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After filing Chapter 13, how long does it take to start paying off my creditors?

Newnan, GA |

I filed ch 13 on April 8, 2011 and I had my hearing in May. When will payments be made to the creditors?

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Attorney answers 5

Posted

Your first payment to the trustee is due 30 days from the date of filing. The trustee controls the distribution of the funds and there are many factors that go into who gets paid and when. None of which are your concern. Your responsibility is to make the payment to the trustee and the rest will work out.

Posted

Creditors receive no payments until the plan is confirmed. You may have had the 341 meeting, but until the plan is confirmed, the creditors do not get paid.

Posted

Creditors receive payment according to their classifications & according to the terms of the plan. Attorney fees & trustee commissions get paid first, then arrearages get paid on any secured property, with priority debt being paid next, then finally, payment to the unsecured creditors. If property is being paid off through the plan, such as for a car, adequate protection payments should be made within 30 days of the trustee receiving the first payment from the debtor.

Sounds complicated? It is!

Hope this perspective helps!

Asker

Posted

Help my employer filed chapter 13 in Idaho can she dismiss my wages? I have 4 NFS payroll checks returned .Basically writing bad checks every week for payroll now - chapter 13 - fraud is a felony- bad checks- can she not pay and is protected by chapt 13?

Posted

The fact you are asking this question is scary. It sounds like you filed pro se without even knowing the basics of a Chapter 13. That could be a disaster. NO payments are made by the Trustee until the month after plan confirmation, which given the date you mention may not even have happened (you have a second hearing for that).

Your plan itself contains the payments schedule for everyone. A properly drafted plan is calculated by most attorneys with a computer program that will help determine who gets paid when, based on who has to be paid. Most pro se plans fail either because the plan payments are inadequate or even worse, they overpay, because they lack the computer programs and expertise to do this right.

If you do have a lawyer, ask him. If not, get one before confirmation. It MAY even save you money and help get your case confirmed.

In answering questions on AVVO, the law office of Glen Ashman is not undertaking to represent you, and you should consider hiring counsel to assist you. In that answers here are based on brief and limited information there may be facts that would affect the accuracy of an answer here, so again, hiring counsel is always prudent. If you are in the area and wish to retain Mr. Ashman, you will need to call for an appointment and sign a retainer agreement.

Posted

The fact you are asking this question is scary. It sounds like you filed pro se without even knowing the basics of a Chapter 13. That could be a disaster. NO payments are made by the Trustee until the month after plan confirmation, which given the date you mention may not even have happened (you have a second hearing for that).

Your plan itself contains the payments schedule for everyone. A properly drafted plan is calculated by most attorneys with a computer program that will help determine who gets paid when, based on who has to be paid. Most pro se plans fail either because the plan payments are inadequate or even worse, they overpay, because they lack the computer programs and expertise to do this right.

If you do have a lawyer, ask him. If not, get one before confirmation. It MAY even save you money and help get your case confirmed.

In answering questions on AVVO, the law office of Glen Ashman is not undertaking to represent you, and you should consider hiring counsel to assist you. In that answers here are based on brief and limited information there may be facts that would affect the accuracy of an answer here, so again, hiring counsel is always prudent. If you are in the area and wish to retain Mr. Ashman, you will need to call for an appointment and sign a retainer agreement.

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