Trustee Refund Check

[ebok1595]

My 5-year chapter 13 bankruptcy was just discharged and I received a refund check from the trustee of overpayments I made. Oddly, my bank put a 7 day hold on the check. When I asked about it, I was told that there was risk that it would not be paid. I find this very unusual. Has anyone heard of such a thing?

[Happygirl]

Literal same exact thing happened to me last week. I don't have the official discharge but the trustee sent in the note that all payments were made etc. Trustee sent a refund check and I did mobile deposit and was told there would be a 7 day hold due to risk. It went through fine after the 7 days but it was weird. Not sure if it depends on banks but I am Bank of America.

[ebok1595]

I made a mobile deposit too. I wonder if that might have something to do with it. Makes me wish I'd just driven up to the bank. Had a long talk with the fraud department of the bank yesterday, trying to get an explanation of why it was being held. It seems to be because of a risk assessment that it won't get paid.

What really annoys me is that when I made the deposit it told me that $225 would be available immediately, which it was, and the remainder would be posted on the 17th. However, on the 16th the $225 was removed and the entire $1706 was shown as being held. I received no notification of the reason or the time frame that it would be held. Thankfully, I didn't spend that $225, which could have resulted in NSF fees

[Clay3007]

I put mine in the atm at my bank on Sunday and it was in my account on monday. Now the check was under $1000 not sure if that made a difference or not but it was available.

[ebok1595]

I just received a letter from my bank dated September 16th informing me that a hold on my check from the trustee was being held because they "have information that leads us to believe that the check may not be made." I really wonder where that information came from.

[Carmella]

That is insane, sometimes the fraud protections are over the top. But I guess the logical answer is at least the bank is conservative and careful with money and looking out for fraud.

The emotional part is another story.

Hang in there, the check is good. The situation stinks. But you will get that long awaited check and I assume your payroll deduction has stopped, and you have more $ in your pocket.

Congrats on being a BK 13 Survivor!

[ebok1595]

Thanks! Five years and $104k later, it feels very good. Yes, payroll deduction has stopped and I received the discharge. It ended up being a 100% plan.

[Carmella]

ebok1595 CONGRATULATIONS!!!!!

[ebok1595]

Fortunately, the bank released the hold today!

[Carmella]

That makes it an even better day!! Congratulations again!!!!

[Happygirl]

Anxiously awaiting my own discharge. Creditors have 5 more days to protest the discharge that the trustee requested.

[justbroke]

I dislike bank holds. I recently had a check that the bank said the same thing... likelihood that it wouldn't be honored. I guess it means checks from a particular party tend to bounce.

[chb603]

Any idea why a refund was issued from the trustee? I'm just curious because my spouse messed up earlier this year and paid our Ch 13 plan payment twice in one month. We just made our final payment, have our predischarge credit counseling certs in hand and are now officially in the final stretch! 60 months and $50k+ later! Unfortunately, I have $80k in student loans and ~$10k due to the IRS for balances for tax years post filing.

[Carmella]

Any idea why a refund was issued from the trustee? I'm just curious because my spouse messed up earlier this year and paid our Ch 13 plan payment twice in one month. We just made our final payment, have our predischarge credit counseling certs in hand and are now officially in the final stretch! 60 months and $50k+ later! Unfortunately, I have $80k in student loans and ~$10k due to the IRS for balances for tax years post filing.

Our refund was because we over paid. Not every creditor filed a claim, but our payment amount was based on the total amount of debt. We had to pay the amount per paycheck based on the total amount of the debt. Since the claims were less, we paid off earlier than 5 yrs and had an over payment. Ours was automatically deducted from our paycheck which is required in my state so there is also lag time when a payment is made due the timing of the pay period and the timing of trustee notifying the employer.

If all creditors would have made a claim our plan would have gone 5 yrs without any chance of an over payment it would have just ended on the original time line.