Chpt. 13 went past 60 months and I'll be punished!

[julie445]

My chapter 13 should've ended 11 months ago. I completed paying all my creditors NEVER LATE on a single payment. They let my plan continue despite everything being paid and they continued to pay my mortgage on conduit.

So, I contact my attorney today to tell them I am going on disability due to cancer diagnosis. And that they needed to have my plan discharged because it should've been done 11 months ago.

My problem now...........well because the case was allowed to continue (not due to anything I've done) I won't get a discharge but rather a dismissal.

I am under the old BK law. And my understanding is that after 60 months that is it, you pay off the debt and are discharge, but because the trustee did not do this I will be penalized.

Something doesn't seem right here, how can I be punished and get a dismissal and not a discharge which puts me at risk for being sued now.

Any input? I think I will be contacting my Congressman because this doesn't seem right, I wasn't the one violating Federal BK Laws, I followed them and did my part faithfully, never missed or underpaid a single payment and now I may be faced with more hardship than before I filed my chapter 13.

[EricaCallaha]

That does not sound right. No matter old or new law, you should get the discharge because you paid the 60 months. I would make the attorney fight for the discharge and if he doesn't....get a new lawyer to review your case. You may be up for a court fight, but it is worth it. It is your money and your life. You did your part. Time for the trustee and your lawyer to do theirs.

I hope all goes well.

[julie445]

It makes no sense. They are backed up, my case is allowed to continue, I continue to get garnished, I've OVERPAID the plan, and due to their negligence (the trustee) I get a dismissal and not a discharge. This just reaks of something bad. I have meeting with my attorney tomorrow. I am not buying any of this. I understand being back logged but I don't understand this.

Just want to add, the BK court and trustee are not aware yet. I was just told this was going to happen to me by the paralegal whose worked with the attorney for years. Maybe she is wrong, I am praying she is so very wrong with her advice/info.

[EricaCallaha]

I hope and pray that the paralegal is wrong too. There is no way that you can overpay the plan and then they dismiss. You have fulfilled their obligation. Back log is no excuse to let this go unnoticed for 11 months. Something should have screamed in their computer.

I am hoping for a big fat refund and apology from the trustee and your attorney's office for you. You definitely deserve it. Let us know how it goes tomorrow.

[Nicollette]

You're right, this doesn't seem right. How could the Trustee not be aware that a plan has gone 11 months past the 60 month mark? Please keep us updated on the outcome.

[lrprn]

Truly I'm not being judgmental...just curious...did you keep paying for a plan for 11 months longer that you were supposed to and all that time you didn't call your lawyer to find out why your case hadn't been discharged yet?

What were the grounds for having your 13 dismissed? (And you're sure your case was dismissed, not discharged?)

Did you check PACER to see what the document that your trustee filed regarding your case says?

[BankruptinNC]

You definitely need to talk w/ your lawyer, and I think I would even go further and contact the trustee. If you made your plan payments as ordered, and didn't do anything that would be sanctioned by the bankruptcy courts (such as getting new credit w/o trustee approval), then you should receive a discharge, regardless if the trustee's office is backed up. And I definitely would not go by the advice of this paralegal ~ nothing against paralegals, but there is a reason that the attorney gets paid the big bucks. And you have certainly paid your attorney enough money, so he should be on top of things. And it does seem odd that you would continue to make payments for 11 mths after your plan should have ended. Just out of curiosity, was there a reason you continued to pay???

Take a deep breath, do some investigating, and I'm sure everything will turn out okay. Hang in there...

[woeisme]

Well, this person might have continued to pay because they had a wage order that the trustee's office never changed, so the payroll department wouldn't stop the deductions. But I can't imagine paying for almost a year beyond my required time without a lot of screaming and yelling on my part happening. I would have been calling everyone all the way up to the supreme court (joking, I know they have no jurisdiction) if they took even one extra payment from me, let alone 11!

[julie445]

I have made calls to the trustee and attorney over the past year. Just kept getting told, I had "X" amount of months left. Last week I was told the system was saying I still had 9 months left. Nobody can give me an explanation. My attorney's office keeps blowing me off, and I get told, "We will call you tomorrow". Tomorrow keeps coming and only answers I get is we'll call tomorrow.

My payments are taken out of my check. And they do continue to pay my mortgage on conduit.

I haven't been dismissed or discharged yet. The grounds for getting a dismissal is because they let my case go beyond the 60 months. Something I can't figure out, and don't understand how I would be the one to get punished. I did my part, paid everything off faithfully, never late, never any excuses. (Even went through cancer treatments TWICE in 2 years).

When I contacted my attorney last year and the trustee's office about when I'll be discharged, I kept getting I still had some time left, even though I pointed out to them it was going past the 60 months. So, I have not done anything wrong, but seems like I am the only one who will get the shaft out of others' mistakes or oversights.

So, here I go again.......waiting for that phone call tomorrow. Which I better get, because I was told the attorney is going out of town! I guess if I get blown off again I am calling and filing a complaint with the Supreme Court Disciplinary Council. (Which is what I was instructed to do by the AG's office today).

[julie445]

BankruptNC, there is no reason I continued to pay. At least I have not been told of one and believe me I have asked. People just keep passing the buck, and say they have never heard of this happening. I have done my part, paid my debts, even contacted both parties over the past year about my discharge. I don't know what more I could've done, I thought I was paying my attorney to work on my behalf because he is the one with the law degree.

[holding on]

Here's what I don't understand...if your pay is garnished, isn't it started by a letter from the trustee to your job saying you must take out x for y amount of months?

My payroll dept received a letter saying take out 500 semi-monthly for 12 months then take out 600 semi monthly for 48 months. that means after 60 months the payroll department MUST stop garnishing. they must! Of course by means of screwup the payroll dept could forget to stop it and then you would have to fight the trustee to get money back. But first stop them from continuing to take the money out.

Then planting yourself in front of your lawyer who you paid (no excuses about lawyers being too busy) and demanding an answer would be a good next step IMHO.

[aa06a47]

Not only should you get your discharge, you should get a refund of any amount paid after the 5 year period. Make sure your dates are correct, if the trustee screwed up, it should be easy for you to ask for a court date and the judge should make all well. The trustee may be trying to cover his/her tracks. I would make sure I have documentation on when you contacted the trustee office ect.

[julie445]

I keep calling the attorney and get every time "We'll call tomorrow". I am having my pay garnished. But the papers don't give a specific amount of pay periods or time. Maybe that is because I am in a differrent state.

I was told by the attorney's office that the trustee will possibly get in trouble for this so that is why they go for a dismissal rather than a discharge and that the courts usually side with the trustee. I also have a feeling that the attorney would get into some type of trouble as well. I was told they have not heard of this happening before. So here I go, I am about to call the attorney's office yet once again.

[holding on]

So your payroll department has a letter that just says start taking out $x from paycheck until told to stop. it still amazes me how different states can be.

with a dismissal, doesn't the trustee have to go before a judge and give a reason why for the dismissal? I can't imagine that 'we where too busy so we are just dismissing her case' would fly before the judge.

[ready2puke]

Hello? Big Fat Refund !!!! Holey Smokes not only should you get a BF Refund

I hope and pray that the paralegal is wrong too. There is no way that you can overpay the plan and then they dismiss. You have fulfilled their obligation. Back log is no excuse to let this go unnoticed for 11 months. Something should have screamed in their computer.

I am hoping for a big fat refund and apology from the trustee and your attorney's office for you. You definitely deserve it. Let us know how it goes tomorrow.

You should get it with interest !!! This really pisses me off...Not fair
Question why did you let this go for 11 months???? I would of been going nuts after the 2nd month...