Disbursement

[eap82]

Happy New Year!

I’m not confirmed yet but I’m curious everyone’s experience with disbursement of your payments once your plan is confirmed. Does the trustee make payments monthly or in larger amounts on a determined schedule? Is it trustee dependent?

[Clay3007]

In the beginning of mine the trustee never made a disbursement until my case was confirmed. Now i usually see that they pay on the final Thursday of the month. All my payments are sent by my employer and i just get an email from ndc that the payment was posted.

[flashoflight]

My trustee pays creditors the following month around my due date. It appears they hold the funds for 20-30 days before disbursement even if paid by TFS. This thread has me thinking whether it's worth it for me to pay the 59th and 60th payment by money order to make it faster. They have small creditors on a "do not pay" if the check is less than $15.

[justbroke]

Generally, the Trustee will not make any payments on any account before confirmation. However, they will generally pay what's known as "adequate protection" payments to secured creditors (home, car, etc). Usually if the Chapter 13 Trustee is making such adequate protection payments, it's almost always the "normal" payment amount.

Don't worry about whether the Chapter 13 Trustee is paying your mortgage or car on time. Your "timely" payments to the Chapter 13 Trustee are deemed timely to any creditor. (If your home mortgage payments are made outside the plan, not paid directly by the Chapter 13 Trustee, then you do need to make those payments on-time for them to be considered timely.)