Disbursement of funds by trustee

[olivies]

How are pre-confirmation and post-confirmation payments to creditors figured? I'm having a problem with the fact that our trustee has $8600 of funds on hand for our account, and only the secured creditor (vehicle) is getting paid monthly- and the payment is "wonky"- it was $253 a month pre confirmation, then last month I was confirmed but they paid $62, now the payment is $644. The secured loan is charging me 7.5% interest. The IRS is partially secured at 4% interest but they're not getting paid yet. Not too happy about the fact that I'm paying in, not earning interest naturally, but being charged interest while the money is just sitting there. EVEN if the motion to extend time to cure for the two payments we are behind on is not granted, I don't get that $ back according to the trustee's website. So why is it not being disbursed?

[forgotten]

How are pre-confirmation and post-confirmation payments to creditors figured? I'm having a problem with the fact that our trustee has $8600 of funds on hand for our account, and only the secured creditor (vehicle) is getting paid monthly- and the payment is "wonky"- it was $253 a month pre confirmation, then last month I was confirmed but they paid $62, now the payment is $644. The secured loan is charging me 7.5% interest. The IRS is partially secured at 4% interest but they're not getting paid yet. Not too happy about the fact that I'm paying in, not earning interest naturally, but being charged interest while the money is just sitting there. EVEN if the motion to extend time to cure for the two payments we are behind on is not granted, I don't get that $ back according to the trustee's website. So why is it not being disbursed?

The trustee disperses payments as they see fit. Secured creditors are given adequate protection payments because of the declining value of the collateral (such as a vehicle). As you saw though, the payments are sometimes sporatic.

Your IRS debt and vehicle will be paid off by the end of your plan, unless you are in a 100% plan that just means less to the unsecured creditors. Even if you are in a 100% plan the extra interest from the sporatic payments is really negligible compared to what you are saving in interest on your unsecured payments.

In short... nothing you can do about it, and the creditors know they just have to wait for the trustee. I have made 8 payments, there is $7,600 in my account and not one penny has been paid out yet.

[CCB35]

it took my trustee a while to pay the unsecured creditors- i am in month 40,and nothing except the lawyer is paid off.i have a few that were claimed as low as $35.She sends them a dollar or so every two or three months lol

[olivies]

It seems convoluted- yet another gaping loop hole congress could fix in Bankruptcy legislation. If there is money available to pay off a secured creditor, why let them stay in the plan and continue to collect interest just because they can when other priority or non-secured creditors have to wait. I believe my IRS and vehicle loan will be paid off within 3 yrs, even though I'm in a 5 yr plan (according to my confirmation, it's marked "within three years" next to those creditors). So it doesn't appear that the debt has to last the length of the plan, and letting the money just pool there only extends the amount of $ they receive. Grrrr....I would just like to see progress made, ya know. This is such a royal PITA (I've even resorted to making my own dishwasher and laundry detergent in an effort to squeeze my pennies until they beg for mercy to be able to make this ridiculously high plan payment), it would be nice to see that it's not all for nothing.