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    Default If Chapter 13 Plan is Paid Early Can the Case Be Dismissed

    My question involves bankruptcy in the state of Georgia:

    I filed a Chapter 13 in October 2009. My amount owed was $10,000.00. I was told I had to sign a paper that the IRS would send my money to the trustee. I filed taxes early 2010 at which $6600.00 went to the trustee. My payment is $305.00 for five years. In November 2010 I received a letter from the Trustee that read balance on hand $270.00. In December 2010 I received a letter that read balance on hand $0.00.

    In January 2011 I received a letter that read if I file my taxes and the money comes to me, I have to give it to the Trustee. I called the trustee indicating that my monies from the IRS had been sent to them and I had a letter that read balance on hand "$0.00." In short...the woman said I owed $3860 and when I asked about my tax monies, she said she didn't know anything about that. I went online to the public website and observed that the monies were never applied.

    However; in February 2011 I received a letter that read "Motion to Dismiss" for nonpayment of $1200.00. The attachment now reflected the taxes taken last year. My attorney(s) whom I've spoke to several since I retained them has said different things. I was told the tax money would go to the trustee but I could write a letter two weeks after they received it and then I could get the money back. An employee said, "That money is hers..."referring to the Trustee.

    Last year an attorney said, if I paid it off early I wouldn't owe anything." Two weeks ago the attorney said I had to pay more than half or my case would be dismissed; or I could let it get dismissed and then file my taxes; I should lower my tax withholding and file; not file my taxes; file a chapter 7; well we don't advise you to file a chapter 7 because you don't owe that much; you shouldn't have paid the large amount of money; you need to stay in the plan for at least 19 more months before your case can be dismissed. I am really having a comprehension problem which mainly is because I have been told so many different things. I do not understand how or why I would be told so many different things.

    Out of fear I paid them all that I could come up with which was $610.00 at which I was informed that the head paralegal would call the trustee on the Thursday that I brought the money in and the court case would be dismissed. However; she never returned.
    My call was returned Monday evening at which I was told, "You don't have to go to the hearing. An attorney will go for you. You will probably be on strict compliance." I asked if I could go anyway and she said you don't need too but told me the room that the case would be in. I did go to the hearing. I asked the attorney if I could talk to the judge because I don't owe anything else. The attorney said, "The judge wouldn't entertain listening to you over taxes being taken. Make an appointment to see me on Thursday."

    This experience has overwhelmed me because I can't seem to get the truth or a clear understanding as to why I have to pay. The trustee has my taxes; I made all of my payments; I've overpaid through no fault of my own but I still have to make monthly payments for at least another 19 months. I know this is a lot but if someone would offer some advice or explain what is happening or even what other rights I may have...I'd be most grateful. Thank you for your time.

  2. #2
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    Default Re: If Chapter 13 Plan is Paid Early Can the Case Be Dismissed

    Assuming your repayment plan is not for 100% of your debt, if you pay off your plan within the first three years the trustee may re-assess how much disposable income you have and impose a higher payment.

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