When Is My Chapter 13 Payment Due?
By Douglas Jacobs, California Bankruptcy Attorney on May 25, 2008 in General Bankruptcy Information
Soon after you file a Chapter 13 bankruptcy petition, you will need to make payments to the assigned trustee in order to fulfill your obligation under the plan. Payments often start even before a plan is confirmed.
So, when do you have to make the first one? My colleague, Däna Wilkinson, is writing an excellent series on the Mechanics of a Chapter 13 Plan. In part 2, she indicates that in South Carolina, where she practices, the first plan payment is due thirty days after the filing of the Chapter 13 petition. That’s not true everywhere.
In the Eastern District of California, where I practice, the plan payment is due on the 25th day of the month after the petition is filed. Thus, if you file on May 31, your first payment will be due on June 25th. But, if you wait a day, and file on June 1, your first payment won’t be due until July 25th! Although you will ultimately have to make the same number of payments, that extra month can be a huge relief from creditors and bills!
Each subsequent payment is due on the 25th of the month, also.
Your district may be the same as Däna’s or mine. It’s always best to check with competent counsel in your area.
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