When I initially filed Ch. 13 in Nov of 2008 it was in an effort to keep my home. Quickly after we filed we realized we are better off letting the bank have the house and just start over. The court lifted the stay and allowed the mortgage company to take the house back over a year ago but still hasn't happened yet. Since the stay was lifted the court has not applied any of my payments to the secured creditors which included my Mortgage and back property taxes. My payments to the trustee are strictly paying unsecured creditors. I am paying those back at 100%. My question is at the rate I am going I will be done paying 100% of my unsecured creditors 11 months earlier than the 5 year plan ends. Will the court discharge early or will they make me pay toward the secured creditors that was in the plan initally?
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Famgalle,
It appears that you did not modify the Plan to show the surrender of the property and thus remove the funding that was earmarked for the mortgage company and the County Treasurer. While doing so would have been the proper course of action, if your home sits on no more than 2.5 acres, the lender that forecloses will not have a deficiency claim hence one of the reasons payments have not been sent by the Trustee. The property taxes run with the land and, again, since the stay has been lifted, those should not be paid either.
In theory, since the Trustee will not make payments once the stay has been lifted, you case should end early. But, the only way to be sure is to modify the Plan, surrender the property, remove the funding associated with the property and fund whatever remains. The Trustee is bound by the current Order Confirming the Plan. He may have a problem “closing” the case until the appropriate changes are made. If you have an attorney, call him/her. If you don’t call the Trustee’s office. That office cannot give you legal advice but it may be able to point you in the right direction.
Des.
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