Delinquent trustee payment

[dma1010]

How bad is it when your chapter 13 account is delinquent?
I made a mistake of mailing it late this month and so now I am 2 days delinquent.
I am not even confirmed yet! My confirmation is on Wednesday.
I sent the payment today (overnight) so trustee will receive it tomorrow.

Will this affect my confirmation on Wednesday (12/08)?

Any help is appreciated,
DMA

[LadyInTheRed]

It might. If you haven't already, call your attorney now and let him know about the late payment.

[dma1010]

I have contacted my atty's office, faxed and left a message.

[LadyInTheRed]

I bet the worse that will happen is it will delay confirmation while the trustee confirms payment. And that may not even happen. You've done everything you can do for now. Try not to worry too much.

[goon]

From what I have heard most trustees maintain an "unspoken" grace period of some kind. I would never trust in that and purposely be late on the payment, but in your case especially if you have been making the payments up to that point, I would think that everything would be ok. If nothing else a copy of the receipt for overnight the payment would be good to have on hand, as it shows good faith to get the payment in ASAP as soon as the issue was noted.

[catleg]

The National Data Center is so slow to process and post payments, they had better have a grace period.

After all it just becomes a big paper chase/waste of time to go after you in court if your payment's a few days late.

That is just my opinion and experience,

[Flamingo]

The National Data Center is so slow to process and post payments, they had better have a grace period.

After all it just becomes a big paper chase/waste of time to go after you in court if your payment's a few days late.

That is just my opinion and experience,

Trustees' payments go to various locations where the receipt there is counted as the actual "receipt" date, not when posted anywhere online. We had to mail in our payments (Cashiers' checks) to a P.O. Box in TN and sometimes when things were tight and we were town to the wire, I would mail via Priority Mail so it would make it there in two days. It is always best NOT to have a late payment during a Chapter 13 since that is checked if one wants to refinance, etc. during a Chapter 13 and if payments are late or not received, a dismissal can result. Since this is the OP's first payment due, there may or may not be an issue but the attorney has to be notified. To the OP - if in the future you feel you cannot make any payments on time, immediately contact your attorney.

[Pandora]

As Flamingo stated - ours is the same - it goes to a PO Box in TN. From there it gets either a notice or sent electronically to the trustee - I'm not sure which - but I know payments do not go directly to the trustee in most instances. Ours takes on average about 10 business days from the time its sent out in the mail -until our Trustee actually shows it on 13DataCenter as received. You need to make sure your budgeting allows for your payment to be sent at least 7-10 days before it's due date if sending by regular mail - and if you overnight it the day before its due, it still wont matter because it still has to be sent through another person/center before getting to your trustee.

I've found the easiest thing was to have our payment directly taken out of hubby's paycheck - that way we know its there, on time, every time - and its "out of sight, out of mind" so to speak.

[CCB35]

if i were you,i would ask to switch to wage garnishment if they offer it.the money for the trustee is taken directly from my check ,this way i never had to worry about being late or it being misplaced.

[catleg]

I think most plans define default as being 30 days late.

Meanwhile my payment sent 12/1 has not posted yet (of course).

I have to wait 60 days before the 11/1 payment that they lost will be refunded by the post office.

The wage order would be easier but I've heard too many stories of the garnishment not stopping on a timely basis.

Probably the best thing to do is get a month ahead on payments then forget about it.

[dma1010]

Thanks for all your replies. I hope and pray this will not delay my tomorrow's confirmation hearing. My trustee also has a PO box I send to and it is supposed to arrive today. I will know tomorrow...it's just the waiting that makes me real nervous. And Atty not calling back means its not a big deal...hopefully.

[catleg]

Also, I think sending payments by anything other than first class mail risks slowing down the process. Anything that has to be signed for probably gets handled slower, hard as that may be to believe (that they can get any slower).

Mine goes to that same PO Box in Memphis also.

[jange]

My July payment was delayed in postings due to the 4th of July long weekend and probably by vacations. When my payment was not posted by the due date I did contact my attorney as I was really concerned since my confirmation was scheduled 10 days later. He told me if I was not current, I would not be confirmed and the confirmation would be delayed again.
Fortunately it did finally get posted with a back date by 4 days.
My payments go to Memphis also. Lately they have been posted pretty quick.

confirmed 7/22/10

[dma1010]

Today is the confirmation hearing. I didn't hear from my attorney. But I didn't see any updates on trustee website. waiting....still...

[LadyInTheRed]

You might want to check Pacer.