Tracy, CA asked in Bankruptcy for California

Q: I also received a summary of trustee’s final report and application for compensation. The last page looks like this:

Timely claims of general (unsecured) créditos totaling $35,118 have been allowed and will be paid pro rats only after all allowed administrative and priority claims have been paid in full. Does this mean I have to pay that or they telling me they will pay it or they paid it??

Related Topics:
4 Lawyer Answers
W. J. Winterstein Jr.
W. J. Winterstein Jr.
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA

A: The Trustee's report is about what the trustee will pay, or has paid, to creditors. Secured and priority claims are always paid before any distribution to general unsecured claims, which in either a Ch. 13 or Ch. 7 are usually discharged at the end of the case.

A quicker way to get this answer would have been to contact your trustee's office directly, or your lawyer.

Theodore Allan Greene and Yelena Gurevich agree with this answer

Ronald Holland
Ronald Holland
Answered
  • Bankruptcy Lawyer
  • Roseville, CA
  • Licensed in California

A: You need to review these claims and the provisions of your chapter 13 plan with your attorney.

There is no "they" that pays anything in chapter 13 besides you. You are the one paying into the plan and that is how creditors get paid.

What does that mean about how much your unsecured creditors get paid? You will have to look at your plan and ask your attorney.

If you didn't have an attorney, that makes YOU solely responsible for understanding the law and what is in your plan.

Harlene Miller
Harlene Miller
Answered
  • Bankruptcy Lawyer
  • Irvine, CA
  • Licensed in California

A: Plan payments you make to the Trustee are the funds used to pay allowed creditors and administrative expenses of the case that are incurred by the Trustee. It is important to review the documents sent to you by the Trustee to make sure the creditor list is accurate. If you do not have an attorney representing you in the chapter 13 case, you should seek advice from a local attorney to review the documents and provide further details so you understand what is happening with your case. A Trustee's final report usually is a report of what has been paid - not what is going to be paid. Earlier in the case, you should have received another report called Notice of Intent to Pay claims from the Trustee. You should also be receiving or have received Trustee reports throughout the case that provides information on the distributions made by the Trustee - two reports per year are sent out.

David S. Greenberg
David S. Greenberg
PREMIUM
Answered
  • Bankruptcy Lawyer
  • San Diego, CA
  • Licensed in California

A: All payments described in the trustee's final report will be paid by the trustee utilizing funds derived from non-exempt assets. You will not personally be responsible to make any such payments.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.