Conversion to Ch7, getting plan payments back?

[AZNoName]

My conversion to non-consumer Ch7 happened yesterday. I see that Pacer shows my atty filed the amendments and such, but I recall someone here on the forum mentioned a special filing to get the payments back from the Ch13 trustee. Any idea what that is called? Whatever it is, I don't think my atty filed it since it doesn't show on Pacer.

I've paid 3K into the plan, and my plan was not confirmed. Nothing was distributed to creditors. That 3K includes some payments on secured debts (car payments). I also am an asset case, and will try to purchase back some non-exempt assets if the trustee allows. Could that be why my Atty didn't file the request to get the 3K back from the trustee?

Should I just let it go? What happens? Will the Ch13 trustee keep the money?

[Mayo]

They could keep the money for your Attorney fees and Trustee Fees. If you would have stayed in your plan for a longer period you would have seen they get their money before any of the creditors see any of the money.

[despritfreya]

Since your Plan was not confirmed the funds you paid will be returned to you minus any Trustee's fees, fees owed to your attny if your Plan included such and any adequate protection payments that may have been made on the vehicle. It should take 60 to 90 days for the funds to be returned. Simplest way to verify what will be returned and when is to call your Trustee and ask.

Des.

[AZNoName]

I got the notice they're mailing out a refund on my payment plan (minus any fees and such) on 3/27/12. My 341 meeting is April 5th. Do I need to be current on my car payments in time for the 341 meeting if I intend on keeping the car? If so, I will need to catch up on payments before I get the refund...

[justbroke]

I got the notice they're mailing out a refund on my payment plan (minus any fees and such) on 3/27/12. My 341 meeting is April 5th. Do I need to be current on my car payments in time for the 341 meeting if I intend on keeping the car? If so, I will need to catch up on payments before I get the refund...

I received the Order Converting Case and it contained a $6,000 amount for the Trustee to refund directly to me. However, it took 3 months to get it AND my payroll deductions were still occurring. By the time I got it all back, $13,000 was sent back to me. I filed a Motion to Compel Turnover just for giggles (right after I had filed the Notice of Conversion). I withdrew that motion once I figured out what was going on with the money.

As for being current, just work with your current automobile lender. You may need to reaffirm the loan since you are behind. You may want to look at REDEEMING that car! If you have had it for only 3 years, then you probably are underwater on the car anyhow. You'd need to get a Redemption Loan or find funding to pay for it. I did this for one car and I saved at least $9,000 off the balance (by redeeming it)!

[AZNoName]

JB, what was your threshold for pursuing a redemption? I could definitely see it at 9K, but I may only be around 1-2K underwater. Redemption loans have a high interest rate, right? by the time I go through a redemption loan and refi 6 months later, I'm not sure it would be worth it?

[justbroke]

JB, what was your threshold for pursuing a redemption? I could definitely see it at 9K, but I may only be around 1-2K underwater. Redemption loans have a high interest rate, right? by the time I go through a redemption loan and refi 6 months later, I'm not sure it would be worth it?

Yes, you have to do all the math and see if it is worth it! I refinanced my redemption loan after about 6 months. It was 1000% worth it for my case. As such, the reason to redeem while being only $1-2K underwater, really will depend on the value of the vehicle! My vehicle was a $44K SUV that had $19K left on it at conversion; I redeemed for $9K. It was a no-brainer for me. (The lender complained at first, but after I sent a letter to them explaining the caselaw in my District, they quickly allowed the redemption and offered a LOWER amount than I had on my Motion.)

[AZNoName]

So you owed 19K at conversion? what was it worth?

I owe about 20K on my car. It probably blue books for 18-19K I imagine...

[justbroke]

So you owed 19K at conversion? what was it worth?

I owed $19K at conversion. I had "valued" the claim in my Chapter 13 under the 910-Vehicle rules. So the unsecured amount was tacked back on. It was worth $9-12K depending on whether it was retail or trade-in.

I owe about 20K on my car. It probably blue books for 18-19K I imagine...

It may not be worth your effort to redeem it. If you have a GOOD interest rate, I'd stay with the current lender anyhow.