Disbursement to auto finance company pre-confirmation

[kakdbass]

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.

[lrprn]

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.

[kakdbass]

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.

It's only been four months since we filed, our confirmation hearing has been postponed several times. I didn't find anything on pacer that shows permission from the court for disbursements and have no idea idea what is/isn't required. I have no intentions of not making timely payments..

[despritfreya]

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.

[kakdbass]

Well, we owe about $7600 and the disbursement was $893. Filed our case in June. Hopefully,our atty can explain, but I'm not holding my breath.

[despritfreya]

As 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.

[kakdbass]

As 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.

The vehicle is worth about 4k and the original payment was 366/month.

[despritfreya]

The vehicle is worth about 4k and the original payment was 366/month.

Then I don't see the relation between anything and the adequate protection amount. Will be curious to hear what you find out.

Des.

[kakdbass]

Left a voicemail and sent an email this a.m. no reply as of yet. We fell victim to an atty that promised us the world and now it's like he's fallen off the face of the earth.