If one has filed a Chapter 13 Wage Earner Plan and is already making payments with the Trustee will they be debt free at the end of the 5 years their lawyer stated. Will they be liable for any late payments, or in this instance a balloon payment was on a loan. The party was not delinquent on any bills when this was initiated. Loan payment bills are still being sent showing several thousand dollars in late fees and I don't understand why. This is the only creditor contacting the party with monthly statements. Payments are being made but the principle is not going down on the statement.
Chapter 13 question
1 Comments:
You are correct that the point of filing a Chapter 13 Wage Earner Plan is to put in place a repayment plan with your creditors, so that at the end of the plan, which in your case is five years, you will be debt free.
It is possible that the creditor has not yet updated their system to reflect the fact that the Chapter 13 plan has been filed. It is not unusual for you to continue to recieve statements until they have updated their system.
You should start by contacting your attorney; they can contact the creditor and make sure they have the appropriate paperwork. You could also contact the trustee to ensure that they payments are being sent to the creditor.
By Bankruptcy Expert, at 2:20 PM
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