Chapter 13 - After Confirmation - How does Trustee make payments - lump sum or monthl

[Bkq]

1) Chapter 13 plan confirmed - after 12 months.
2) Plan: 60 months
3) Money payed to date on plan: $33,000
4) QUESTION: How does the trustee distribute the money (which the bk judge said will begin next month)??? i.e. Will the trustee make MONTHLY PAYMENTS to the unsecured credtors -- OR -- will he make a LUMP SUM - (based on priority)??? THANKS!

[IamOld]

That's a good question! Mine is the same :-)

So far, the last 3-4 months for my spouse's 13, the Trustee paid the mort arrears and another "secured" arrears exactly as the plan laid out - plan said pay $X/mo and that's what Trustee has been paying.

For taxes though, Trustee's been sending whatever is left after paying mort arrears and the other secured arrears. And thus far that's it.

[HHM]

Once the plan is confirmed, distributions are made monthly.

[Bkq]

once the plan is confirmed, distributions are made monthly.

thanks! One additional question:
1) in our plan - the trustee will be paid $16,500 --- and --- the attorney will be paid $3,500. Will this be taken out immediately

[HHM]

Attorney fee will be paid immediately in a lump sum, I believe the trustee takes his cut each month as he makes distributions.

[tammygirl1]

For our plan, the pot continued to grow until confirmation. Once confirmed, the trusteee applied the whole amount to a priority debt of ours (witch exception to trustee fee). After that, the trustee has sent our car payment in and remaining monthly amount to the same priority debt that will take time to pay down.

[lillymarlene]

I am 11/48 months in, and was confirmed about 6 months after my 341. My attorney is being paid first, and is almost paid. The trustee takes her 10% each time there is a distribution. Then, it looks like a priority debt comes after my lawyer, then the unsecured creditors.