Local Rule 3021-2: Processing Returned Creditor Overpayments After Final Distribution in Chapter 13 Cases
Bankr. W.D.N.C. — General rule
Local Rule 3021-2 Processing Returned Creditor Overpayments After Final Distribution in Chapter 13 Cases Returned Creditor Overpayments. Following the final distribution to creditors in a Chapter 13 case, the Chapter 13 trustee is authorized to process returned creditor overpayments as follows:
(a) Composition (or "Percentage") Plans. The returned creditor overpayments shall be refunded to the debtor following the filing of the Chapter 13 trustee's final report and account.
(b) Base Plans.
(1) Plans paying all claims in full. The returned creditor overpayments shall be refunded to the debtor following the filing of the Chapter 13 trustee's final report and account.
(2) Plans paying less than all claims in full. If the returned creditor overpayments total $500 or more in any case, the Chapter 13 trustee shall disburse the overpayments to creditors pursuant to the confirmed plan, with any excess funds then remaining to be refunded to the debtor following the filing of the trustee's final report and account.
If creditor overpayments total less than $500 in any case, the overpayments shall be deemed to be abandoned to the Chapter 13 trustee upon the closing of the case for the purpose of deferring future costs of administration.