The Chapter 13 Process-Part 10
By Douglas Jacobs, California Bankruptcy Attorney on Oct 10, 2007 in Chapter 13 Bankruptcy, General Bankruptcy Information
So, the plan is complete. You’ve made your last payment to the trustee as required. What happens now?
Although practices vary from district to district, in most areas, the trustee assigned to the case will do most of the work upon completion of the plan. He or she will issue a discharge – a notice to you, your attorney, and to all of the unsecured creditors that you have completed the plan, made your payments and anything unpaid that was included in the plan as an unsecured debt is now discharged.
The notice usually contains a date when the discharge was effective. This can either be the date the last payment was received by the trustee, or the date that the last payments went out from the court to the creditors. Either way, sometime after that, the trustee will issue a final accounting showing how much was paid into the plan and where it all went. Save this – it can be very important if you get into an argument with a secured creditor as to what is still owed.
Lastly, the trustee will apply to the court relieving him or her of their duties in your case and requesting that it be closed. This is the final act – closing of the case.
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