Trustee Holding our last 3 payments not paying them out were done thous

[Ron55]

Our trustee has the last three payments on our chapter 13 we are done now finished but he is just sitting on the money not making the final payouts with it. This is going on for three weeks now. We need that paid out so this can go on and get done so we get our discharge.
Has anyone else had this problem with the trustee holding the funds a long time and not paying them out?

thanks
Ron and Kathy

[despritfreya]

Your Trustee disburses funds at the end of the month. If you paid it 3 weeks ago you missed the December distribution. It may go out around January 28th. Once it does, the Trustee cannot file his Notice of Completed Case until the all of the checks he has issued are cashed and he does his final accounting.

Des.

[Ron55]

My trustee does not pay the end of the month only, I have had pay outs on the 7th 11th, 14th and 17 and 29th so no only end of month with him that is why I wonder why he is hanging on these last three.

[despritfreya]

My trustee does not pay the end of the month only, I have had pay outs on the 7th 11th, 14th and 17 and 29th. . .

So, instead of guessing, why don't you call his office and ask? If you have the e mail for the Trustee, you can try that. I do not know which one you have but they both work on weekends so maybe you will get a response.

Des.

[Ron55]

HI Im in Arizona and have Russell Brown, are you familiar with him at all? I know nothing about him in all honesty

[despritfreya]

Below is a disbursement schedule for one creditor in one particular case. As you can see the last disbursement was at the end of December, 2010. The next one will be around January 28th. Hopefully your funds will go out at that time.


12/28/2010 $1,464.41 $238.14 $1,702.55
11/29/2010 $1,932.87 $254.25 $2,187.12
10/28/2010 $1,333.30 $265.36 $1,598.66
9/29/2010 $852.54 $272.46 $1,125.00
8/30/2010 $845.49 $279.51 $1,125.00
7/28/2010 $279.48 $845.52 $1,125.00
4/29/2010 $1,658.68 $591.32 $2,250.00
2/24/2010 $3,818.16 $10,806.84 $14,625.00
1/14/2009 $302.40 $0.00 $302.40
12/17/2008 $600.00 $0.00 $600.00
11/19/2008 $3,620.92 $0.00 $3,620.92
10/22/2008 $2,262.50 $0.00 $2,262.50
9/24/2008 $2,262.50 $0.00 $2,262.50
7/30/2008 $769.25 $0.00 $769.25
5/29/2008 $769.25 $0.00 $769.25
4/29/2008 $769.25 $0.00 $769.25
3/26/2008 $2,746.33 $0.00 $2,746.33

Des.

[Ron55]

I am hoping so in order for us to get this discharge on the road. I am so tired of being tied up in the bankruptcy for years that once the discharge is here we will never do anything to make this happen again.

[justbroke]

How the Trustee performs "final" accounting shouldn't be your issue. The Trustee has to make sure they they have paid the secured creditors, priority creditors, themselves and your attorney before paying any unsecured percentages. Please be fully aware that the final account and report usually takes months (3 or more) to do those things that Des writes about (issue checks, wait for returned checks, final accounting). This is to insure that the discharge is proper.

If you are no longer actually making payments, then you should be well aware that all payments to Secured creditors are now your responsibility... even those the case isn't discharged/closed!

[lrprn]

Please call your lawyer. He/she can find out for you when the approximate discharge date for your Ch 13 is likely to be. In some states it's as little as 4 weeks and in other states it can be many months. Getting a push from your lawyer can often speed up an overwhelmed trustee (as most Ch 13 trustees are these days). Good luck!

[Ron55]

My attorey told me it is 3 months minimum for the discharge and there is no speeding it up that is a direct quote from my attorney and they said they have no way to make the trustee do anything faster.

[despritfreya]

If you are no longer actually making payments, then you should be well aware that all payments to Secured creditors are now your responsibility... even those the case isn't discharged/closed!

JB,

Just FYI, in AZ the only secured creditor that would be remaining at this time would be a mortgage if Ron55 has a home that he is keeping. All secured personal property was paid through the Plan. Any lien releases will be issued between 30 and 60 days post discharge.

Des.

[justbroke]

Thanks Des, you're right on that. All other secured debt should have been satisfied through the Plan. The only thing that traditionally lingers is mortgage payments.

[Ron55]

Hi we have no mortgage in our chapter 13, only a car and the auto finance said they wont release a title to it till after the discharge is issued. What we are wanting to do is get an fha loan we are approved already if we have trustee permission or if we wait till after the discharge is issued. And we have no other payments to make of any kind as all our debt was in our chapter 13 paid. No secured debt payments left to pay on and only waiting to get the auto title and the discharge. The attorney said usually 90 days after final payments are dispursed and auto finance wont release title till the discharge is issued. We dont want to really ask trustee for permission for a mortgage even thou we paid all payments on our plan in full since we dont know how he is or what he may say or do.

[despritfreya]

We dont want to really ask trustee for permission for a mortgage even thou we paid all payments on our plan in full since we dont know how he is or what he may say or do.

Your Trustee is not going to say "no" and it might be quicker to get a letter from him than to wait for the entry of the Discharge. Call Vangie or Cheryl and explain why you need the letter. Hopefully one of them can get the Trustee to issue something other than the standard letter (which does not apply). You want the letter to state that you "have completed your payments and the process of the entry of the Discharge is in the works. . . As a result, the Trustee does not oppose the financing for the purchase of the home". Or something along those lines.

Des.

[Ron55]

Call Vangie or Cheryl ? do they work for the trustee Russell Brown in Phoenix? As I said I have never contacted them at all for anything so do not know who works for them at all.
thanks
Ron and Kathy