Just looked at 13datacenter and it shows a disbursement to our auto finance company. We've yet to be confirmed. Is this common? Will call atty tomorrow, but was wondering if anyone had any insight.
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Disbursement to auto finance company pre-confirmation
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Sometimes trustees do make payments to secured creditors before confirmation - ours did (it took us 15 months to be confirmed - trustee objections took that long to resolve).
In our local court, our trustee had to get permission from the court to disburse payments to our auto lenders before we were confirmed. Do you know if this is required in your local court?
When you call your lawyer tomorrow, let us know what he/she tells you. However, keep in mind that in the long run, these trustee payments before confirmation really don't matter to you. You just need to keep making your Ch 13 payments on time without fail until you are confirmed.I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.
06/01/06 - Filed Ch 13
06/28/06 - 341 Meeting
07/18/06 - Confirmation Hearing - not confirmed, 3 objections
10/05/06 - Hearing to resolve 2 trustee objections
01/24/07 - Judge dismisses mortgage company objection
09/27/07 - Confirmed at last!
06/10/11 - Trustee confirms all payments made
08/10/11 - DISCHARGED !
10/02/11 - CASE CLOSED
Countdown: 60 months paid, 0 months to go
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Originally posted by lrprn View PostSometimes trustees do make payments to secured creditors before confirmation - ours did (it took us 15 months to be confirmed - trustee objections took that long to resolve).
In our local court, our trustee had to get permission from the court to disburse payments to our auto lenders before we were confirmed. Do you know if this is required in your local court?
When you call your lawyer tomorrow, let us know what he/she tells you. However, keep in mind that in the long run, these trustee payments before confirmation really don't matter to you. You just need to keep making your Ch 13 payments on time without fail until you are confirmed.
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Your secured lender is getting, what are called, "adequate protection payments". This protects the lender from the anticipated depreciation in the value of its collateral during the confirmation process and until the "normal" payment from the Trustee begins. While the amount may vary from State to State, it should be about 1% of the value of the vehicle since vehicles typically depreciate 12% on an annual basis.
Des.
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Originally posted by despritfreya View PostAs I said, the amount paid for adequate protection will vary from jurisdiction to jurisdiction. The amount paid equates to $223.25 per month for the 4 post petition months. So. . . what is the vehicle worth (not what is owed) and, what was your normal monthly vehicle payment?
Des.
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