What's the timeline like?

[cspa522]

We are signing the paperwork on the 22nd of November, and bringing a cashier's check to our attorney on November 24th. When will our first payment to the trustee be due? Right then, or at the confirmation hearing? Or once the bankruptcy is approved will they assign us a monthly due date?

Confused.

Thanks!

[FishersMike]

My attorney explained that I need to make my estimated payment on the first payday after it is actually filed. So my 13 is to be filed on 11/10/10 so I would need to send my payment in on the 19th.

[newbie2]

Your first payment is due in the trustees office within 30 days of your filing date. Make sure your attorney notifies you of when the date will be (of the filing) and he/she needs to give you your case number. (Case number goes on the check that you will make out to the trustee).

I just noticed FisherMikes response, and realize it is different than what it is in my district. This is one of those "ask your attorney" questions for sure!

[cspa522]

Okay, I just heard back from my attorney. She says they will expect the first payment about a month after we file. So I'm looking at about the 24th of every month. Does this mean that if I make a payment of, say, $1000, on December 24th, but my plan goes up at the confirmation hearing or whatever it's called, that I'll be expected to make up that difference during the plan?

[FishersMike]

And maybe mine is this way as I am going to do wage deductions so my attorney is having me make such payments as though was already coming out of my check and the wage orders take some time. I believe technically the requirement is in 30 days. But since I get paid every two weeks if I do it this way I won't have to come up with a whole month worth at one time, so I also prefer it.

[Pandora]

Okay, I just heard back from my attorney. She says they will expect the first payment about a month after we file. So I'm looking at about the 24th of every month. Does this mean that if I make a payment of, say, $1000, on December 24th, but my plan goes up at the confirmation hearing or whatever it's called, that I'll be expected to make up that difference during the plan?

Cspa - your payment has to be in before the 24th - it takes on average 7-10 business days for our payment to be credited to our account in our CH. 13. Most payments go to a PO Box first, are logged, then that info is forwarded to the trustee from what I understand, the trustee's arent allowed by law to receive the monies directly. Not sure if thats the case across the board, or just where we are (VA). If you're late in paying, your trustee will move to dismiss your case - so ensure you allow sufficient time for your payment.

[cspa522]

Cspa - your payment has to be in before the 24th - it takes on average 7-10 business days for our payment to be credited to our account in our CH. 13. Most payments go to a PO Box first, are logged, then that info is forwarded to the trustee from what I understand, the trustee's arent allowed by law to receive the monies directly. Not sure if thats the case across the board, or just where we are (VA). If you're late in paying, your trustee will move to dismiss your case - so ensure you allow sufficient time for your payment.

So does that mean I have to mail in the first payment by, say, the 14th of December to make sure it's there on time? Doesn't anyone do direct deposit in this world?! (ha, funny, joke!)

[Pandora]

So does that mean I have to mail in the first payment by, say, the 14th of December to make sure it's there on time? Doesn't anyone do direct deposit in this world?! (ha, funny, joke!)

Yep, thats exactly what it means - and also account for weekends/holidays as mail doesnt run on Sundays/holidays, so keep that in mind.

I've yet to see any trustee take a direct deposit. We are lucky in that our trustee accepts personal checks, money orders, cashiers chks, etc - however DD is out of the question. Just so you know, your trustee may require and order your payment to be taken out of your paycheck and be paid that way; in that instance your work would cut a check to the trustee and make the payment for you. It all depends on what the trustee wants.

[cspa522]

Yep, thats exactly what it means - and also account for weekends/holidays as mail doesnt run on Sundays/holidays, so keep that in mind.

I've yet to see any trustee take a direct deposit. We are lucky in that our trustee accepts personal checks, money orders, cashiers chks, etc - however DD is out of the question. Just so you know, your trustee may require and order your payment to be taken out of your paycheck and be paid that way; in that instance your work would cut a check to the trustee and make the payment for you. It all depends on what the trustee wants.

I'm pretty sure I've brought that up with my attorney before and she said they only accept cashier's checks or money orders. So I suppose once a month I'll be going to the bank. Super fun. I wish they took personal checks, but oh well. I do NOT want my very small office finding out about this if I can help it. I'm totally fine with filing BK, but I don't need the idiots around here being snotty about it.

[Pandora]

I understand how you feel, but actually you'd be surprised at how employers react in this economy when it comes to finding out about an employee filing BK. As my hubby's employer told him.. "hey - we understand, in this economy more people are going to be filing." *whew* Big relief!

Hopefully your trustee wont issue an order for direct payment from your employer Be aware though that if you are paying with money orders, you need to ensure you keep every copy as well as track when it gets there (I'd recommend some sort of tracking service from USPS). It will be up to you to prove you made payments to the trustee on time, every time - should something go amiss. This is why its easier for us to do payroll deduction because it automatically gets tracked and if there's an issue, we have proof it was taken out of hubby's paycheck. In the beginning we paid directly, but it became too much of a hassle to constantly ensure we made the "mail run" on time - so we switched (we had the option of direct pay or not).

ETA: see if your trustee uses 13DataCenter - then you can sign up for it and track your payments. There is another site that trustee's use but I'm not sure what its called...?

[cspa522]

I don't know if it's an option, but I can certainly look into it. We'll figure something out. We've gotten this far!

[Nicollette]

My case was filed on May 22, 2007, and my first payment was due before June 22, 2007. I had to keep sending in the payments myself until they started coming out of my paycheck.

[TShoot]

I thought most of the Trustees had your wages garnished. My payments are being made by pesonal check to the Trustee's P.O. Box address until my confirmation hearing and then they should be taken directly from my paycheck according to my lawyer.

[jetsfan2010]

I learned it really does depend on the trustee. The first time I filed(with my ex), the trustee we had allowed payment for some in the 341 hearing to be made the day of the hearing, as long as it was certified funds. My attorney informed me from date of filing, your court date can be anywhere from 3-4 weeks from then. You need to make your attorney aware of any issue that may arise in which you cant make that first payment in time.

[kornellred]

I pay my trustee with a money order every month. It appears that most trustees require wage attachment, but no one is keeping records on this matter.