First Payment

[poormama]

When is the first plan payment technically? Do you pay the plan payment while you are waiting for the 341 meeting, court approval, etc?

I'm trying to find the steps, yep I am that anal.
1. Meet with lawyer
2. Get things up to date that aren't included in Chapt 13 (homeowners assn)
3. Retain lawyer, have 1-3 hour meeting to go over statements, debtor info, etc.

That's all I got so far, our lawyer gave us the top 2 - he said to stop paying credit cards, get the car pmts caught up (we're only 1 behind), get the first mortgage caught up so we don't have to include it into our plan and all the other little things like utilities. From there, I'm just curious as the steps and payments, do they always happen on the first of the month?? Do they check with your utilities, mortgage holder, lease holder to make sure you are making those pmts as well as the plan pmt?? Sorry for all of the questions. I have been reading and reading to see if I could find the answers.

[SMinGA]

Generally the first payment is due 30 days after filing, and then every 30 days. So when your payment is due is simply based on when you file.

Other things may be district specific. For my district - I will have to send confirmation of my mortgage payments (made directly, me to mortgage company) to my attorney who will forward them to the trustee. Not sure if that is just up to confirmation, or for the entire plan however.

[justbroke]

When is the first plan payment technically? Do you pay the plan payment while you are waiting for the 341 meeting, court approval, etc?

This depends entirely on your District! In Most cases, the first payment is due prior to the 341 Meeting (30 days after filing).

I'm just curious as the steps and payments, do they always happen on the first of the month?? Do they check with your utilities, mortgage holder, lease holder to make sure you are making those pmts as well as the plan pmt?? Sorry for all of the questions. I have been reading and reading to see if I could find the answers.

Chapter 13 cases are "tailored" to a specific person. I can't tell you how or why or how much your payment or step payments will be. I can't even tell you if stepped payments are allowed or won't be challenged by the Trustee.

In some Districts, you must pay all secured debt "inside" the plan and through the Trustee. They don't check your utilities and other things, but if you get into trouble, this could cause trouble with your case.

[KAKRN97]

In my District(Northern Ohio-Youngstown) I had to have the first payment mailed to the trustee within 10 days of filing. Was left with less than $150 after making that first payment for two weeks!! My payments are due by the 15th of the month and I have to mail them to Tennessee

[poormama]

$150 for 2 weeks! Whew! That would be tough considering our gas is approximately $80/week to fill both cars - need to get to work and school.

[poormama]

I can't tell you how or why or how much your payment or step payments will be. I can't even tell you if stepped payments are allowed or won't be challenged by the Trustee.

Thank you for your response. I didn't word my question well, I know that you can't tell my how much my payments would be nor anyone else. Just trying to look for some guidance. I should have just kept researching the question.

[jmac]

In my District(Northern Ohio-Youngstown) I had to have the first payment mailed to the trustee within 10 days of filing. Was left with less than $150 after making that first payment for two weeks!! My payments are due by the 15th of the month and I have to mail them to Tennessee

This is the part i dont get and scares the hell out of me. Why wouldn't you shoot for a better deal then a 150 a month? Is that 150 for food and gas? If so i thought that was part of your dmi?

[SMinGA]

We don't know the details - don't assume that Kakrn got a 'bad deal'. May just be that based on how due dates fell for her other obligations, this first payment was rough to make.

Ideally - discuss this question w/ your attorney in advance and consider when your other obligations are due. Like you probably don't want to have to make a plan payment out of the same paycheck that you have to use to pay your mortgage. Unless you're facing a foreclosure sale or some other urgent reason to file ASAP work with your attorney so that your payment is due when is best for your pay cycle.

Also, if you are paid weekly or bi-weekly ask your attorney about tailoring your plan payment to follow your pay schedule. Like if your monthly plan is $500/mo - you may be better off making weekly payments of $115.39 (if paid weekly) or bi-weekly payments of $230.77 instead of once a month at $500. Same end of year result...

This is the part i dont get and scares the hell out of me. Why wouldn't you shoot for a better deal then a 150 a month? Is that 150 for food and gas? If so i thought that was part of your dmi?

[jmac]

Sorry didnt mean to sound so negative kakrn, I just fear the worst also when i file and think im not goign to have money to live on also.

[SMinGA]

And I was trying to keep readers from fearing the worst. I cannot stress how important it is to plan well... Think about when things are due, when paychecks come in, and when your plan payment & mortgage payment will be due. And make your atty work with you, to get the plan payment set up so you can be successful.

Sorry didnt mean to sound so negative kakrn, I just fear the worst also when i file and think im not goign to have money to live on also.

[jmac]

10-4 SMinGA, you have great advice thanks.

[KAKRN97]

This is the part i dont get and scares the hell out of me. Why wouldn't you shoot for a better deal then a 150 a month? Is that 150 for food and gas? If so i thought that was part of your dmi?

My husband went back to work on April 1 after being laid off for 15 months. I couldnt file Ch 7 because of his higher income with him being back to work.

I didnt realize I'd have to pay the 1st pymt in 10 days. I just had to put 3K in car repairs on my '03 Escape. Thats why I was short. My mother in law lives with us so she buys the groceries as her room&board. I had to save out gas money for my vehicle but I made it thru ok.

Now hubby is laid off again so I'm converting the Ch 13 to a Ch 7 soon, like next week!!

[jmac]

Well good luck with everything KAKRN, I wish i could do a 7 but not going to happen. Guess good planning is what's needed to be done to complete a 13.