Ch 13 Budget Has Been Filed - When Do Payments Start

[DJC]

I posted a thread a few days ago with questions about filing a chapter 13 in Michigan. Our attorney has submitted our budget (it was a denied chapter 7 and converted to a 13). If it is accepted and a new court date set, when does our new budget start? The attorney has told us we should consider ourself on our new budget immediately. I am a little confused on when and why we would mail a proposed payment on a not finalized plan. Thank you.

[LadyInTheRed]

I think you asked your attorney the wrong question. You want to know when your first plan payment is due, not when your new budget starts. You should receive a notice from the trustee telling you where to send your payment. But, don't wait for that. Call your attorney and ask when the first payment is due.

[catleg]

Michigan is a weird state for ch13, unlike most others I don't think the 60 month clock starts with filing.
A quick look at some web sites makes me think that the 36/60 months is measured from the date of the Order Confirming Plan.

[DJC]

Thank you.The reason I am asking, we need to put a roof on the house (insurance requirement) and need to account for our spending. We are trying to guess when the first payments will need to be sent in. Sounds like our attorney should be answering this question.

[dmc-2008]

I had to fork over first payment in 30 days. Ouch!

[catleg]

I had to fork over first payment in 30 days. Ouch!

Yes this is normal in most districts. Michigan is weird in this respect. I know it's been discussed here, but I can't remember how it works exactly.

[LadyInTheRed]

Yes this is normal in most districts. Michigan is weird in this respect. I know it's been discussed here, but I can't remember how it works exactly.

I believe the first payment is still due within 30 days. In Michigan, the debtor ends up making more than 60 payments. If a 60 month plan is confirmed after the debtor has made 3 payments, the debtor will make a total of 63 payments. If after 6 payments, the debtor will make a total of 66 payments. It seems quite unfair and contrary to the language of the bk code that limits a plan to 60 months. I'm suprised this hasn't been challenged.

Since the OP is converting, I suspect the first payment is due 30 days after the filing of the plan, but I am not certain. Definitely a question to ask your attorney, regardless of what strangers on the internet tell you.

[May2014]

In Missouri, it is within the first 30 days of filing. We also converted from a 7 to a 13 just DAYS within the payment being due. It caused us to make 2 Trustee payments in July (one was due June 27 so we had to "borrow from July check #1) and the other was due July 27 (July check #2). That was the hardest month for us!