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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I am at the end of a Chapter 13 bankruptcy filed in 2008. During

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I am at the end of a Chapter 13 bankruptcy filed in 2008. During the course of the bankruptcy, at my 2012 review with my attorney, I received some adjustments due to ill parent living out of state. Because of the adjustments, I have an over payment of about $2100. While the close is on June 1st, my income is still being garnished and money is still being paid to creditors. My question to you is what will happen to my 'over payment' of monies even when there is minimal balance on hand. Also, when will the income withholding stop?

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

This is a common situation,

WALLSTREETESQ :

if you have an overpayment typically the trustee will issue you the funds after you case is completed,

WALLSTREETESQ :

it is possible that the trustee may cut short the months in your plan to reflect the overpayment as well,

WALLSTREETESQ :

Your attorney would have to notify the trustee of the issue,

WALLSTREETESQ :

and ask that the garnishment stop as the overpayment can be used for the plan payments going forward.

Customer:

I guess my question is that it's an overpayment, but it was done retroactively. Meaning that the money was already sent to the creditors.

WALLSTREETESQ :

If it was sent to creditors by mistake,

WALLSTREETESQ :

you can file a motion to the court,

WALLSTREETESQ :

asking for reimbursement of the overpayment,

WALLSTREETESQ :

After you file a motion to have bankruptcy overpayments refunded, the court automatically grants the trustee and creditors an opportunity to contest the motion. If no objection is raised by the creditors or trustee, your motion will be granted. If an objection is filed, you will have to attend a hearing to state your case


WALLSTREETESQ :

Many times unless a motion is filed the trustee does not get involved with these matters,

WALLSTREETESQ :

if you do file the motion they will have to respond and you would either be given the money back,

WALLSTREETESQ :

or the case will be closed and the garnishment stopped.

Customer:

I just really want this to be over. Could I just forego the overpayment and let it stand?

WALLSTREETESQ :

Yes,

WALLSTREETESQ :

However, you should advise the trustee in writing about the matter, so he will consider it and not file a motion to dismiss.

Customer:

Okay. When I check on line, it states the following: ABOUT TO CLOSE-Z (6/1/2013). What does the Z mean?

WALLSTREETESQ :

The code Z, means that it is ready for closing, trustee use these codes but they have no legal standing.

Customer:

Well, thank you for your time and expertise. This has been quite a journey and I just want to be out of bankruptcy. I am, however, glad that most of my creditors were repaid.

WALLSTREETESQ :

Good luck,

Customer:

Again, thank you for answering my questions.

WALLSTREETESQ :

and if you have any further questions please do not hesitate to ask.

WALLSTREETESQ and 2 other Bankruptcy Law Specialists are ready to help you