QUESTION
If you are in a chapter 13 for over a year that was never confirmed, what happens to the payments the debtor made directly to the creditor.
Asked on Jun 27th, 2023 on Debtor and Creditor - Michigan
More details to this question:
The Trustee payments were returned to the Debtor; however the direct payments were never logged, yet accepted, and never returned, nor credited to the account. The Debtor also had a debt Protection Plan that was never honored. The creditor has a Lein. Garnishment Order, has refused to discuss Settlement Agreement repeatedly.
1 ANSWER
Reviews not shown
All payments made to the Creditor must be accounted for. Failure to do so violates the FDCPA.
If you are in need of legal counsel on this, please contact your bankruptcy counsel first or feel free to reach out to me. Creditors are more flexible in negotiating with counsel.
If you do plan on settling, having an amount of cash to start any payoff is very helpful.
Answered on Jun 28th, 2023 at 10:12 AM