how trustee disburses monies

[wayne-o]

What is the name of your state?TN
I am in a chapter 13 and my attorney fees were paid through the plan. While the attorney was being paid the trustee would take any leftover money and give to secured creditors like car/ mortgage arrears. This month there was an extra pay period and my money from attorney payment was freed up. The trustee started paying unsecured creditors. I understand that the car has a monthly payment set up through the duration of the plan, however, I thought the trustee would clear up the mortgage arrears before paying unsecured.
any thoughts?

 

[wayne-o]

any thoughts

 

[Ladynred]

The usual hierarchy is:

1. Priority – Administrative Costs, Attorney Fees, and Federal Taxes Owed.

2. Secured – Creditors with claims on your property, such as your home or car.

3. Unsecured – Everyone else.

The Trustee’s office does not pay anything to unsecured creditors until the priority claims and secured claims are current in monthly payments.

 

[wayne-o]

thanks for responding ladynred. those were my thoughts too. I looked on the trustees website and they had issued checks to several unsecured creditors while there is still a balance on the mortgage arrears. Since the mortgage company has a claim to the house, my thoughts were that they would be paid first. Should I call trustees office and ask?