Trustee hasn't paid anything in 6 months

[angel2002]

I have a quick question. I've been monitoring 13datacenter for the entire length of our plan.

We are technically 3 payments away from meeting our plan base. Looking over the account ledger tab on 13 data center it shows that the trustee has made no payments to any creditor since March. As of April 1st the only transactions have been our weekly payments that are drafted from hubby's check.

All the secured creditors have been paid in full which include mortgage arrears, HOA dues etc. I show a small balance for a priority tax debt but other than that no other creditor has been paid. Right now the balance on hand is $2676.31 with only $1700 left to pay into the plan to meet the base.

Is this normal? Is the trustee just going to start rapidly sending out checks right at the end of the plan? The plan document shows that $1452 is scheduled to be paid out to unsecured creditors and of course the 10% cut the trustee gets from our plan.

If I subtract what's owed still to the trustee, the amount to the unsecured creditors and the small balance on a priority tax debt from what the trustee should have on hand at the end of the plan there should be a $1965 surplus. Does the trustee divide that surplus amongst the unsecured creditors or do we get that back?

I doubt we would get a refund but one can dream right?

[Pandora]

Seems odd for a trustee not to pay anything towards any creditor monthly. You should be able to call their office and pose the question; perhaps the 13datacenter just isnt up to date? I'd call just to ease my own mind.

[angel2002]

That's what I was thinking for the first 3 months but now that it has been 6 I'm starting to wonder if they've forgotten about us. We received the trustees notice of intent to pay claims about a month ago. I figured checks were going to start getting cut but so far nothing.

I'll give it a few more weeks and then call them. In the back of my mind I'm still hoping for a big refund but it probably doesn't work like that.

[LadyInTheRed]

My guess is that this paticualar trustee prefers to pay unsecured creditors all at once, after the debtor makes the final payment.

I wouldn't worry about it. The trustee will send the checks out based on his/her own procedures. You are in a 100% plan, right? All of your creditors will get paid 100% of their claims and the trustee will get his/her fee. You will get what is left.

[angel2002]

Thanks LIR. Yes we are in a 100% plan. Which I still don't quite understand that. Meaning everything shows we are in a 100% plan but when I look at the plan documents it shows that only $1452 is to be paid out to all unsecured creditors.

However, the total amount owed to unsecured creditors totals more than that. Our plan document outlined 2 secured creditors that would be paid. One for the arrears on my car and the other for past due property taxes. Oddly the lender for my car filed a proof of claim for $0 owed to arrears so the trustee paid nothing to them. Then there was a property tax claim for nearly $1000 but the trustee only paid $288 of that.

When we received the Trustees Notice of Intent to Pay Claims last month I noticed that the property tax claim was no where to be found so perhaps our mortgage lender paid the remaining balance out of escrow?

I'm wondering what will happen to those orphaned funds from our plan base if they won't be paid out. Because it sure seems like at this moment there is enough of a balance on hand to take care of what was to be paid out.

I'm a little scared to call the trustee and put ourselves in the cross hairs if it's nothing to worry about. I'm paranoid I guess.

[AngelinaCat]

Hi Angel2002. I have broken your long posts into paragraphs to make them easier to read. LITR must have better eyes than I do. Please help everyone out by using paragraphs where appropriate.

Thanks!

[angel2002]

I apologize AngelinaCat. I didn't realize I was structuring my posts that way. I guess everything was flowing as a singular thought. I'll keep future posts in check.

[WhattaMess]

My trustee has paid the creditors every month of my 60 month plan except for the last three. I noticed three months ago that he did not make the payments on the first of the month as usual. The next two months were the same. I checked ndc.org this morning and saw that all of the accumulated money was disbursed yesterday, including a refund to me for overpayment (yay). So if your trustee is like mine he may be just waiting until the last payment to do one large final disbursement.

By the way, my plan was 60 months with a payment of 1600.00 paying approximately 60% to unsecured. I give alot of credit to my attorney in making this a very workable plan for us. The 60 months have gone by very quickly.

[AngelinaCatHub]

It is possible, and I am not saying it is happening, but your IOTA (Trust account) draws interest. If all monies are held in the IOTA it could be a sizable amount. Who gets that interest? Many lawyers do this and I was told the state bar association rakes off interest from some of these Trusts. I will check further into this. 'Hub

[LadyInTheRed]

Thanks LIR. Yes we are in a 100% plan. Which I still don't quite understand that. Meaning everything shows we are in a 100% plan but when I look at the plan documents it shows that only $1452 is to be paid out to all unsecured creditors.

Are you saying you are in a 100% plan because 13datacenter shows that 100% of each claims is to be paid? Don't trust what is on 13datacenter. My unsecured creditors are getting paid less than 1%, but 13datacenter shows they are all getting 100%. I am guessing you have much more than $1452 in debt which means you are not in a 100% plan. If that's the case, whatever is left after paying secured creditors and your trustee will go to unsecured creditors. You will probably not get a refund.

[angel2002]

I'm totally fine with not getting a refund.And yes we do owe unsecured creditors more than what the plan is supposed to pay.

I've heard not to trust the 13 data center as it is not the official court record. I'm not really worried too much about it at this point since we are almost finished. I'm just hoping we don't run into any problems this close to the finish line.