Quick summary, I have been in Chapter 13 for almost 3 years. We had some credit cards and unsecured loans, plus a few months behind on the house. In order to keep the house we filed chapter 13 and with a 5 year repayment plan on the back due amounts for the house. The hosue payment was about 1600 plus 280 for back due amounts and about 200 for trustee fees.
I assumed the fees for the trustee where to manage the monies and make sure the mortgage company received their payments.
We where just approved for a modification on our home loan that forgives the back due amounts and puts them at the end of the loan. We need to amend out BK filing to change the payment amount.
I was just told by the lawyer that we no longer need to go through the trustee for the payment to the mortgage company, so there wouldn't be a wage garnishment for the mortgage payment. But there would be a wage garnishment for $175 for payment to the trustee. When I asked why the trustee would need to be payed $175 I was told that it will be going to pay off the rest of my unsecured creditors that where included in the chapter 13 filing.
I downloaded the ledger of all payments that went out for the last 3 years from my trustee account and the only payments made where to the trustee and to my mortgage company, nothing to other lenders.
So is my lawyer incorrect, is that money just a fee that the trustee charges to keep you in Chapter 13?
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