Final audit

[cobbrudy]

We will be done paying our Chapter 13 in 3 months. The trustees office told me that any over payment we have made will be refunded to us after a final audit is completed. So instead of making a final payment in the normal monthly amount why can't my final payment be exactly what is due? Also, what is a final audit, what is involved, and how long does it take??

Thanks!
Jen

[13inOR]

Jen, we are waiting on the same thing right now. We did an early payoff of our 100% plan on February 28, and they are still sitting on over 12,000 that they haven't even disbursed yet.
I think the reason you need to keep paying the same amount is that is what the judge ordered for the life of the plan. Neither you or the trustee have the right to adjust the payments without the courts permission.
They will refund any overpayments after the audit.
They will owe me about $2000 when all is said and done.
Our attorney said the final audit takes "a couple of months" and as I understand it, its basically just going over the accounts and insuring everything was paid correctly.
It is also at this time that they make sure preferential payments weren't made--for example if you were only paying one creditor and not the others they could make that creditor pay back the money to the others. Thats just an example.
I know its frustrating to wait, But hopefully your trustee will move along quickly, because I do think it varies from trustee to trustee and from case to case.
And congratulations by the way on nearing completion of your plan---that is really an accomplishment!!

[Jman30]

13inOR, since you are going through this currently, I have a question. I heard it takes a couple of months for the Trustee to stop getting payment (mine are paid through a wage garnishment and I guess it takes a couple of months for the Trustee to send the letter to my employer telling them to stop the garnishment).

Currently, my mortgage is in the Chapter 13, but once I am done, I will have to pay it every month, as usual. So what happens if I have to pay my mortgage on Jan 1st, 2007 but they are still taking that amount and sending it to the Trustee?

[13inOR]

I can't give you an exact answer because in our case, our mortgage payment was paid directly by us. I can see why you are concerned though, you don't want to be hung out to dry while the trustee drags his heels.

Would your attorney have any suggestions? Sorry I couldnt be more helpful. : (

[Jman30]

13inOR,

Yeah, the last thing I need after I complete my Chapter 13 is to fall behind on my mortgage that first month!

I think I may be able to petition the Court to stop the wage garnishment a few months before the end of my Chapter 13. That way, it may end on time.

[Pumpkin729]

early payoff

Ok let me see if I'm getting this correctly. Let's say that you have a 5 year plan and you want to pay it off early at the 3 year mark, but you're not paying 100% back to the unsecured creditors...I have my lawyer submit pappers for a early pay off amount.....let's say the payoff is 13,000 and I sent payment in for 13,000...I still have to continue making my regular payments until I receive my discharge papers in the mail??? If so do I get back that money sent in after paying the 13,000 or is it that they get to keep it because my plan wasn't paid back at 100%?