Refund question

[Cubby214]

Hello all. I have just made all 60 payments. My base plan was $54000 and I had a 35% payback. My question is: on NDC, the trustee has not yet distributed the equivelant of my last two payments. By my calculations, that is about the amount over the 35% I owed. What will eventually happen with this money? Will it eventually be split amongst the creditors, or refunded back to me? Also, for the last few months the NDC changed my percentage from 35% to 100%. When it first happened, I called the trustee and was told that was normal and it was just how the computer tracks the payments near the end. I dunno if that info would help answer my questions.

I received the letter from the trustee saying my plan was complete and they sent the form about child support (which I never owed). It said to sign it and return to the court but had no address. I called my attorney and he said it is signed electronically and he would take care of it. He said it should take about 30 days to get discharge. I can't wait...five years was a long journey. Thanks in advance for any help.

[kornellred]

Your Chapter 13 plan is finished when the confirmed plan base amount is accounted for. If your plan base amount was $54K, any excess amount will be refunded to you - even if you insist that the trustee keep it. Forget all that percentage nonsense - it never mattered to begin with.

[Cubby214]

When you say "any excess amount", I'm not sure what you mean. I paid in exactly what my base plan was. So all the creditors got their 35%, and there is roughly two months of payments that haven't been dispersed. So is that amount considered "extra" and refunded, or will it just be divided up to each creditor equally? Sorry if I'm not explaining it correctly.

[Cubby214]

Also, I probably should phrase it as: my base plan was 54k and I paid in exactly 54k. Maybe that makes it clearer.

[LadyInTheRed]

The percentage to creditors was only an estimate. You will not receive a refund. Whatever is left will be divided among unsecured creditors, after the trustee fees are paid.

NDC has shown that my creditors get paid 100% from the beginning even though they will receive less than 1%. It is your confirmed plan that determines how much each creditor is paid, not what shows up on NDC.

[woeisme]

I did get a refund from my trustee, because they didn't get the cease wage order paperwork to my job until I'd made a couple extra payments. If you just paid what you were originally required to, you probably won't see a refund, but if you made extra payments, you might. Your 54K might be more than 35%, but you have to consider trustee fees and that what is really required is what they calculated as your disposable income for the duration of the plan, if that's 54K, doesn't matter whether that's above or below 35%, that's still what you are required to pay. In that case, it will get distributed to your creditors, not refunded.