How to Claim Overpayments From a Chapter 13 Payment Plan
Chapter 13 bankruptcy protection consists of a federal debt relief plan administered by a court trustee and approved by a bankruptcy court judge. The U.S. Bankruptcy Code allows an individual to begin debt repayment "without forfeiting property." Chapter 13 requires that the debtor maintain a source of income and "adhere to a payment schedule set forth by the court," according to Investor Words. Because Chapter 13 requires some portion of the debtor's unsecured and secured debts to be paid during the plan, overpayments are possible.
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Instructions
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Write a letter to the trustee. In Chapter 13 bankruptcy plans, the debtor is assigned a trustee to oversee payments throughout a five-year plan. Write a brief letter describing the overpayment and request a refund be issued. Include a declaration that states creditors will not be harmed in returning the overpayment. Mail the letter via U.S. Postal Service certified mail.
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Motion the bankruptcy court for a refund of the overpayment. In the event the Trustee denies your request for an overpayment refund in your Chapter 13 plan, go to the bankruptcy court in which you initially filed for protection. Ask the clerk for a form to file a motion to reclaim or refund overpayments.
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Complete the motion for overpayment form. The form will have sections to include the amount of overpayment; the date of overpayment; and the reason for the overpayment. Include any other details about the overpayment that is relevant to your motion.
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File the motion. Return the form for motion of overpayment to the bankruptcy court clerk. Attach any documentation that supports your claim of overpayments. Send a copy of the motion to all creditors included in your Chapter 13 bankruptcy plan using U.S. Postal Service first-class mail.
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Tips & Warnings
When 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.
