What happens to my payments if I'm not confirmed?

[jtallerie]

I turned in the last of my paperwork today, to file my chapter 13 next week.

What happens if I make the payments and then I am not confirmed?

What happens to the money that I paid into the plan if I am forced to convert to a chapter 7 if not confirmed. Does the Trustee just keep the money?

[espo1357]

I turned in the last of my paperwork today, to file my chapter 13 next week.

What happens if I make the payments and then I am not confirmed?

What happens to the money that I paid into the plan if I am forced to convert to a chapter 7 if not confirmed. Does the Trustee just keep the money?

Not sure, but if you are in a 13 and don't finish, the money goes for nothing and you have to start over.

Do you even qualify for a 7? The only purpose of a 13, when you don't qualify for a 7, is to strip liens and keep your assets (I think) like your home.

I am expecting confirmation soon, and I have made several payments into my 13 already.

Anyway, sorry I don't really have the answer you are looking for. but, I would just make sure you have all the information on the table and you should be fine for confirmation. Be patient on that. At the same time, you need to know if you even qualify for a 7, especially if you don't want to keep your home or other assets (I think a car with a car loan would also fall into that category).

Good luck.

[jtallerie]

I qualify for chapter 7 I just want to try to keep my house

[lrprn]

Whatever you pay into the Ch 13 between filing and a failed confirmation is kept by your trustee and applied to pay your lawyer's fee, trustee's admin fee, and then the rest goes toward any priority debts you filed with.

If your Ch 13 ends up dismissed because it can't be confirmed, will you get any of your payments back? It depends on your personal financial situation, but in 99% of cases like this, the filer gets nothing back.

Think long and hard about whether it will be worth keeping your home if you really can't support a Ch 13 plan that meets the minimum requirements over three years. A house is just a thing, and things can be replaced. If you give up the house and file Ch 7, you can be back in the housing market with a reasonable interest rate within 2-3 years. Just something to think about.....

[walkthaplank]

In my case, we filed the case, submitted our first payment and the case was dismissed. We received that payment back less a $100 trustee fee. Your experience may vary.

[jtallerie]

Walkthaplank, why was the case dismissed? The trustee did not let you rework your plan?

[walkthaplank]

Walkthaplank, why was the case dismissed? The trustee did not let you rework your plan?

The case was dismissed because part of my filing included a lien strip. Because the lien strip motion was denied* the plan could not be confirmed, in our court if the case isn't confirmed it is dismissed.

*My lien strip motion was denied because there wasn't a notarized declaration from the appraiser stating that he was a licensed appraiser and had appraised the house, even though in the appraisal it included the fact that he was a licensed real estate appraiser (copy of license included) and that he had been called to the house by me to appraise the home. No, I'm not kidding

In the second filing, the only difference was a half page declaration stating:

I Joe Blow declare as follows:

1. I have personal knowledge of the facts in this case, and if called upon to testify in this action, I could and would testify competently thereto

2. I am a State Certified Appraiser (No. ab12345).
3. In April 01, 2009, I was contacted by Walktheplank and his Lovely wife to conduct an appraisal of their home located at 123 deadbeat st, Suckertown, CA.
4. I prepared the Residential Appraisal Report dated April 01, 2009, that is attached to the debtor's motion as Exibit B. This appraisal is a true and correct copy of the one provided to their attorney, Wilfred B. Scheister.

I declare under penalty of perjury under the laws of the United States that the foregoing is true and correct to the best of my knowledge.

Executed this day.....

[jtallerie]

Walkthaplank, Wow! I did not know they were that tough. How long did it take you to refile? Did you have to wait months to refile? I'm assuming that your automatic stay was lifted when your case was dismissed.

Did all your creditors come after you? Did your lawyer make you pay extra to refile?

[walkthaplank]

Walkthaplank, Wow! I did not know they were that tough. How long did it take you to refile? Did you have to wait months to refile? I'm assuming that your automatic stay was lifted when your case was dismissed.

Did all your creditors come after you? Did your lawyer make you pay extra to refile?

He had it refiled within a month, not enough time for the sharks to smell the blood. The lawyer didn't charge for the refiling, it was his error. Of course I didn't find out it was dismissed until I got the ruling in the mail stating that it was dismissed. I called the lawyer in a panic and he told me that he knew and it would be resolved very quickly. It was apparently the first time that they had this happen. In the past they continued the case until the motion could be refiled. He was out money, so I don't doubt what he says, but still it would have been nice for me to have found out from HIM about the dismissal and his plan to refile...

[HHM]

If the chapter 13 is not confirmed and subsequently dismissed (note, if a plan is not confirmed, it gets dismissed), the debtor should get a refund of amounts paid into the plan minus a trustee fee. The amount of the trustee fee will vary by district.

Without a confirmed plan, the trustee cannot pay any claims.

[jtallerie]

HHM, thanks for the info. That seems to make sense. You are right, he would not be able to pay anyone.