what happens when you pay off loans while in a 13?

[bigreddog]

We filed 2 yrs. ago. At that time, Our attorney had our car lease and my John Deere tractor and Bobcat Excavator as being paid outside of the plan. With all of this and our expenses, our payback to unsecured was 11% and a pmt. to our trustee was manageable. But here's my question.
The car lease was paid off within 7 mts. The John Deere just got done. And the Bobcat Excavator will be finished in 10 mths. Although that freed up those payments, our business has dived and we're struggling to keep up on everything. People who owe us for work done who have always paid us on time are all of a sudden being very slow.
In two years, all we've gotten from our trustee is notice of assignments of debt. No requests for tax returns. No monthly operating reports. No question about the finished lease and tractor. We got a $3300 tax return that paid taxes and we received our $1200 stimulus check. Our lawyer said we should be thankful and leave it alone. But I'm afraid someday before the plan is up the trustee will spring this stuff on us. Any thoughts?

[Flamingo]

Some thoughts...

The John Deere Tractor is all yours and so is the Bobcat Excavator when those payments are completed. If they were cars, you would have received the title in the mail from the lender upon final payment. I am not familiar with car leases but if that was paid off outside the plan that bill is finished also. Remember, however, that these paid off debts are still considered to be part of your bankruptcy filing and will show up as such on your credit reports even though you paid them outside of the plan.

If your attorney advised you all is OK, all is OK. You can ask him to send you a printout of how your Plan stands at the moment or I am sure you have seen other posters on here subscribe to PACER to view their matters. However, if you are struggling with your Plan and feel you might have difficulty with making plan payments or finishing the plan, consult with your attorney prior to missing any payments.

When you received your tax refund and stimulus payment, did you consult with your attorney at that time whether or not you could keep those funds? It appears you may have since your attorney said all was OK so it appears you don't have anything to worry about as to future problems from your Trustee. If you were required to submit tax returns each year, you would have been informed or could get a request at any time during your Chapter 13 to produce them. You just need to provide them when required/asked.

[bigreddog]

Thank you Flamingo!! I was just worried that the trustee would've seen that the lease only had about 10 months to go, the John Deere 12 and the Bobcat 24. And as each got paid off they'd come after us to up our bk payment by the amount of each pmt. But The Lease has been gone a year, the Deere was pd. off 2 mths. ago and Bobcat will be done next Jan. And no call or notices. Our Pacer Account shows nothing but the payments in and the payments out.

Yes things are getting hairy. We were absolutely sure we couldn't make our Wk.Comp Ins. pmt or payroll this week. But just enough money came in to cover it. But, we're behind on 3 wks. worth of payroll taxes and haven't paid our state Co. taxes. We've had enough taken out to cover our SE and Income tax.
I guess we're just waiting for the knock on the door. I've emailed my Lawyer who sends me a read receipt but have recieved no answer to our concerns. I wonder if has "anything" to do with him having his attorney fees paid 1st. We have a zero balance with him. I've kept all the emails to prove that I consulted with him. And his reply was don't worry about it. The one email that I sent him in a panic, he had us come in and he told us that we may convert to a seven but wait to let our income drop as it does every yr. between Nov. and May and to also see what happens about the pending 2nd/3rd mortgage cramdown changes.