Q: Im in my 4th year of a chapter 13 & plan & arrears on mortgage are current. can i keep my escrow surplus check?
A: You may want to contact either your attorney or your current trustee. They will advise you how to handle the money.
Dear Reader: Since you are four years into the plan, it is obvious that the overpayment is a post petition asset. This being so, it is derived from property of the bankruptcy estate and your post-petition income. That income constitutes property of the estate under 11 U.S.C. § 1306(a)(2).
The question which then arises is "who is entitled to the property interest so created: the Trustee or you?" 11 U.S.C. § 1306(b)makes it quite clear that unless otherwise treated in your confirmed plan (unlikely), you as the debtor in possession are entitled to the property.
Should you consult legal counsel or the standing trustee to assist you with this matter?. Well, it is always your choice to do so but were I you, I would not: the former course would involve payment of legal fees to get to the same answer as above and the latter is at best unnecessary.
Your hard earned money funded the escrow in the first place so now enjoy the refund!
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