QUESTION
What happens to any money left over after all debts have been paid?
Asked on Aug 10th, 2014 on Bankruptcy - California
More details to this question:
I was ordered to pay creditors 36.52% of amount owed to them. My repayment plan is 36 months. I have 6 months left on my repayment plan and all creditors have been paid. Will I get a refund after my discharge?
5 ANSWERS
Once the Chapter 13 Trustee pays all allowed claims in full, she should issue a notice of final payment. Assuming you have meet all other requirements for discharge, a discharge order will be entered shortly after the final payment.
Answered on Aug 15th, 2014 at 5:57 PM
If the plan is complete you will just get an earlier discharge not a refund.
Answered on Aug 15th, 2014 at 5:56 PM
The money paid into your Chapter 13 Plan also has to pay the trustee for the work performed in your case. If you had an attorney, your attorney fees will also need to be paid from the money paid into your plan. But if there actually is an overpayment, you will get your money refunded by the trustee. But your version of the math may not match the court?s math because there are a number of things you have failed to consider, such as the fact that your tax refund does not go towards paying the % you were ordered to pay credits as a result of your monthly payment. Tax refunds are a bonus that increase the distribution % to your creditors.
Answered on Aug 15th, 2014 at 5:56 PM
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When you say "all the creditors have been repaid", do you mean they have been repaid 36.52%? In that case any additional payments will be used to pay your creditors until they reach 100%.
Answered on Aug 15th, 2014 at 5:56 PM
Unless all unsecured creditors who have filed allowed claims have been paid 100% of their claims, you will need to finish making 36 full monthly plan payments in order to get your Chapter 13 discharge.
Answered on Aug 15th, 2014 at 5:56 PM