Chapter 13 Monthly Trustee Payment

[mhsaltz]

We recently made our first Chapter 13 trustee payment within the mandatory 30 day period. My question is how do payments 2-60 work? The first payment was due by June 21st. Does this mean that all subsequent monthly payments are due by the 21st or do you have until the end of the month on subsequent payments? It won't be a problem either way; however, this would help in planning our future budgeting. Thanks.

[SMinGA]

Depends on your plan. If you are to make payments directly, it will probably be due the 21st of each month. Or you may be set up on payroll deduction where they deduct an equal amount from each paycheck.

[lrprn]

We recently made our first Chapter 13 trustee payment within the mandatory 30 day period. My question is how do payments 2-60 work?

The Ch 13 monthly payment due date varies from court to court. Some follow the filing date, others choose an arbitary date like the first of every month.

Talk to your lawyer asap and find out exactly when your Ch 13 payments are due every month. This is very important information for you to know.

And fyi....if you are sending your payment to your trustee yourself, be absolutely certain to send your payment well in advance of the due date and send it using a trackable method (online payment through your bank, sending by certified mail that requires a signature on the receiving end, using a money order, etc.) to have proof you sent the payment just in case there's ever a problem with the payment not getting there on time. Good luck!

[tigergem]

I mail mine really early in the month, so that if it goes missing, I have time to deal with the situation before it is actually late.

[Universal]

My confirmation Order simply says..... per month. My employer writes a separate check each pay period to the trustee, but I personally make sure it gets in the box at the post office.

[Flamingo]

Your first Chapter 13 payment is due 30 days after filing; so if you file on 9/3/10 your first payment is due 10/3/10. Whatever the payment is that is listed in your filing is what is sent in. When your Plan is confirmed which should be about 60 days, more or less, from your date of filing, the payment may or may not adjust. You will or should receive a breakdown from either your trustee or your attorney on a quarterly or 6 month basis showing where the funds are going as you pay them in. When you send in a payment, it is first broken down and paid out to priority creditors (your attorney if fees are included), the trustee's fee, IRS, state taxes, etc. if they are in your plan. Secured creditors are next followed by unsecured. As one gets paid off, it allows more funds to be distributed to those under them Unsecured are the last to get totally paid by the end of your plan as to the amount allocated to them by your confirmed Plan.