Q: Where does the money go in a chapter 13 that creditors do not get but you listed them when you started it says they

A: First, your creditors receive payments in a Chapter 13 case as distributed by the Chapter 13 Trustee in your case. Second, the creditors who have been listed on the bankruptcy schedules are not always the ones who get paid in a Chapter 13 case. The creditors must file a proof of claim to be considered for payment in your case. If a creditor has not filed a proof of claim, they will not be paid by the Chapter 13 Trustee in your case. The creditors who do not file proofs of claim will be listed on any and all reporting from the Chapter 13 Trustee and will show as receiving $0.00.

Your payments made to the Chapter 13 Trustee go to the creditors you are required to pay first and are entitled to being first according to the priorities of creditors in the bankruptcy law. For example, arrears on your home mortgage are paid before your credit cards in a Chapter 13 bankruptcy. Also, the Internal Revenue Service is considered a priority creditor above your credit cards and other unsecured debts.

Simply put, if some creditors are listed as receiving $0.00 it is not a big deal as your payments are going to the required creditors that need to be paid in your Chapter 13 bankruptcy case.

Good luck with your Chapter 13 plan.

A: The model Ch. 13 plan provides that creditors must file a Proof of Claim to receive distributions under a confirmed plan, and even where the model plan is not used, the Ch. 13 trustees as a matter of rule/policy only make distributions to creditors which have filed a Proof of Claim.

Other than that, keep in mind that the Ch. 13 trustee takes a "scrape" off of every dollar that passes through his office (8-10%).

If, at some point prior to the end of your plan term, all your creditors which have filed a Proof of Claim have received the full payment, including creditors who may have filed a 'late" claim, then either you, as debtor, or the trustee, should acknowledge that your plan if fully consummated, no further payments need be made, a trustee's notice should be issued to any secured creditors to report the status of their secured claims, and your discharge should thereafter be entered.

A: If you have a bankruptcy attorney, you really should discuss this with your attorney. If you do not, the chapter 13 trustees in the EDVA Richmond Division publish individual chapter 13 case information on their websites at www.ndc13.com or www.13datacenter.com, so you can see what you have paid in, the list and classification of various claims, and the disbursements made, along with other financial information. I suspect you can find similar records available to you in all the districts and divisions in Virginia Claims are paid in the order set forth in the bankruptcy code and in the chapter 13 plan. Local practice sometimes influences how the claims are paid.