Trustee payments curiousity

[catleg]

In my wife's ch13, there is just some priority tax debt, which has already been paid, cars and mortgage outside the plan, and unsecured creditors.

I was quite surprised to check the 13datacenter site and see that the trustee has begun making payments to unsecureds, yet, is being selective, only paying claims where the balance is over $10k. So the payments are around $20-30 each to about 10 creditors.

I guess I can understand that they need to pay out money to claim their commission, but I thought the unsecureds would have to wait a while longer, and need to be treated equally.

Very strange, to me anyway.

[andy158]

Since we filed nearly a year ago, the trustee has only made payments to the lawyer and a car included in our case. Whe have over $10k on hand according 13datacenter and no payments have been made to any unsecureds yet. Every district is different.

[WhattaMess]

My trustee made an initial small payment to all creditors, even unsecured. I do not know why. After that, he just payed secured until they were all payed off, and is now paying on unsecured.

[Carter]

My trustee began paying IRS priority first then began paying my car loan. Now the car loan is only owed $520 and will be paid in full only they stopped 6 mos. ago paying on the car and are now paying my other unsecured debt. The car is on its last leg and I was really hoping that they would hurry up and pay off the $520 owed on the car so I could get the title. Don't know why they decided to pay other unsecured debt.

[mrskal]

I have a friend with a similar situation Carter. She said her car is just about paid in her 13 and was wondering if she will be able to get the title, so she can trade in for something else. Do they do that before you are done with your plan?

[JSFleischman]

She should, but the likelihood is that the lender won't release it until the case is completed. Most lenders keep your entire loan in suspense until discharge is issued, so that's why. If the note is PIF, have the debtor call the lender and scream bloody murder.