So close, I can TASTE it

[Kuya]

So, I filed for BK in 2006. It was a 60 month plan, paying $480 a month. Technically, 60 months will be in the spring of 2011.

However, even though my court plan was based on monthly payments, they took biweekly payments right out of my check for $240 each. Therefore, over the last 5 years, there were a number of months I paid $720 a month instead of $480.

That being said, I noticed that, about a month ago, I had paid into my plan the full base plan amount. Obviously early. Now, a month later, they are still taking the $240 out of my checks, but not paying out to any creditors. Currently they have $740, which basically means they were done 6 weeks ago.

Next week, I assume my paycheck will still show a deduction/garnish of $240, and bring the overpay amount to $960.00

The real question:

How long does this go on for? Where they keep garnishing my check, even though I have paid the plan off. I check every day and my status keeps saying "active"

I wait and wait for the day it says "audit review" or "pending closing" . . something. anything . . . It will be such a relief to have the garnish stop . .

Any ideas of how long this goes on for? Weeks? Months? I am pretty sure that they will simply refund to me, any overpaid amounts . but gosh already lol.

Would of been nice, if the garnishments had stopped before Christmas . . but I guess that was wishing for too much.

At least, it seems as if I am in the final stages . . .

[jcj112562]

I would contact your lawyer, and have them contact the trustee. I filed Ch13 pro se, and kept a very close eye on the trustee balance, and balance of allowed claims. I wrote to the trustee's attorney that handled my case, and as soon as they were in possession of all required funds, she wrote a letter to my employer to get the wage witholding to cease. Easy peasy, and they only got one check after the paid in full mark was reached.

John

[Kuya]

I would contact your lawyer, and have them contact the trustee. I filed Ch13 pro se, and kept a very close eye on the trustee balance, and balance of allowed claims. I wrote to the trustee's attorney that handled my case, and as soon as they were in possession of all required funds, she wrote a letter to my employer to get the wage witholding to cease. Easy peasy, and they only got one check after the paid in full mark was reached.

John

Thanks John

I had contacted my attorney as soon as we reached that "magic number" . . . I will contact my attorney.

It appears there are some advantages of pro se

[lrprn]

I hate to be the person to bring this up, but are you in a plan that's going to pay your unsecured creditors who filed claims back at 100%?

If you are in a plan that will pay back less than 100% (and that's most plans), then it's possible your plan will continue on until all confirmed payments have been made. Typically when plan payments are set to pull from each paycheck like yours are, the payments accommodate the 'every other week' paycheck and the extra payment that's made twice a year. In other words, when the dust settles, you will likely end up paying the full 60 months at the confirmed payment amount every two weeks.

You do need to check with your lawyer to find out what's going on with the finances of your case. Just don't be surprised if you find out that although you think you've calculated things correctly, your payments may require the extra payments twice a year to match up with your Means Test and Schedules disposable income levels back in 2006.

I hope I'm off-base here. Please keep us posted about what you find out, and it's so great you are so close to finishing your plan! Woohoo!

[Kuya]

I hate to be the person to bring this up, but are you in a plan that's going to pay your unsecured creditors who filed claims back at 100%?

If you are in a plan that will pay back less than 100% (and that's most plans), then it's possible your plan will continue on until all confirmed payments have been made. Typically when plan payments are set to pull from each paycheck like yours are, the payments accommodate the 'every other week' paycheck and the extra payment that's made twice a year. In other words, when the dust settles, you will likely end up paying the full 60 months at the confirmed payment amount every two weeks.

You do need to check with your lawyer to find out what's going on with the finances of your case. Just don't be surprised if you find out that although you think you've calculated things correctly, your payments may require the extra payments twice a year to match up with your Means Test and Schedules disposable income levels back in 2006.

I hope I'm off-base here. Please keep us posted about what you find out, and it's so great you are so close to finishing your plan! Woohoo!

Irpn,

Thanks for your input. You may be right, although I am still hoping your wrong, no offense

Anyway, my base plan is $28,800.
Last month, I had paid into the plan $28,000 - but continue to pay into it.
They also stopped paying out to creditors. Typically my Trustee makes payments to creditors at the beginning of each month. This month, no payments were made, even though there is an additional $740 - which makes me think my plan IS fully paid.
Also, ALL creditors have received EXACTLY 10 % (secured received 100%). Which also seems funny that all of them have been paid exactly 10%.

My attorney said it was pretty much done, and to give it a month or two for them to close it out . . HOWEVER, he was just talking to me over the phone and did not have my actual case up to verify this.

My court papers signed by the judge specifically state $480 per month for 60 months. So this would also make sense that they did not account for the Trustee taking biweekly payments . . and paying out slightly faster .

HOWEVER I do trust your experience, and you are probably right. I am just hoping and wishing .

Either way it wont be too long. I will post back whenever I have more info.

[Kuya]

Turns out, my BK 13 closed early!! YIPEEEEE

I was right in assuming that once my base amount was paid into the plan, it would be done. My case is now listed as complete as of 1/6/2011. 5 months earlier than the 60 month bk13 - due to my plan being based on monthly payments and the Trustee taking bi-weekly payments . . thus making overpayments on many months during the 5 years and finishing early.

YEAHHHHH!!!!