Confirmation Delays

[bobm]

I filed for Ch 13 in late December 2008 and had the 341 hearing in February. Our original Apr 09 confirmation date was continued until Jun 09 due to delays is resolving the Trustee's objections to the plan as submitted by my attorney. Now the June date has come and gone with one declaration left to file but the new confirmation date is in August.

I am getting a little frustrated at the slips two months at a time tut my attorney says that is normal here as the Trustee is overloaded with cases (Northern District of CA). He says he has other cases with much longer times before confirmation but I am getting antsy. I would like to have all the objections cleared but it seems like my attorney and the Trustee don't work a case until two weeks before a hearing.

I continue to pay on my plan and the trustee is making payments to my secured creditor but no payments to the unsecured yet. I am building up a balance in the account - what happens when the plan is confirmed? Does the money in the account go to the secured creditor first and pay off the car or to priority credictors (taxes)? I believe I then must pay to the plan for 60 months after confirmation - correct?

Thanks for your help. I will feel a lot better once the plan is confirmed and my payment is locked down.

Bob

[justbroke]

I wouldn't worry so much about plan confirmation. You just continue making your plan payments! In many Districts, plan confirmation is a formality. It does not stop your need to make your plan payments and be current.

I continue to pay on my plan and the trustee is making payments to my secured creditor but no payments to the unsecured yet. I am building up a balance in the account - what happens when the plan is confirmed? Does the money in the account go to the secured creditor first and pay off the car or to priority credictors (taxes)? I believe I then must pay to the plan for 60 months after confirmation - correct?

The Trustee will hold the money until the confirmation. At that time, the Trustee will pay priority creditors (Trustee, your attorney, IRS), then the secured creditors. Usually, the unsecured creditors aren't paid until the end of the plan (if they're getting anything).

Generally speaking, if a secured creditor has filed a claim and it's not objected to, then the Trustee will make payments to Secured and Priority creditors well before confirmation. This is so that the Secured creditors don't lose any equity (under the "adequate protection" rules).