Trustee's Report

[Andyman]

I just got my annual trustee's report about my payments. So far I have made 49 payments. The report shows that my attorney has been paid in full and that my truck has been paid in full to the credit union. It also states that undistributed funds are slightly over $2,000. I have three unsecured creditors (credit cards) that have not been paid anything. With 11 payments left, does the trustee just keep getting my payments and then distribute them to the unsecured creditors? Why wouldn't he just make payments to them?

[LadyInTheRed]

The trustee will make distributions however he sees fit. It sounds like he is holding all cash to distribute at the end. One reason he would do that is that you could have a decrease in income and have to modify the plan. If he distributes to unsecured creditors each month, and you end up with significantly lower payments at the end of plan, he could pay the creditors so much that there isn't enough to pay his fee. He would then have to get money back from the creditors.

There are other things that could happen that would change the amount each creditor is paid. It's easier to make one calculation after you make your last payment instead of having to recalculate later and get money back if something about your plan changes.