Can I deposit this check

[Granny]

On January 23, I replaced my home owner's insurance policy with a policy that was almost half the amount of the previous policy. The replacement policy went into effect two months before the previous policy expired. This triggered a refund of the unused premiums from the former insurance company. I received a letter from Chase Home Mortgage informing me that if there was a refund, it was to be sent to Chase. Because of the decrease in premiums, my escrow account will be over the required amount after the next monthly payment. This overage does not include what we will be paying through the Chapter 13 plan. After those payments are made to Chase, our escrow account will be more than $1200 over the required amount.

Must I send this refund check to Chase, even though it will cause an even greater overage in the escrow account? It sure would help to have the extra $300 to cover this month's payment to the trustee.

[SamanthaJones]

That's ridiculous on their part.

You pay the escrow fees that pay the insurance.
If the taxes or insurance go down, your escrow will eventually decrease.
If stuff goes up, YOU pay the increase. It is not Chase's money.

[SinkingFast]

Granny,.........

The safest thing you can do is call your attny and ask what you can or cannot do with the check.

The Trustee is in control of your Estate until you are finished with your Plan Payments.

If your Plan Payments were figured using the "old" insurance premium/month, that refund check could be considered "Disposable Income" and the Trustee could take the check "on behalf of your Creditors".

Could be you have a Trustee who does not care much what happens as long as you make your Plan Payments on time. And this might especially be true of your case. Considering you are below the Median, qualified for Ch 7, and only filed Ch 13 to bring Secureds current.

I'd suggest you call your attny and get his/her input on what to do with the check.

[Granny]

Granny,.........

The safest thing you can do is call your attny and ask what you can or cannot do with the check.

As usual, the attorney did not return my email. Oh what a surprise!!!

If your Plan Payments were figured using the "old" insurance premium/month, that refund check could be considered "Disposable Income" and the Trustee could take the check "on behalf of your Creditors".

The premium was included in my monthly mortgage payment as escrow, and that has not changed as of yet. In fact it won't change until June.