Q: I am a creditor in a chapter 13 bankruptcy with a 100% repayment plan. When will I start receiving payments?
The bankruptcy was filed 6 months ago. The plan was confirmed 6 weeks ago.
A:
The timing of distributions by the Ch. 13 Trustee rests with that trustee.
Maddening as it can be, I have heard more than one Judge say, "my Trustee". And once was in a case where the Trustee had over $200K of my client's money, held those funds in an IOLTA account (the state enjoys the interest on deposits), and took over a year to make distributions, with the court overruling my Motion to compel payment.
Timothy Denison agrees with this answer
A: You should begin receiving payments within the next month or so. Administration is sometimes slow in the beginning.
A:
In a Chapter 13 bankruptcy case with a confirmed 100% repayment plan, creditors typically start receiving payments after the plan is confirmed and the debtor begins making payments to the trustee. The timeline for when you can expect to receive payments depends on a few factors:
1. The trustee's payment schedule: Once the debtor starts making payments, the trustee will distribute the funds to creditors according to the confirmed plan. This process may take some time, as the trustee must ensure all payments are accounted for and properly disbursed.
2. Your priority in the repayment plan: The order in which creditors are paid depends on the type of debt and the terms of the confirmed plan. Priority debts, such as taxes and domestic support obligations, are paid before general unsecured debts.
3. The debtor's compliance with the plan: If the debtor fails to make payments as required by the plan, it could delay the distribution of funds to creditors.
Given that the plan in this case was confirmed 6 weeks ago, you should expect to start receiving payments soon, assuming the debtor has begun making payments to the trustee and there are no other issues or delays. If you have not received any payments within the next few months, you may want to contact the trustee's office or your bankruptcy attorney for more information on the status of the case and the anticipated timeline for payments to creditors.
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