Cancelled checks/to principal

[JustMe5316]

I have been checking the National Data Center website on my Chapter 13 case ( I should have about four months left on my case.) Why am I getting a credit on my account saying "CANCELLED CHECKS/TO PRINCIPAL"?

[HHM]

Word of advice, stop checking National Data Center...it has absolutely NOTHING to do with you. That is all behind the scenes claims accounting for the benefit of trustees. There is no information on that website that is helpful to you, and even if you saw something you didn't understand, there is nothing you can do about it.

Don't worry about it and move on with your life. Just make your chapter 13 payment each month, the rest will work itself out on its own.

[justbroke]

I agree with HHM because I checked NDC and it drove me bananas. My first mortgage was being paid and then the Trustee cancelled over $30K in checks one month. Reissued them, and then they all were cancelled again! Finally, about 6 months later, the checks actually cleared.

This is just the Trustee's accounting system and has nothing to do with you "personally". I found that the reason the checks were cancelled was that the bank / creditor, wasn't accepting the "less than full" payments!

[irish7207]

Thanks you guys!!! I wish I had found this site sooner. I have been paying about fifty dollars extra a month thinking I could pay my bankruptcy off sooner.... but after reading all the information from this site... Im pretty much screwing myself.

[HHM]

Sorry to say, but yes

Paying more is a mistake. (unless you are already in a 100% pay off plan, which means paying back 100% of all filed claims). If you are in a LESS THAN 100% plan, paying more simply increases the amount paid to the creditors, it doesn't reduce the time you spend in the plan.

That was one of the BIG changes in the 2005 law. It used to be that once you established the plan amount, that became the pay off. Now, you cannot pay off early.

[justbroke]

Don't fret too much over paying "extra" in a less than 100% plan. I have read about attorneys that made mistakes and advised the debtor to pay off the "plan base" only to have the Trustee say "thanks and we'll be expecting your monthly payment on the 1st".

Just stop doing it, pay on time, keep on plan... and put that $50 into your OWN savings!