In Final Year of CH13 but Can't Tell How Much I Owe

[granted]

I have access to the NDC site and it shows a total Principal Owed of $6k and my lawyer's asst confirms that is how much he sees as owed as well. However, my plan base shows an amount that is equal to my monthly payment amount times 60 months. I have 11 months remaining, I thought, but knowing that it is only $6k would be wonderful news. The Interest Owed amount on NDC is $0.00. There is a $21k difference between what is shown in the Plan Base and the $6k that shows in the Princ Owed field (and lawyer estimates). Is this large discrepancy because many creditors never filed a claim? I would love to know that I only owe $6k more!!

[justbroke]

Never trust what you see on the NDC. It's solely a clearinghouse for the Trustees because they have to maintain some level of information at a national level. The only way to tell what you have left on your BASE PLAN is to contact the Trustee's office for a payoff amount. Remember, that the PLAN BASE is the "minimum" that you must pay. Additionally, any tax refunds or other surrendered income (bonuses, etc), will likely increase the PLAN BASE or not be added to the PLAN BASE.

[granted]

I am still waiting to hear back from the Trustee but their site matches the NDC site. If the creditors total claimed amount is less than the plan base help me understand how the plan base is the minimum to be paid.

[justbroke]

The plan base is a combination of the Chapter 7 Liquidation Test (Best Interest Test), attorney fees in plan, additional attorney fees in plan, administrative fees (including the Trustee percentage), adequate protection payments and/or secured debt payments.

Were you in a 100% plan?

[granted]

Yes, a 100% plan (chapter 13). I surrendered the house so that is the only debt not 100%. My understanding on the surrendered house is that I won't owe anything even after all other creditors are paid in pull. Is that correct?

[justbroke]

Once you receive a discharge, you won't owe any deficiency for the surrendered home.

Since you are in a 100% plan, you would pay 100% of the allowed unsecured claims, attorney fees in plan, additional attorney fees in plan, administrative fees (including the Trustee percentage), priority unsecured debt (IRS, taxes), and any secured debt that was to be paid (adequate protection or regular payments).

As I was saying, I usually don't trust the numbers and it's why they Trustee does an audit at the end. Your PLAN BASE may have been based on every creditor filing a claim and for that claim to be allowed.

[granted]

Great information! Thank you!!

I have added up $19k that is shown as scheduled amounts but looks like it was never claimed by unsecured creditors. I am only assuming this because it has $ amounts in the scheduled amount column but $0.00 in the claimed amount and $0.00 in the principal owed amount column. Maybe I am getting my hopes up but this $19k that might not have been claimed happens to be the difference between what I thought I owed and what the attorney says is all I have left to owe. He says if I pay off the principal owed amount of $6k then they will start the audit early and I won't have to wait until the full five years is up.

[Quicke23]

I'm in a similar boat. I'm at 100% and I saw that many creditors did not file a claim. Instead of the full 60 months, I calculated from NDC (and the number that filed claims) that I should be done by month 40. I'm in month 20 now and it seems to be moving pretty quickly. Have you been checking your credit along the way? I noticed that one of the creditors that did not file a claim, is still adding interest and has continued to report to Experian. The notes say "Chapter 13 BK Plan"; but I checked with my lawyer and NDC and the creditor is listed; but indicates that they did not file a claim.

Getting close to the end of the plan, do you know if you can pay a lump some to end the plan early? Is there a benefit? Less trustee fees? I notice the trustee takes fees for each disbursement.

[LadyInTheRed]

granted and Quicke23, as justbroke said, never rely on what you see on NDC. Check PACER or ask your attorney to get an accurate list of filed claims.

If you pay all secured and unsecured claims 100%, your plan will end early, but it won't reduce the trustee fee. The trustee fees is based on the amount distributed to creditors, so a 100% payment must include enough to cover the trustee fees. The benefit is that you would be done. Also, if the plan pays interest on secured debt, you will save interest by paying early.

[Quicke23]

Thanks again LITR! All my secured has been fully paid (priority) and payments are going towards the unsecured now. So far, I have paid a total of $49k and the trustee has collected a little over $2k. That is less than I was expecting. Is it usually a constant rate or can it fluctuate?

[LadyInTheRed]

The way I understand it is that the Trustees receive a certain percentage, but the total salary of a trustee is capped. If they reach the cap, the percentage for all of that trustee's cases may decrease. In my case, the trustee received exactly 5% of what I paid, which is the maximum rate allowed under Section 326(b) of the Bankruptcy Code: https://www.law.cornell.edu/uscode/text/11/326

[granted]

I wanted to follow up on this earlier post of mine. It turns out that the amount I was seeing on the NDC site, under principal owed, was the actual remaining amount due. Over the last week, I have been working with my legal assistant, an auditor, and the trustee and they all agree I only owe the amount shown and then the audit and discharge process will begin. I just made that final payment today!