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14 Dec In a Chapter 13 Bankruptcy, Pay Early and Pay Often

The Bankruptcy Code requires Chapter 13 debtors to make their first plan payment within 30 days of filing their case, but they should make their first payment as early as possible. If you file Chapter 13, you are required to make your first payment within 3o days of filing your case. But pay it as quickly as possible right after you file your case. Chapter 13 trustees use a lock box system in which payments are mailed to far away locations. For example, our Charleston division trustee's lock box is in Memphis, Tennessee. After the check gets to the lock box, it must be entered into the trustee's computer system. All this takes time. I tell my clients that making timely payments in their cases makes up for a multitude of sins. What I mean by this is that if payments are being made as required, many other issues with their cases can be fixed. You can't fix a case where the client isn't paying, though. It's especially important to make that first payment early. There's not much worse for a bankruptcy
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