Early payoff request ---- payoff letter received

[patieboy38]

Hi all,
So I requested an early payoff amount. I'm in a 100% base plan payback but it only amounts to about 25% to 30% of the claims. I

was a bit nervous that I would get a payoff of all claims which is about 50K more than the base but surprisingly it was in line with the balance of my base pan (a bit over but close enough).

Only stipulations it says is if you are using proceeds from sale or refi of real estate and paying creditors outside the plan, I need to show proof - which is not the case.

During my request, I stated the money is from general savings and tax refunds over the years (I wasn't required to turn in my refunds).

Anyway, it says the case will be closed once full audit is done - wondering what they will dig into once the audit begins? I've been building my credit back up and have new credit lines on my report, will they check that ? I suspect it's just to make sure all creditors included in the case have been paid appropriately.

Anyone go through a similar situation? Is the payoff amount fairly reliable or is it subject to change ?

Thanks gang...will keep all posted.

ps: I'm 7 months from completion so I'm pretty close.

[despritfreya]

The audit has nothing to do with your finances. It is the Trustee's final accounting and has to do with the Trustee verifying that he/she has paid everything that is required and that all payments sent over the Plan length have been cashed by the creditor. It also is an audit to determine if you have complied with all of the non-monetary requirements of the Plan, like sending copies of tax returns if so required.

The difference between the payoff statement and what you calculated most likely has to do with interest calculation paid to secured creditors as well as the percentage that must go to the Trustee. Cut the check and you are done with the payments.

Make sure you have taken the second credit counseling class and have filed the certificate of completion and find out if there are any other forms required in your jurisdiction like a certificate or declaration that you are entitled to a discharge.

And. . . congratulations on a successful reorganization!!!!

Des.

[drew999999]

Congrats on seeing the finish line! Feels great, doesn't it? Like Des advised, be sure to take your 2nd credit counselling class and have the certificate(s) filed. Some areas say that this must be submitted prior to making your last payment to the Trustee. Very easy course, but took about 2 hours if I remember correctly. Spent most of that time clicking around to keep it from timing out . Good information in it though.

[LadyInTheRed]

Some areas say that this must be submitted prior to making your last payment to the Trustee.

It's actually a rule for all areas, but a court can extend the time:

Federal Rule 1007(c).

In a chapter 7 case, the debtor shall file the statement required by subdivision (b)(7) within 60 days after the first date set for the meeting of creditors under §341 of the Code, and in a chapter 11 or 13 case no later than the date when the last payment was made by the debtor as required by the plan or the filing of a motion for a discharge under §1141(d)(5)(B) or §1328(b) of the Code. The court may, at any time and in its discretion, enlarge the time to file the statement required by subdivision (b)(7).

(subdivision (b)(7) is the statement of completion of the course)

[patieboy38]

The audit has nothing to do with your finances. It is the Trustee's final accounting and has to do with the Trustee verifying that he/she has paid everything that is required and that all payments sent over the Plan length have been cashed by the creditor. It also is an audit to determine if you have complied with all of the non-monetary requirements of the Plan, like sending copies of tax returns if so required.

The difference between the payoff statement and what you calculated most likely has to do with interest calculation paid to secured creditors as well as the percentage that must go to the Trustee. Cut the check and you are done with the payments.

Make sure you have taken the second credit counseling class and have filed the certificate of completion and find out if there are any other forms required in your jurisdiction like a certificate or declaration that you are entitled to a discharge.

And. . . congratulations on a successful reorganization!!!!

Des.

Thanks Des, appreciate all the good advice over the years!

[patieboy38]

Congrats on seeing the finish line! Feels great, doesn't it? Like Des advised, be sure to take your 2nd credit counselling class and have the certificate(s) filed. Some areas say that this must be submitted prior to making your last payment to the Trustee. Very easy course, but took about 2 hours if I remember correctly. Spent most of that time clicking around to keep it from timing out . Good information in it though.

Got it Drew . Thanks so much

[patieboy38]

Thanks Red!