Chapter 13 payment direct to trustee...anyone ever had a check bounce?

[bigcat34]

Just wondering what happened if you were paying direct to trustee and had a check bounce? Do they run it back through, or what? thanks.

[LadyInTheRed]

My trustee only accepts money orders or cashier's checks. But, if I bounced a check to a trustee, I would call the trustee right away and discuss the situation.

[momofthree]

Most trustees don't accept personal checks at all in order to avoid this issue.

[AngelinaCat]

We were an Asset Ch7 and had to buy back our non-exempt stuff from the BK Estate. We had to make monthly payments of $450.00 for 12 months. Our trustee accepted personal checks as well as bank checks and money orders.

So one month very early into the program we mailed off a personal check. We spent several nervous days watching the online part of our CU checking account, to make sure that check had cleared, before the money was gobbled up by something else like the light bill.

After that very nerve-wracking experience, we sent a postal money order, by certified mail, each month thereafter.

[LadyInTheRed]

After that very nerve-wracking experience, we sent a postal money order, by certified mail, each month thereafter.

That really is the smartest way to deal with trustee payments. Except that at least one person reported problems using certified to make Chap 13 payments. There was a delay in the trustee receiving the payment because somebody from the trustee's office has to wait in line at the post office to pick up the certified mail and they don't do that on a daily basis. Not an issue if you allow plenty of time for the payment to arrive. But, it's something to be aware of. I've made 36 payments by regular mail with no problem.

[AngelinaCat]

Nowadays the Post Office automatically puts tracking numbers on anything that is mailed by Priority Mail. With that you can track the progress of your payment. This is also cheaper than the certified-return-receipt method we used. This option wasn't available back in 2008 when we were making these payments.

[DUMBAGAIN]

Yes our trustee only accepts money order's or cashier checks too!

[TooMuchCredit]

I paid directly via my bank's bill pay and had a bounced check. I had a transaction I forgot about clear the day before. They only presented the check it once. I believe it's up to the recipient's (trustee's) bank and their depositor agreement if they 'represent' a bounced check. I've had to pay with a cashier's check ever since. I can do that online, fortunately, but I have to do it manually every month for a $5.00 fee. Money order's might be cheaper, but I'd need 2 or 3 to cover my payment amount and it's less convenient.

[KAKRN97]

I've made all my CH 13 payments by personal check. Not once has it bounced in the last 3 years.

[159515951]

So one month very early into the program we mailed off a personal check. We spent several nervous days watching the online part of our CU checking account, to make sure that check had cleared, before the money was gobbled up by something else like the light bill.

After that very nerve-wracking experience, we sent a postal money order, by certified mail, each month thereafter.

I don't see why this is an issue unless you're floating checks (writing them when the money isn't available to spend) -- is that what you mean?