Making Payments Under Your Plan.

After the filing date, the Court will issue an Order Establishing Deadline for Making Payments. You must begin making Plan payments on the date set by the Order. Your name and case number must be written on all payments to the trustee to ensure accurate posting to your account and receipt of payment. Many people prefer to have their payments made through wage deductions at their place of employment. Your employer simply deducts your payment from your paycheck and sends it directly to the trustee. This procedure makes it easier for you to stay current under your Plan and eliminates cost of postage. Payment should be made by cashier’s check or money order. The Trustee will not accept personal checks. Even if the Court orders your employer to deduct Plan payments and send them to the Trustee for you, are ultimately responsible for making sure all payments are made. If your employer fails to make a Plan payment deduction, you must tell your bankruptcy attorney and immediately send the payment to the Trustee by cashier’s check or money order. If you fail to make any Plan payment to the Trustee on time, the Trustee will file an affidavit of default and serve it upon you. Thereafter, you will have 21 days to make the overdue payment plus the next payment due under your Plan. Therefore, being late will cause you to make a total of two payments within the 21-day grace period in order to save your Chapter 13 bankruptcy.

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