What Does Pay Outside the Plan Mean?

02 Nov What Does Pay Outside the Plan Mean?

Making a payment outside of the plan is a term used in a Chapter 13 bankruptcy.

A Chapter 13 bankruptcy requires the debtor to propose a “plan” of how he will be able to pay the debt that he has that is overdue or in arrears.

Payments made on the arrears are payments said to be made “through the plan.”

Payments paid through the plan are payments made usually on a monthly basis to the trustee and then distributed by the trustee to debtor’s creditors.

Also, as part of a Chapter 13 plan the debtor will need to make sure that his debts will remain current. Those payments are referred to as payments being made outside of the plan, because the payments are made directly to the creditor, not through the trustee.

Whether a payment is made through the plan or outside of the plan can depend on many factors and it is best to speak with an experienced consumer bankruptcy attorney to determine the best option for you.

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I've been a consumer bankruptcy lawyer for nearly 25 years. Since that time I have helped many people resolve their financial problems. I have been practicing law since 1986 and I am licensed to practice in all state and federal courts in the State of Louisiana. Because I am a sole practitioner, you know that your debt matters are being handled by me personally. In addition to my work with consumers, I am also frequently asked to speak at local seminars on bankruptcy law. I am member of the following organizations: • Louisiana Bar Association • National Association of Consumer Bankruptcy Attorneys • Bankruptcy Law Network My office is located at: 3920 General DeGaulle Drive, New Orleans, LA 70114 Telephone: (504) 368-4101

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