The date the first payment is due to the trustee in a Chapter 13 is usually 30 days after the filing date, or 30 days after the Chapter 13 Plan is filed. Some Chapter 13 debtors think they do not have to make a payment until after the meeting of creditors is held. This is not correct, and can lead to a motion by the Trustee to dismiss the case. Not paying the Trustee on time could also lead to a delay in the confirmation of the plan.
In many Chapter 13 cases payments to the Trustee are made by way of a wage order taken directly out of the debtors’ paycheck. Sometimes there is a delay before the wage order gets signed by the judge and served on the employer, and sometimes the employer is slow to begin the payments pursuant to the wage order. The Chapter 13 debtor is still responsible for payments getting to the Trustee on time. Sometimes, in the case of a delay in wage ordered payments, the Debtor needs to make the first payment or two directly to the Trustee.
Some Chapter 13 cases require “adequate protection payments” to be made to secured creditors prior to the confirmation of the plan. In these cases, if payment is not made in a timely manner to the Trustee, the secured creditor can take steps to repossess the security for the debt.
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