14 Oct When Is My First Chapter 13 Plan Payment Due?
In a Chapter 13 bankruptcy the debtor proposes a Plan where he makes monthly payments of the arrearages (past due debt) to the Chapter 13 trustee.
Because money is already tight, the question I hear most often from clients is when will the first Chapter 13 Plan payment due?
The general rule is found in the Bankruptcy Code, 11 U.S.C. Sec.1326(a)(1) which states that the first plan payment is due within 30 days of the filing of the bankruptcy petition, unless otherwise ordered by the bankruptcy court.
The “…unless otherwise ordered…” language is important, as Bankruptcy Law Network contributor and California Bankruptcy Attorney Doug Jacobs points out in his article on the timing of Chapter 13 bankruptcy plan payments. Some courts order shorter time periods for making payments and some require all debtors to make payments on the same day.
Since the rule about payment is ultimately up to the court where your bankruptcy is filed, it is best to consult with your attorney about when the Chapter 13 Plan payments are due.
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