Plan payment shorted

[sharina]

A family member that is in a 13 has a tiered plan and the payment was due to increase this spring. One month he sent in an amount and they sent the check back to him because I guess that month was the start of the increased payment. Anyone had this happen or heard of this?

[lrprn]

The payment due is the payment the court and trustee expect to receive. If the amount sent does not match the amount due, the trustee has every right to send the partial payment check back to set up getting the full amount due on one check.

It sounds like your family member did not know which month the increase was going into effect - true? Has he/she contacted their lawyer to ask if the increased payment has indeed gone into effect?

If the payment has indeed been increased as the confirmed plan promised, your family member needs to send the correct payment amount immediately to the trustee. Has that been done yet?

[sharina]

Oh, I am sure he has taken care of it. I would never give family members advice on 13's - too many variables. I would tell him to contact his attorney, but we have the same attorney and he pretty much loses interest in his clients after the 341.

I really was just wondering if this had happened to anyone. When I searched threads, I found a couple where some were advised by forum members to send in a partial if that's what they had. It would seem a partial payment, at least in some districts, then could be a problem.

[justbroke]

I really was just wondering if this had happened to anyone. When I searched threads, I found a couple where some were advised by forum members to send in a partial if that's what they had. It would seem a partial payment, at least in some districts, then could be a problem.

The problem is the UST District, not the Bankruptcy Court District. The UST uses a so-called lock box for payments. So, it's not the particular Chapter 13 standing trustee who even controls it.

When you are going to be short on a payment, the people to contact are your lawyer first, the your Trustee (via your lawyer, or direct if you are pro se). The Trustee's do not just like random, unannounced "short" payments. Failure to contact your lawyer and/or Trustee will get your case dismissed because any short payment, is not considered a payment.

The only time I could think they wouldn't accept a payment at the lock box, is if it was a personal check.

[sharina]

Neither of us send payments to a lockbox (yes, I am familiar with lockbox) and we do send personal checks each month. I guess in Minnesota, they may not be keeping up with technology for payment processing. The trustee's website has not even been updated since 2003 or at least that's what it says....

[justbroke]

Neither of us send payments to a lockbox (yes, I am familiar with lockbox) and we do send personal checks each month. I guess in Minnesota, they may not be keeping up with technology for payment processing. The trustee's website has not even been updated since 2003 or at least that's what it says....

I know it's cold and frozen up there in Minnesota -- well it's thawing now -- but they do get new technology there too!

Wow, your Trustee is nice. Ours (lockbox) will return all personal checks without even looking at them.