Hypothetical: who gets the money?

[catleg]

Let's suppose that you pay off an unsecured creditor in full within the 90 days before you file a chapter 13.

You disclose this on your forms, the trustee files a preference claim and the creditor has to pay back the money (some or all).

Now let's say you stop paying on the chapter 13 after 2 or 3 years, and your case is dismissed.

Who gets the money?

In other words, is there a way for the creditor who got clawed back to reclaim the money?

Would they be first in line, last in line, or not in line at all when whatever money in the plan is distributed?

[HHM]

Frankly, we don't appreciate hypothetical questions. They are too difficult to answer because there is no background and in BK, the individual circumstances make all the difference. Hypo Questions turn in to never ending threads of what if's (because there are no specifics).

But...In general, Chapter 13 money is distributed on an ongoing basis, so when you default on the plan, there is usually only a small sum to distribute. Nothing changes in the distribution.

[justbroke]

What HHM wrote.