lisser

Extra Money at the End of Bankruptcy Case

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Hi all,

My husband and I have just made our last payment in our five year Chapt. 13 case about a week ago. We are beyond thrilled. During our case we were informed by our Trustee that the check sent by the Trustee to one of the accounts our Trustee was paying on came back in the mail as undeliverable. We got some formal notice from the Trustee on the issue that I didn't quite understand so I called the Trustee's office and spoke to someone who broke it down into English for me of what was going on. The representative from the Trustee's office stated that they had sent a payment to this claimant and it had come back as they had changed locations and there was no forwarding address. So I asked what happens and was told that we continue to pay per our plan and that it was the responsibility of the claimant to notify the Trustee of their new address so they could send payment to them.

Here we are years later, at the end of our case and this claimant has never done this so our case has an extra $3305 in it. My question is, what happens to that money? Do we get it back after a certain amount of time? Does the Court get to keep it? I am in Kentucky if that makes a difference. Obviously we would love to have that money back but I won't hold my breath. I won't be surprised to find out that there is some law that says anything left over goes to the Court but I don't really agree with that. I can understand a holding period that the claimant has to file something to retrieve their money but after a certain time, I would say the money should go back to the debtors. 

Thanks in advance for any guidance.  

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Looks like from what I can find out, you do not get the money back. Instead the money is deposited to the clerk of the Bankruptcy Court in the name of the creditor. The clerk then holds those funds for 5 years when they are sent to the US Treasury for holding until a claim is made by the creditor for those funds. Similar to unclaimed funds going to the state after 1 year. The case will close without the disbursement of those funds.

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I figured that we wouldn't get it back but I can't seem to find anything online when I google the situation. I asked the Trustee's office when we could expect to get our completion report bc our attorney says that we have to continue to pay until we get this. I made sure to pay our last payment two weeks early to try and avoid having to pay another payment. The Trustee's office says it takes them about one week to close cases out. That seems pretty quick. I wonder how long it will take from the time they close us out for us to get our completion report and discharge or is the completion report the discharge? 

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5 hours ago, WhoCares1000 said:

they are sent to the US Treasury for holding until a claim is made by the creditor for those funds.

I'd love to see the balance sheet on that account.....

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39 minutes ago, Harry Seaward said:

I'd love to see the balance sheet on that account.....

Would be larger than the balance sheet on the accounts that have been handed over to the various states. Makes me wonder if there is an easy way to check for any monies owed to you like you can for the states.

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4 hours ago, lisser said:

I figured that we wouldn't get it back but I can't seem to find anything online when I google the situation. I asked the Trustee's office when we could expect to get our completion report bc our attorney says that we have to continue to pay until we get this. I made sure to pay our last payment two weeks early to try and avoid having to pay another payment. The Trustee's office says it takes them about one week to close cases out. That seems pretty quick. I wonder how long it will take from the time they close us out for us to get our completion report and discharge or is the completion report the discharge? 

I am not sure how that works for a chapter 13 (my experience is with a chapter 7). The courts will probably get this done pretty quick because they want to get cases off of their docket as quickly as possible, especially easy cases like yours.

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Closing auditor says this situation won't hold our case up from being discharged and that they typically take a week from the time the check posts. Our check posted on 10/17 so I'm hoping it closes around the 24th and we get our completion report soon there after or at least before Nov. 9th bc that's when we would have to make another payment which I do not want to do. 

I am looking to buy a newer car towards the end of this year also but will need the title to the one I have now so I can sell what I've got. I'm sure that won't be in any hurry to get to me. Maybe I can call and request it. This is all so new to me but I am super excited to out from underneath all of this. I'm totally geeking out haaa!

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