Status of Ch 13 payments when case is dismissed?

[greatfuldebt]

When we initially submitted a 13 plan in Georgia in November 2009. The proposed monthly payments of $1200.00 were made for five months. In other words, I paid in $ 6,000.00 to the trustee's office. On 4/15/2010, the case was dismissed for various reasons.

Today, I received a check for $1,500.00 from the trustee. Does the $4,500 seem reasonable for trustee and lawyer fees? Per my lawyer, I did not owe any money to the law firm, but it is possible the trustee could award some legal fees for their efforts (two meetings).


Please share any thoughts or experiences.

Thanks in advance for the feedback!

[HHM]

Was the plan "confirmed"?

[greatfuldebt]

No, the plan was never confirmed. We had initial 341 meeting, which had "proposed" the $1200 monthly payment. We were attempting to resolve the objections raised by the trustee during the five months. We were unable to get plan confirmed.

All payments were made timely to trustee.

[justbroke]

If the plan payment included payments to "secured" creditors, those creditors are paid before confirmation. Unsecured creditors are usually not paid until the case is confirmed. The $4,500 may have been used to pay your secured creditors over that 4 months. The additional money may have been for unsecured creditors.

I can't tell without the details of your plan. Be glad that you received a refund.

[greatfuldebt]

Secured debt was being paid outside of plan. I will contact trustee and request an accounting of the account. Being I faxed tax returns FOUR times, and they misplaced three payments, I'm hoping this just another mistake.

[sheilaE]

Greatfuldebt, I don't have an answer, but I have a question....what happens when it's dismissed? Do you go back to receiving collection phones calls? Also, do you go back to having to make the cc payments?
Sorry for the questions. We've retained our atty and will file this summer. I'm trying to understand how all this works.

[HHM]

Greatfuldebt, I don't have an answer, but I have a question....what happens when it's dismissed? Do you go back to receiving collection phones calls? Also, do you go back to having to make the cc payments?
Sorry for the questions. We've retained our atty and will file this summer. I'm trying to understand how all this works.

Although off topic...the answer is yes.

When a chapter 13 is dismissed, you go back to square one. Collection calls start. Also, since you haven't been making payments, you will be in default so it will be difficult to simply reinstate payments. Also, once the case is dismissed, the creditors can go back to the date the case was filed and add back all interest, late fees, etc (note, interest stops accruing while a chapter 13 is pending).

[sheilaE]

Oh my...thanks for the answer. I have more questions-and will start a new thread

[greatfuldebt]

JustBroke,

I'm glad to get a refund, it's just for much less then expected. Is the trustee obligated to provide an accounting of all monies submitted and paid?

If creditors were paid, I need to confirm amounts were posted against my outstanding balances with each creditor.

[justbroke]

I'm glad to get a refund, it's just for much less then expected. Is the trustee obligated to provide an accounting of all monies submitted and paid?

Yes. on your Dismissal order, it should give a time period for the Trustee to provide a final accounting to the court. It is usually 30-60 days after the order dismissing the case. They wait this long to make sure all checks clear.

Check PACER for the final accounting. It may not be available yet.