How To Make Chapter 13 Plan Payments
If you’re in a Chapter 13 Bankruptcy Plan, making plan payments is very important. These payments are meant to pay your creditors pursuant to your plan and can include mortgage payments, car payments, tax payments and payments to other creditors, such as credit cards.
In the Western District of Michigan, your Chapter 13 Trustees have several options to make plan payments, please look for your Trustee name below to review payment options:
Trustee Barbara Foley Accepts:
Wage orders directly from your paycheck
ACH deductions directly from your bank account
Mailed payments to :
Chapter 13 Trustee, Barbara P. Foley
P.O. Box 1818
How Chapter 13 Bankruptcy Cases Are Administered
After filing a Chapter 13 case, a debtor must file a Chapter 13 plan. The plan, sometimes called a wage earner plan, must propose to pay all of the debtor’s disposable income into the plan for a period of 36 or 60 months the payment period is based upon a calculation of gross income for the six months prior to filing. Debtors whose average income during that period is below the median for their household size in their state may propose a 36-month plan debtors who have above the median income cannot have a plan for less than 60 months unless they propose to pay everyone in full.
Chapter 13 cases are administered by a Chapter 13 trustee, who collects all the payments made under the plan and uses the money to pay creditors. The trustee reviews every case to make sure the debtors are following the law. Payments typically begin as soon as the plan is filed, even if it isn’t approved yet.
The Chapter 13 plan must comply with the U.S. Bankruptcy Code. It must be sent out to all creditors, who will have a chance to object to the plan. The Chapter 13 trustee may also object to the plan. If all objections are resolved or if the court overrules them, the plan will be confirmed, which means it is approved.
Importance Of Good Chapter 13 Payment History
If debtors fail to make their plan payments, the court can dismiss the bankruptcy case, regardless of how cooperative they are otherwise. If the case is dismissed, the bankruptcy protections are lost, there is no discharge of debts and debtors are back where they started. Chapter 13 trustees have sophisticated systems for tracking and applying payments, but mistakes can happen.
Even debtors who make every payment faithfully may need to check the trustee’s records from time to time. Debtors who are unsure as to whether their payments are current or whether the trustee is receiving and applying the payments correctly have several options for finding out.
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How To Make Your Bankruptcy Payment Online
Canb Online Payment Form
About this form
Do not use this form for your Chapter 13 plan payments to the trustee or the Chapter 11 quarterly fees to the trustee. Use this form to pay filing fees and make installment payments for Chapter 7, 11, and 13 filing fees for the U.S. Bankruptcy Court, Northern District of California. You can also use this form to pay other fees such as searches, copies, exemplifications, and certifications. Please call the Clerk’s Office at 821-7606 to verify the fee amount.
Accepted Payment Methods:
With an account you can:
- See the payments you made since you created an account.
- Store payment information so you don’t have to re-enter it.
- Copy a form you already submitted the next time you need to make a payment.
To take advantage of these benefits, you can or Create an Account . To continue as a guest user, click the ‘Continue to the Form’ button.
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Updating Your Contact Information
You should keep us informed of any change in your e-mail or physical mailing address. You may do so by mailing a written notice of the change to us at Any update to your contact information sent to this e-mail address, will affect only your on-line payment information.
Any address change or contact information related to your bankruptcy case and/or for the purpose of receiving communication from the U. S. Bankruptcy Court, your bankruptcy attorney or your Chapter 13 Bankruptcy Trustee, must be filed with the U. S. Bankruptcy Court on the appropriate Address Change Form. It is recommended that you contact your bankruptcy attorney.
Consent For Electronic Signatures And Records
In order to receive delivery of invoices and make payments through this website, you must consent to the use of electronic signatures and electronic records for those invoices and payments and for all agreements, disclosures, notices and other communications relating to those invoices and payments . Once you have given your consent, we may deliver or make any of the Records available to you by posting them to the relevant page of your account on this website or sending them to your e-mail address as then reflected in our records. Records posted to your account will be electronically accessible for at least 24 months unless your consent is withdrawn as specified in the Withdrawing Your Consent section below or your access to the system is revoked due to insufficient funds or a stop payment. If your consent is withdrawn or your access to the system is revoked, you may obtain information regarding records posted to your account by emailing us at You may review, print or download those Records by logging into your account and accessing the relevant page. The following material is intended to provide you with important information you should consider before giving your consent.
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Let Us Walk You Through These Options:
In order to modify your chapter 13 bankruptcy payment plan, you will be required to submit documentation to the bankruptcy court that shows your circumstances together with the reasons why you can no longer afford to settle your monthly debt payments according to your approved reorganization plan. The modification may be granted if you are able to present proof of your financial problems resulting in an undue hardship.
To temporarily stop bankruptcy payments, your bankruptcy attorney must file a request with the bankruptcy court presenting proof of your financial distress and the reasons why you will be temporarily unable to pay your dues. Be aware that this is a short-term solution in the bankruptcy process and you may be required to increase your monthly installments in order to make up for the missed payments in your debt settlement plan.
If you are considering converting from Chapter 13 bankruptcy to Chapter 7, it is highly recommended that you seek legal advice from an experienced Arizona bankruptcy lawyer. Our Phoenix Fresh Start bankruptcy lawyers will make sure that your transition to a Chapter 7 bankruptcy goes without a hitch.
Ways To Make Chapter 13 Trustee Payments
- The payments listed below were verified on by reviewing the information on the websites of each Trustee listed on this page, follow up calls to the office of each Trustee, and a phone call with a representative at Renasant bank.
- If you have a Chapter 13 case pending in the Northern District of Alabama, Southern Division and Bradford W. Caraway is your trustee, you have six different ways you can make payments to the Trustee and you can even make your payments online.
- If you have a case pending in the Northern District of Alabama, Western Division and C. David Cottingham is your trustee, I have listed instructions on the second half of this page on how you can make your payments to the Trustee. You can now make your payments online.
Modify Your Chapter 13 Plan Payments
If it isn’t possible to resolve your financial emergency , then you might be able to reduce your payments by asking the court to modify the amounts paid through your repayment plan.
In your motion, you’ll need to propose a new payment amount and provide the court with documentation showing your changed circumstances. However, keep in mind that if your plan pays only debts that you must repay fullysuch as domestic support arrearages and certain tax debtyou won’t be able to reduce your payment amount. In that case, a modification won’t be possible.
Graduate Or Leave Full
You have six months after you graduate or leave full-time studies before you need to start repaying your OSAP loan. This is your six-month grace period.
You will be charged interest on the Ontario portion of your loan during your six-month grace period. This interest will be added to your loan principal .
You make loan payments to the National Student Loans Service Centre, not to OSAP.
Your payments are based on a 9½ year pay-back schedule. This pay-back schedule is the average amount of time it takes to pay back an OSAP loan.
Repaying student loans is an excellent way to establish and improve your credit score. You can make additional payments on your loan at any time if you want to repay it faster.
Get repayment assistance:
If you’re having trouble repaying your loan, you might be able to get repayment assistance.
If you have a severe permanent disability and you can’t attend work or school, you can apply for the Severe Permanent Disability Benefit. Contact the National Student Loans Service Centre.
Extend your repayment period:
You can lower your monthly payments by extending your repayment period from 9½up to 14½ years. Log in to your National Student Loans Service Centre account.
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Using The National Data Center
If a trustee doesn’t have a specific online portal, the payment history for most Chapter 13 cases nationwide can be reviewed at the National Data Center’s website. Debtors and their attorneys may use the service for free creditors and their attorneys can use it on a paid subscription basis. Over 200 trustees report their information to the NDC.
Benefits Of A Chapter 13 Bankruptcy Case
Every bankruptcy case creates an automatic stay against collection activity. Once the case is filed, most creditors cannot take any action to collect their debts unless the court orders otherwise. This means they cannot file lawsuits, repossess collateral or sell houses at a foreclosure sale. So, if a foreclosure sale is scheduled, a bankruptcy filed the day before will stop the sale.
The Chapter 13 payment plan can help debtors to stop a foreclosure and catch up on their house payments or to stop the repossession of a vehicle and pay for the car over time. In some cases, a Chapter 13 can even help reduce the amount owed on a vehicle or strip off second or third mortgages. Certain types of creditors, like credit cards and medical bills, might receive pennies on the dollar, if anything. If the debtors make all their payments and complete their case successfully, at the end of the 36- or 60-month period, the court will enter a discharge order.
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Dealing With Your Trustee
Every bankruptcy trustee determines how they wish to receive the documents from the bankruptcy filers whose cases they oversee. While local bankruptcy bar associations have made some inroads in the past to move this process away from mailing hard copies, many bankruptcy trustees still require just that.
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How Do I Make Chapter 13 Bankruptcy Trustee Payments
A Chapter 13 bankruptcy proceeding differs from a Chapter 7 bankruptcy in that, instead of discharging your debt entirely, the process requires that you pay something back to your creditors, depending upon your monthly average income after necessary expenses, as well as a variety of other factors.
This post will not explain how Chapter 13 bankruptcies in Detroit, Michigan work in full detail. What is important to note is the pay something back portion of the above description. In Chapter 13, you make payments both monthly as a matter of course and on other occasions throughout the process.
As to the monthly payments, each month, starting from the first month after filing your case, you make a set payment toward your debt.
Chapter 13 Bankruptcy allows you to restructure your debt and pay your unsecured creditors a portion of the debt you owe with any remaining balance discharged or wiped out at the end of your plan.
You do not pay your creditors directly .
The person you pay is called the Chapter 13 Trustee.
The Chapter 13 Trustee is an individual chartered by the US Trustees Office to administer your Chapter 13 case.
The Trustees job is to collect your monthly required Chapter 13 Plan Payment and disburse it to your creditors in a priority ordered specified by the US Bankruptcy Code.
Do You Pay Your Mortgage Or Car Payment Directly To The Trustee
Some bankruptcy districts allow you to combine your mortgage and car payments into your Chapter 13 payment plan. This option leaves you with one large consolidated payment to make. If youve gone this route and you miss a payment, you simultaneously miss a mortgage and/or car payments.
In this instance, the trustee may file a motion to dismiss your Chapter 13 case and remove you from bankruptcy protection. Youll have to oppose the trustees motion and catch up on the delinquent payment before creditors start to contact you.
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Dismiss Your Case And Refile
If none of the options above allow you to meet your goals, you can always let the court dismiss your case and refile another Chapter 13 bankruptcy. This might be your best option if you can’t afford your Chapter 13 plan payment right now and a Chapter 7 bankruptcy doesn’t make sense.
Once your financial situation improves, you can file another Chapter 13 to pay your debts. But keep in mind that the automatic stay isn’t always put in place when you file successive bankruptcy cases. Depending on when you file, you might have to ask the court to extend the automatic stay in your matter.
Payment Timing And Disbursement
All payments are placed on a 15 business day hold by the Trustee to guarantee validity of funds. Funds are subject to disbursement in the next disbursement cycle following expiration of the 15 business day hold.
If your case is dismissed, completed or converted following any payment received by the trustee using this ePay system, no such funds will be refunded to you until at least sixty calendar days have passed since the payment receipt.
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