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  1. #1
    Join Date
    Oct 2012
    Location
    Wisconsin
    Posts
    2

    Question Who is Paid Under a Chapter 13 Plan

    My question involves bankruptcy in the state of: Wisconsin. We filed Sept 2008 on a 5 year repayment plan of 100% of our debts. The final plan required 100 % payments on all secured debts, and several unsecured debts that had filed for/requested repayment. However, several did not file under the repayment plan and were subququently listed as Zero Claim Amt, Zero Balance Owed on all Bankruptcy Court semi-annual reports received which lowered the amount we owed.

    With half of our income tax returns received included, the amount owed according to the Court Report date July 2, 2012 was only $259.00. Our monthly payment is schedulted at $582.00. I called the court and asked if we would be paid in full with the next payment and was told we are scheduled to pay at 82% and must continue making payments of $582 for the full 5 years which will take us through September 2013. The court clerk did say in July our case was before the judge for review. What would he be reviewing if not the balance due on the case?

    I contacted our attorney (after 8 phone calls) he said the court report we had been recieving for the past 3-1/2 years was incorrect and we must also continue to make the payments of $582 until September of 2013. Our attorney indicated he would take no steps to ask for dismissal.

    Are we in fact paying off the debts that are listed as zero claims at the 82% level? If so, why is that not made clear in both the reports and the attorney's paperwork at the time of the bankruptcy? How could the Bankruptcy Court have been sending us incorrect reports for 3-1/2 years. Once the bankruptcy was filed we received no replies to any inquires we made of our attorney (there were previous creditors that tried to collect from us). Going back to him is a lost cause. Thank you to anyone that can help figure this out.

    Over the past few years with in increase in the cost of living, medical expenses, etc. we dearly need to get out from under this bankrupty payment ASAP.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Who is Paid Under a Chapter 13 Plan

    Quote Quoting CarolR
    View Post
    What would he be reviewing if not the balance due on the case?
    The trustee's annual report?
    Quote Quoting CarolR
    Are we in fact paying off the debts that are listed as zero claims at the 82% level?
    We have no access to your case file and know only what you have told us. Your best bet is to ask your lawyer.
    Quote Quoting CarolR
    Once the bankruptcy was filed we received no replies to any inquires we made of our attorney (there were previous creditors that tried to collect from us).
    You just told us that you contacted your attorney about these issues and that he responded to your inquiry. I would venture that the issue is that he has not been retained for your ongoing legal matters, not that he won't advise you if you retain him and pay him for his work. There are also many other bankruptcy lawyers you can retain, should you choose.

  3. #3
    Join Date
    Oct 2012
    Location
    Wisconsin
    Posts
    2

    Default Re: Who is Paid Under a Chapter 13 Plan

    The contacts made to our attorney were to ask if we needed to set up an appointment to discuss the issue in person, and what fee would be required,

    Our original agreement included followed-up service on problems that arose from the bankruptcy. Regarding initial bankruptcy filing problems from creditors I composed the letters, referred to the bankruptcy law in the State of Wisconsin, and handled the follow-ups myself. Once we parted with our attorney on the court steps he did not keep his end of the deal.

    Regarding the latest and I hope last problem, after eight phone calls he finally called my home and spoke to my husband, leaving the reply given above. I was not home, did not get the message in person, my husband did not ask him questions about the discrepencies. I'm left with only the 'bones' of the discussion.

    Since I posted this, I again contacted the Trustees offices, spoke to a different person who reviewed the balance, said our payment plan was for for 100% and asked if I had received a letter from the Trustees offices in July (I had not). She then put me on hold for ten minutes to check with someone about the account. When she returned she said we would be getting a letter within ten days.

    According to the Trustees report I received in July, all debts should in fact, been paid in full. My attorney was incorrect as was the clerk I spoke to last time in the Trustees office. If I only had a balance due of $239 why would I have been required to continue making payments of $582 for an additional year? That makes no common sense what-so-ever, yet no one would stop and think about it.

    The clerk I spoke to on Friday assured me that creditors that did not file for repayment at the due date, which was over 4 years ago, would not be receiving any funds. At this time, I still have no idea where the extra payments have gone, if the trustee will be refunding me for the overage or not. Since she was a clerk and not able to offer legal advice, I was told to make this months payment as well. So now it will be wait and see if a letter from the Trustees office arrives.

    Mr. Knowitall ... no reply would have been better than a condescending reply. If you are not an attorney you should not be posting replies on this forum. If you are an attorney, you should have more respect for people under stress before you 'venture to guess'. Next time try, 'May I ask"

    There are not many attorneys that bother billing for only an hour of work. We live in a rural area, I'm disabled, and just getting to the attorney's office involved a drive of 1-1/2 hours. Of course, any and all, work I can do from home is a necessity.

    - - - Updated - - -

    I received a letter from the Bankruptcy Court today confirming my Chapter 13 plan is paid in full. All that is required to discharge the bankruptcy is to complete a form with two questions on it, neither of which pertain to our financial activities. That was printed, signed and mailed to the court today. There was no word on what would happen to the overpayment we made. I will wait until I receive a full discharge letter from the court before pursuing any further contact with the Trustees Office. This is one victory I do not want to shut a door on after I request a refund on a $1,500 overpayment.

    It has come to mind that over the years, when in need of legal help, my victories have been won due to my own persistance.

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