Mortgage payment when we file our petition

[greenthinker]

We will be filing our Ch 13 petition within the next week or so. Our regular mortgage payment plus three past due payments, as well as our truck payment will be included in the plan.

I am under the impression that no payments are made to those creditors in the month that we file, but can't confirm it. Is that the case? I have asked our attorney that question in an email, but haven't received his response yet. I hope that it's true because that would give us a chance to build up a little cushion before we make our first plan payment 30 days after filing.

We live in Washington State, in case that matters.

Thanks!

[lrprn]

Your first Ch 13 payment to the trustee needs to be in his/her hands (not literally - in the office or PO box is what I mean ) within the first 30 days after filing. No exceptions. That's the law.

Given that, after your trustee receives and deposits your first payment, just when the trustee will then start disbursing payment to your secured creditors (house, car) is really up to him/her. Your mortgage and auto lenders have no choice but to wait to be paid when the trustee is ready to send them their slice of the pie.

That's the beauty of Ch 13 - your creditors have no choice but to accept the Ch 13 plan terms and wait for their trustee disbursements (which by the way may not be what you paid every month). Some trustees even skip sending payments occasionally, and there's not a thing your creditors can do about it.

Most trustees will start to disburse payments out to secured creditors once your plan is confirmed and not until then. Ch 13 trustees don't have to worry about late payments and penalties like we debtors do . Your only job in this process is to make your Ch 13 payments on time every month and not worry about the rest.

[lillymarlene]

Your first Ch 13 payment to the trustee needs to be in his/her hands (not literally - in the office or PO box is what I mean ) within the first 30 days after filing. No exceptions. That's the law.

That's so true. Right after I filed I received a letter from my attorney, to bring a bank check to the 341, " 'representing' your first payment..." My 341 was was about 45 days after filing. So, I brought my payment, and may have heard the trustee say at the conclusion of the meeting (I'm slightly deaf) that my plan was recommended for confirmation. And to send my next payment in within the (I thought she said) month. About 6 months passed, and I kept wondering if it was ever going to be confirmed. Finally, I received a report from the trustee, that claimed my account was delinquent. Then, I contacted my attorney and he explained that technically I was a month behind...I sent another payment right away and received my confirmation letter about a week after.

[catleg]

One of the curiousities of chapter 13 is that your first payment is due within 30 days of filing, and your second payment is due the first day of the following month. So your second payment is due before your first!!

Just shows you have to think backwards in a chapter 13. Up is down, good is bad, late is early.

[greenthinker]

One of the curiousities of chapter 13 is that your first payment is due within 30 days of filing, and your second payment is due the first day of the following month. So your second payment is due before your first!!

Is that right?? That is disturbing if that's the case. That means that, depending on what day of the month you file, you could have two plan payments due within just a few days of each other. Seems like that would be a problem for many people...I know it would be for us!

[justbroke]

I can say that is not the case in Florida. Your first payment is due no later than the first of the month after filing! Then it's every month thereafter. Of course, some jurisdictions have the debtor bring the first payment to the 341 Meeting, and others have the debtor have the attorney hold it in escrow until confirmation! Strange, strange, strange.

[greenthinker]

I can say that is not the case in Florida.

Thanks, justbroke. I need to keep in mind that what may be true in one state may not be in another.

[IamOld]

Right because for us, we our FIRST payment was due within 30 days of the FILING date (to the PO Box in Memphis), and then we made teh 2nd payment in another 30 days, and I just asked our paralegal and she said a) first month paid, b) June was paid, c) July (and thereafter) is on time as long as it's received within the month - so July as long as it shows up within July.

[catleg]

There is usually 30 day default language in every plan, so you can always be 30 days late before anyone can do anything to you.
I was just pointing out a weird technicality that as JB said is usually not enforced.

[greenthinker]

There is usually 30 day default language in every plan, so you can always be 30 days late before anyone can do anything to you.
I was just pointing out a weird technicality that as JB said is usually not enforced.

Gotcha, thanks for the clarification.