Ch13 plan payments decreased after the initial payment

[BrianBMS]

I filed a CH13 with my attorney (after a discharge from a previous CH7) in order to strip the 2nd mortgage off my primary residence. That part at least is going smoothly. I have 3 rental properties that were all discharged in the CH7 filing but title still remains in my name until the foreclosures start (we're 2 years since last payments). My goal was to cram the mortgages and take on the three rentals again with the much more affordable, positive cash flow mortgage payments until I realized that I was going backwards and decided not to do this. The issue is that I made the first CH13 plan payment which included adequate protection for the creditor for the rental homes. Now that I am letting them go, the payments are much less in the modified plan. I am only on my third payment, my CH13 plan has not been confirmed and no payments to creditors have been made. What happens to the overage amount from the first payment? Does it get carried forward and distributed towards the creditors that are still in the plan? This part perplexes me and my attorney seems fairly sure that it is money lost - but lost to where is my question then.
Thanks for any input...

Brian

[lrprn]

What happens to the overage amount from the first payment? Does it get carried forward and distributed towards the creditors that are still in the plan?

Ask your lawyer to be certain, but in the circumstances you describe (less than a 100% payback plan and you are still in your Ch 13), typically any extra from your first payment will simply be kept by your trustee and eventually go to increase the payback to your creditors that filed claims slightly.

Now if you are in a 100% payback plan, the trustee will still keep the extra money and distribute it to the remaining creditors who filed claims - your plan will just finish a little bit faster.

[BrianBMS]

Thank you so much for the reply to my question. It is very much appreciated.

Actually, all the other creditors are priority and are already getting 100%, the rental properties are the only variable and account for the change in payments. There are no unsecured creditors due to a previous CH7 filing. So, if I understand you correctly, the monies paid earlier in excess of the confirmed monthly amount will be applied at some point. I have a 36 month plan but might finish earlier due to the excess payments if I got this right.