Question about Trustee disbursements

[lolly78]

Hi Folks, glad to see the site back up and running!!!!

I know I shouldn't concern myself with how the trustee pays out funds but I can't help it! It took over six months for my plan to get confirmed so now after eight months there is over $10k paid into the plan.

They finally made the first disbursement today, and rather then paying off all administrative, priority and secured claims (there was more then enough to do so), they have paid the attorney and a few hundred dollars to four unsecured creditors.

Why would any unsecured claim get paid before the IRS? It just doesn't make since to me and I'm thinking about calling them about it.

[justbroke]

No one understands why the Trustee pays this person versus that person. Sheesh, my Trustee held $33K in payments to my mortgage company for several months! Ouch! It is not your concern, but they may be actually waiting for a claim to be filed by the IRS.

(For what it's worth, the IRS is an unsecured creditor. They just have "priority" treatment. I would not worry about this unless the IRS never filed a claim and the Trustee is waiting to see just what s/he should be paying the IRS. The IRS claim will have both a "priority" and a "general" unsecured amount.)

[tigergem]

I have learned that if I have a question about something that looks "off" on the trustee's website, they are generally appreciative if I call them to inquire about it. Historically speaking, it has turned out that they have actually made an error and appreciated me bringing it to their attention so they could correct their database. This may or may not be true in your case, but has proven to be true in mine.

[HHM]

First, has the IRS filed a proof of claim?

Also, secured claims don't necessarily get paid first anyway, they get paid over time usually.

But, as for order, yes, your attorney gets paid first, ALWAYS (unless there are child support arrears being paid).

My purely speculative guess is that the IRS may not have filed its POC...but who knows.

[lolly78]

Thanks everyone! Yes the IRS filed their claim and they are listed on the trustees site with all my other creditors.

[tammygirl1]

Our child support and car payments are being payed before our lawyer and IRS. I would have thought IRS would get before car payment but who know why/how they decide.

[catleg]

It may be that they are trying to force the secured lenders to take a lower interest rate, that's all I can think of.