(Published) - In re Gonzales; Case No. 09-27194 HRT; Order entered June 9, 2015 (11 U.S.C. § 1328(a); FED. R. BANKR. P. 3002.1).

The Court confirmed the Debtors' chapter 13 plan (the "Plan"), which included a provision to cure a prepetition mortgage default and to make current mortgage payments directly to the mortgage creditor. Over the course of the 60 month Plan, the Debtors made all of their payments to the chapter 13 trustee (the "Trustee"). Thereafter, the Debtors filed certifications that they had complied with all of their payments and obligations under their Plan. Upon the Trustee filing a request for discharge, the Court entered the Debtors' discharge. Prior to certifying the case for discharge, the Trustee had served a notice on the mortgage creditor under Rule 3002.1(f) giving notice that the Debtors had paid the full amount required to cure the pre-petition mortgage default. The creditor filed a timely response under Rule 3002.1(g). It agreed that the pre-petition default had been cured. However, it alleged a post-petition default in direct payments of over $49,000.00 or about 37 missed payments. No interested party sought a Court determination under Rule 3002.1(h) or otherwise informed the Court of the alleged default prior to discharge. The allegation of Debtors' failure to make the required payments directly to the mortgage creditor came to the Court's attention shortly after the discharge was entered. The Court entered an order for the Debtors and the Trustee to show cause why the Debtors' discharge should not be vacated as improvidently granted. The Debtors did not dispute the default. Following a hearing on the matter, the Court held that 11 U.S.C. § 1328(a) only authorizes the Court to grant a discharge in a chapter 13 case "after completion by the debtor of all payments under the plan" and direct payments to a creditor pursuant to a provision of a confirmed plan are "payments under the plan." The discharge in this case was improperly granted and the Court vacated the Debtors' discharge because they did not make all payments required under the terms of their confirmed Plan.