in an active Chapter 13, you only needed a letter from the Trustee indicating that you have paid on-time for a period of 12 months. The only other condition is that you are in an active Chapter 13.

There is absolutely no way anyone, but the Trustee, can tell you when the Trustee will produce the letter. They are pretty strict when it comes to completion.

As an aside, I guess you are so close to the end, you were asked for a letter of competition rather than a letter of good standing. (I learned something new today.) Can you ask the underwriter (bank) whether a letter of good standing is sufficient (since your Chapter 13 isn't closed).

[Katehamilton]

Did my refi while I was in chapter 13 and good standing letter was sufficient, I imagine it would be the same?

[spidge]

You won't like my example. I am in the central district of California. My notice came on Feb,25,2016 and the plan was considered complete(all required payments made) on Nov,30,2015. The final distribution to creditors was done on Dec,9,2015 but I believe the reason it took so long to get the notice is for the trustee to wait for all checks to clear, including my small refund. I don't remember receiving any other notice before this one which included the trustee's request for discharge.

I hope your letter will suffice and good luck.