End of Chapter 13

[Abbey]

anybody out there that made it to the end of a chapter 13 what happens?
there are tons of info about the start of a chapter 13 plan but nothing about the end. I have a 36 month plan and I've paid 36 months now my attorney says well it's 36 months from confirmation not from when I started paying which was day one when I filed so now the 36 months has turned into 39
nice for him and the court forgot to mention that little tidbit upfront so after "39" months how long is it usually take to get this over with I assume there will be a audit then will i get my discharge and wage garnishment stopped. thanks for any info...just seems to never end 36 now it's 39 god knows how long the court will drag this out, how anyone could last 60 months is beyond me, oh wait wouldn't it be 63

thanks for letting me rant a bit

[optimistic1]

your attorney doesnt know what he is talking about, which is nothing new, it starts from first payment, not from confirmation. Your commitment period should be clearly defined in your plan when you file your petition, it will state that you are making X payments in the amount of X dollars. I would seek clarification from the trustee's office, and call them directly, try calling your local bankruptcy court clerk and ask them for the contact info. And after you get clarification, call your attorney and tell him he is a dumbshi*, because if what he is saying is true, then god help anyone who doesnt get confirmed for several months as some have, as you would be paying month after month for basically nothing at all, other than giving more money to creditors than you have to. These so called BK attorneys need to go spend $30 at Barnes and Noble and buy a Chapter 13 BK book.

[athomas]

Interesting question. I have been curious, as I am currently in month 56 of a 60 month plan...but my plan base won't be met until 60 mos. from the date of confirmation. Not one of my unsecured creditors filed a claim, but our district allows for the payment of late claims, so there could be some come in at the 11th hour. Unfortunately we were also informed that it can take a full year for the trustee to finish the "accounting" of our case so that we may receive any additional funds leftover and our discharge. This doesn't seem normal to me either, it's been 60 months...how can they make it be 72? Even if I am done paying I want my discharge so we can sell our home. It doesn't seem like it works this way everywhere else...

[rrockinggramma]

Well as in all things every district is different. I discovered to my dismay that my 36 month plan was really a 39 month plan because the time period started from date of confirmation. That was a blow. But I failthfully paid for the 39 months. Then on Nov 3, 2008 my payments were stopped. However, I was not discharged officially until March 3, 2009.

In Michigan, it is figured from date of confirmation. Then the payments stop. Then the final checks are disbursed (mine were sent on on Dec 19, 2008) then the creditors have 30 days to object, which was the end of January. Then the trustee turned it over to the court on Jan 30th 2009. Then I waited until March 3 for discharge to show up. It was slow and painful wait. I was beginning to think it would never come. But it finally did.

The only good thing is that I wasn't making payments but I couldn't really start my new life until March 3 of this year.

[kcsmom76]

Here is my experience.

First off, check out 13datacenter.com. Register for an account with your name and case number. Then your 13 file will come up.

Then go to the page that shows how much you owe everyone. In the principal owed column, add up all the totals and that will give you a ballpark figure of what you still owe.

We filed a 48 month plan and ended up paying 57 months. This is because if you file your cars, you are still paying them interest since it is secured debt. My trustee would pay more in interest than principal to these people.

We finally completed at the end of April and are still waiting for discharge, but we did get our refund check.

I hope it all works out for you.

[Flamingo]

As long as there were no modifications or changes to your Plan during your term, you are required only to pay what is indicated in your Plan unless there is specific verbiage in your Plan; however, there are certain districts (as one poster indicates above) that apparently rely on the confirmation date as the beginning of the Plan and any extra payments are refunded at the close/audit of the Plan. There was a major discussion on this point in this forum about a year or so ago on this subject so do a search of the forum.

For anyone in a Chapter 13 approaching the end of the Plan, when you send in your last payment, contact your attorney advising that you did so and ask for further instructions as to your specific plan. If there is a wage order in place the trustee will have to stop it. Usually when you are represented by counsel the Trustee will not deal with you directly but only via your attorney so get clarification as to your matter as to why you have to pay beyond the end of your Plan. After your last payment is received the Trustee will send out a letter to you indicating the steps of the process that will be done over the next few months and what to expect. He/She will audit the Plan, send out any remaining payments to creditors and send paperwork to all creditors for them to sign that they have been paid in full according to the terms of the Plan. When the signed forms are received back by the Trustee and the audit is complete, you will receive your discharge and any overage you paid into the Plan.

[catalina2225]

Here in Tucson, it was in my letter from the trustee that my chapter 13 ends on the date of confirmation. That means my 36 month plan is really a 41 month plan. Bummer.

[optimistic1]

Here in Tucson, it was in my letter from the trustee that my chapter 13 ends on the date of confirmation. That means my 36 month plan is really a 41 month plan. Bummer.

not so, because you should be receiving a refund, I dont quite understand where they are coming from on this issue, I will call the local trustee office on Monday and ask them about this topic.

[Abbey]

not so, because you should be receiving a refund, I dont quite understand where they are coming from on this issue, I will call the local trustee office on Monday and ask them about this topic.

yes you get a refund if any funds are left but that's not the issue, no one has time for those who merely told to wait and I've been told to wait 3 months longer till they will begin the audit which should take a hour but no doubt it will takes weeks if not months. still this whole situation was brought on by my mis-understanding of unsecured credit 3 months is not the end of the world
I hope anyone starting their plan will know to ask upfront.

[Billssuck]

yes you get a refund if any funds are left but that's not the issue, no one has time for those who merely told to wait and I've been told to wait 3 months longer till they will begin the audit which should take a hour but no doubt it will takes weeks if not months. still this whole situation was brought on by my mis-understanding of unsecured credit 3 months is not the end of the world
I hope anyone starting their plan will know to ask upfront.

My goodness....I had no idea that the plan could be longer than what it says it is. I will make my first payment in a couple of weeks (3 year plan) but don't think I'll get confirmed for another couple of months. Our 341 is on 6/17. At least now I can ask these questions early on so that I can be prepared. I really didn't realize it took so long to get the official discharge.

[Abbey]

My goodness....I had no idea that the plan could be longer than what it says it is. I will make my first payment in a couple of weeks (3 year plan) but don't think I'll get confirmed for another couple of months. Our 341 is on 6/17. At least now I can ask these questions early on so that I can be prepared. I really didn't realize it took so long to get the official discharge.

always look to the future I have only 11 weeks left, can't wait to get this burden off me and resume my life without credit cards...never again

[oldhack]

Interesting to see how much variance there is from area to area. Interesting, too, to find that the Middle Tennessee district seems pretty efficient, from my experience.

• My (old law) plan was submitted in 4/05 and confirmed 5/05 for 42 months, and paid 80% to unsecured. It wound up being 43 months, but that was because I was excused from payments one month during the first year, not because of any modification.
• I heard from my trustee directly only once during the entire term, in response to my direct email to him near the end asking about closing and discharge procedures (his answer was clear and complete, and also turned out to be accurate).
• I paid last scheduled payment 11/08, though four more payments were made -- three refunded by the trustee's office, and one by my employer, who withheld it just prior to receiving the order to stop forwarding it, but before sending it to the trustee. All of that took less than six weeks. The case was marked 'closed' at 13datacenter.com Dec. 30, and discharge was Jan. 9, 2009.

So, from filing to discharge took 45 months for a 42-/43-month plan.

[optimistic1]

I can only guess that the reason is because the Trustee's office probably has way too many accounts to handle, so it takes them months to get around to it, especially nowadays.

[sassiebaz]

If my 36 month plan is going to turn into anything longer, I will convert at the 2 year mark. That is when we will be eligible for a chapter 7. I don't want this dragging on any longer than needed! What is the step for converting? Do I have to use the same lawyer? Can I have our lawyer dismiss the chapter 13 and then get a paralegal to file the 7?

[oldhack]

If my 36 month plan is going to turn into anything longer, I will convert at the 2 year mark. That is when we will be eligible for a chapter 7. I don't want this dragging on any longer than needed!..

Boy, I'd hate to see that! You'd be more than doubling the amount of time the BK will be on your credit reports.
Chapter 13s are reported 7 years from date of filing/confirmation, so you'll only be five years from that record disappearing from your CRs at the 2-year mark.
Chapter 7s are reported 10 years from the date of discharge -- so, you'll have the 2 years it's already been there, plus 10 more. Talk about 'dragging on'!
Has the two years already in the Chapter 13 plan been so unbearable that the short-term release is worth the long-term hit?