I need help on this...Stressed out

[southernmom]

My husband and I filed for a chapter 13 in Sept 2008. Due to some changes in out lives we converted to a Chapter 7. Trustee had over $5000 cash on hand. We were told that we would get that back since trustee stopped paying out in July 2009. Today I look and the trustee has paid all the cash on hand out to creditors that are to be discharged in Chapter 7. Our 341 meeting is set for March 26th. Can the trustee do this or is he in the wrong. I am really stressed over this and need help. We really needed that money to pay for a custody lawyer since we are fighting my ex again.

[forgotten]

I saw a plan from another district and a provision was that upon conversation or dismissal of the case the trustee shall pay out off funds held to creditors. That wording is not in my plan however.

If you plan has been confirmed, unless the trutsee was given an order to not disperse any more funds then my guess is that it is allowed. Your attorney should be able to provide you with a more solid answer as it pertains to your case.

[brokenymom]

if your plan is not confirmed do you get your money back??

[lrprn]

Today I look and the trustee has paid all the cash on hand out to creditors that are to be discharged in Chapter 7. Our 341 meeting is set for March 26th. Can the trustee do this or is he in the wrong.

I don't know who told you that you would get the money you paid into your 13 back, but unfortunately that person was wrong. The trustee will always disperse to your Ch 13 creditors whatever was paid into your plan up until the minute your case was converted.

I'm so sorry that you have to deal with a very difficult situation with your ex along with the stress of your conversion too