Section 2: Managing Your Chapter 13 Payments
Navigate your financial obligations during a Chapter 7 bankruptcy with our guidance. We help you manage your payments, understand payroll deductions, and more. We’re here to ensure the success of your bankruptcy case.
How can I view and check my Chapter 13 payment history?
Keeping track of your payments is essential in a Chapter 13 bankruptcy case. You want to make sure you’re sticking to your repayment plan. But how do you do that? Well, you can check your payment history online! There’s a website called the National Data Center (NDC) to check out all your payment details. It’s free to use, and it’s updated regularly.
You’ll need to create an account on the NDC website to get started. Once done, you can log in anytime to see your payment history and other case information. It’s a good idea to check it regularly to ensure everything goes smoothly.
But remember, the info on the NDC site is just a general overview. You should contact us directly if you have questions or if something needs to be corrected. We’re here to help you through this process. To monitor your case, visit the following website and create a member login: National Data Center.
Remember, this is a general overview; the specifics can vary based on your circumstances and local laws. Always consult with your bankruptcy attorney for personalized advice. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney.
What is the difference between being paid weekly, bi-weekly, and semi-monthly, and how are the Chapter 13 plan payment payroll deductions calculated?
Regarding how often you get paid, there are three standard options: weekly, bi-weekly, and semi-monthly. Here’s what each of them means:
- Weekly: If you’re paid weekly, you’ll receive your paycheck every week. This usually means you’ll get paid 52 times in a year.
- Bi-weekly: You’ll receive your paycheck every two weeks if paid bi-weekly. This usually means you’ll get paid 26 times a year.
- Semi-monthly: If you’re paid semi-monthly, you’ll receive your paycheck twice a month, typically on set dates such as the 1st and 15th. This usually means you’ll get paid 24 times a year.
How to Calculate Payroll Deducted Chapter 13 Plan Payments: Assume your monthly Chapter 13 plan payment is $500.00. Here are the correct calculations:
Weekly: If you’re paid weekly, are 52 weeks in a year. So, you would multiply your monthly payment by 12 to get the total annual payment and then divide it by 52. In this case, ($500 x 12) / 52 equals approximately $115.38. Therefore, around $115.38 would be deducted from your weekly paychecks for your Chapter 13 plan payment.
Bi-weekly: There are 26 pay periods per year if paid bi-weekly. So, you would multiply your monthly payment by 12 to get the total annual payment and then divide by 26. In this case, ($500 x 12) / 26 equals approximately $230.77. Therefore, around $230.77 would be deducted from your bi-weekly paychecks for your Chapter 13 plan payment.
Semi-monthly: If you’re paid semi-monthly, there are precisely 24 pay periods in a year. So, you would multiply your monthly payment by 12 to get the total annual payment and then divide by 24. In this case, ($500 x 12) / 24 equals $250.00. Therefore, $250.00 would be deducted from your semi-monthly paychecks for your Chapter 13 plan payment.
Remember, this is a general guide. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.
What is the process for my employer to start the payroll deductions from my pay?
This process is not the same in all Courts; however, once you’ve filed for Chapter 13 bankruptcy, your attorney may provide an order to the Court, and once signed by the Court, it will be sent to your employer to start payroll deductions. In other Courts, the Chapter 13 Trustee will submit this information to your employer. Here’s a simple breakdown of the process:
- Court or Trustee Order: Once your repayment plan is filed or approved, the bankruptcy court or the Trustee will send your employer documents instructing them to deduct a specified monthly amount from your paycheck. This amount is what you’ve agreed to repay your creditors each month.
- Employer Action: Your employer will receive the information and set up the payroll deduction. This means they’ll take out the specified amount from your paycheck before you receive it. This Money is sent directly to your Chapter 13 trustee.
- Trustee’s Role: The trustee receives the deducted amount from your employer and then distributes it to your creditors according to the repayment plan.
- Ongoing Monitoring: You can check your repayment plan’s payment history and progress through the National Data Center or by contacting your attorney or trustee.
Important Note: Your payroll department will notify the Trustee of your Chapter 13 Bankruptcy payments. A part of your monthly payment will eventually be deducted from every paycheck and sent to the Trustee. Your employer may take a few pay periods to deduct your plan payments. You are responsible for monitoring your paychecks to ensure the money is being deducted. If you receive a paycheck and the money is not being deducted from your paychecks, you must make the payments on your own, either by bank draft or by mailing money orders.
Remember, this process can vary slightly depending on your specific circumstances and local laws. Always consult with your bankruptcy attorney for personalized advice.
Please note this is a general guide. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.
What happens if my employer does not deduct enough from my wages to make monthly Chapter 13 plan payments?
In a Chapter 13 bankruptcy case, your monthly plan payments are typically deducted from your wages by your employer and sent to the bankruptcy trustee. This process, known as an employer wage deduction, ensures prompt and consistent payments toward your Chapter 13 plan. However, what happens if your employer does not deduct enough from your wages to make your full monthly plan payments?
First, you must understand that your obligation to make full monthly payments remains, even if your employer does not withhold the correct amount. The responsibility ultimately lies with you, the debtor, to make the correct payments. You should immediately act if your employer is not deducting enough from your wages.
Next, contact your bankruptcy attorney and inform them about the situation. They can guide you on the next steps and may contact your employer to rectify the issue. It’s also a good idea to keep copies of your paycheck stubs as proof of the deductions made.
If the issue persists and your employer continues to deduct less than the required amount, you may need to make the difference by directly paying the trustee. This ensures that your Chapter 13 plan payments stay up to date, preventing potential complications with your bankruptcy case.
Important Note: It is your responsibility to monitor your paychecks to be sure the money is being deducted. If you receive a paycheck and the money is not being deducted from your paychecks, you must make the payments on your own, either by bank draft or by mailing money orders.
Remember, this process can vary slightly depending on your specific circumstances and local laws. Always consult with your bankruptcy attorney for personalized advice.
Please note this is a general guide. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.
How can I make Chapter 13 payments by mail?
Money orders and certified checks are accepted by mail for Chapter 13 payments. It’s essential to ensure that these payments are made on time and in the correct amount to avoid any complications with your bankruptcy plan. Make sure the only forms of payment you send are money orders or certified checks. Also, you must include your case number on any payment you mail to the Chapter 13 Trustee.
Here are the Chapter 13 Trustee’s payment addresses for each of the divisions in the Western District of Louisiana:
Shreveport Division:
Daryl J. Smith
Chapter 13 Trustee
PO Box 2218
Memphis, TN 38101-2218
Monroe Division:
Eugene Hastings
Chapter 13 Trustee
PO Box 270
Memphis, TN 38101-0270
Alexandria:
Jon C. Thornburg
Chapter 13 Trustee
PO Box 279
Memphis, TN 38101-0279
Lafayette and Lake Charles Division:
Keith A. Rodriguez
Chapter 13 Trustee
PO Box 1699
Lafayette, LA 70502-3445
Here’s how you can make your Chapter 13 payments by mail:
Prepare your payment: Money orders or certified checks are both acceptable forms of payment. Personal checks and cash are typically not accepted. Ensure that your payment is correct as outlined in your Chapter 13 plan.
Include Necessary Information: Include your case number and your name on your payment. This ensures that your payment is correctly applied to your case.
Send Your Payment: Send your payment by mail to your bankruptcy trustee’s address. This address should have been provided at the beginning of your case. Contact your trustee’s office to confirm the correct address if you need more clarification.
Send Early: It’s essential to send your payment early to ensure it arrives on time. Payments are typically due at the beginning of the month, so consider sending your payment a week or two in advance.
Keep Records: Keep a record of each payment you send, including a copy of the money order or certified check and the receipt from the post office. This can supply proof of payment if there’s ever a dispute.
Remember, this is a general overview; the specifics can vary based on your circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or e-mail your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.
How can I make Chapter 13 payments online?
Making Chapter 13 payments online by bank draft can be convenient to ensure your payments are made on time.
Here are the websites each of the Chapter 13 Trustees in the Western District of Louisiana uses for online Chapter 13 Trustee payments by bank draft. You can click on the link, create your account, and enter and confirm your case and bank account information; once verified, you can make Chapter 13 payments online.
Shreveport Division: Daryl J. Smith
Payment Website: Visit TFS Bill Pay to Make Chapter 13 Payments to Daryl J. Smith, Chapter 13 Trustee for Shreveport
Monroe Division: E. Eugene Hastings
Payment Website: Visit TFS Bill Pay to Make Chapter 13 Payments to E. Eugene Hastings, Chapter 13 Trustee for Monroe
Alexandria Division: Jon C. Thornburg
Payment Website: Visit ePay to Make Chapter 13 Payments to Jon C. Thornburg, Chapter 13 Trustee for Monroe
Lafayette and Lake Charles Division: Keith A. Rodriguez
Payment Website: Visit TFS Bill Pay to Make Chapter 13 Payments to Keith A. Rodriguez, Chapter 13 Trustee for Monroe
Here’s a general guide on how you might do it:
- Find the Trustee’s Payment Website: Each bankruptcy court has a trustee assigned to oversee Chapter 13 cases. Many trustees have websites or use third-party websites where you can make your payments. You should have received information about your trustee and how to contact them when your bankruptcy case started.
- Create an Account: If your trustee allows online payments, there will usually be a place on their website where you can create an account. You’ll need your case number and other personal information to set this up.
- Set Up Payment Information: Once your account is created, you can enter your bank account information. This is the account that the payments will be drawn from.
- Schedule Payments: After your account is set up, you can schedule your payments. You can set up recurring payments, so you don’t have to remember to make the payment each month.
- Confirm and Track Payments: Confirm that your payments are set up correctly after scheduling them. Most sites will send you a confirmation email. Keep track of your payments and check your account regularly to ensure everything goes smoothly.
Remember, this is a general guide. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.
What are the specific payment instructions for the Chapter 13 Trustees in Shreveport, Monroe, Alexandria, Lafayette, and Lake Charles?
Many people are becoming more familiar with making payments online, which is becoming the most popular way to make Chapter 13 plan payments. However, making payments by mail to make Chapter 13 payments is still a method. No matter which method you choose, you must ensure that these payments are made on time and in the correct amount to avoid any complications with your bankruptcy plan. If you are paying by mail, make sure the only forms of payment you send are money orders or certified checks. Also, you must include your case number on any payment you mail to the Chapter 13 Trustee.
Here are the Chapter 13 Trustee’s payment addresses and online payment websites for each of the divisions in the Western District of Louisiana:
Shreveport Division:
Daryl J. Smith
Chapter 13 Trustee
PO Box 2218
Memphis, TN 38101-2218
Trustee’s Online Payment Website
Monroe Division:
Eugene Hastings
Chapter 13 Trustee
PO Box 270
Memphis, TN 38101-0270
Trustee’s Online Payment Website
Alexandria:
Jon C. Thornburg
Chapter 13 Trustee
PO Box 279
Memphis, TN 38101-0279
Trustee’s Online Payment Website
Lafayette and Lake Charles Division:
Keith A. Rodriguez
Chapter 13 Trustee
PO Box 1699
Lafayette, LA 70502-3445
Trustee’s Online Payment Website
Remember, this is a general guide. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.
What happens if I miss a Chapter 13 payment or fall behind on my Chapter 13 payments? What should I do?
If you miss a Chapter 13 payment or fall behind, it’s important not to panic. Remember, Chapter 13 bankruptcy is a repayment plan, and sometimes life happens, and you might miss a payment. Here’s what you should do:
- Contact your attorney or paralegal: As soon as you realize you still need to pay or catch up, contact your attorney or paralegal. They can supply advice tailored to your specific situation.
- Catch up if you can: If your financial situation allows, try to catch up on your missed payments as soon as possible. This can help prevent further complications.
- Discuss modifications: If you cannot catch up on your payments due to a change in your financial situation, your attorney can discuss changing your Chapter 13 plan to accommodate your new circumstances.
- Stay in communication: Tell your attorney about your situation. This can help prevent your case from being dismissed due to non-payment.
Remember, this is a general guide. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.
Can I amend my Chapter 13 payment plan?
In a Chapter 13 bankruptcy, you agree to a payment plan that lasts for three to five years. But life happens, and your financial situation can change during that time. If you find that you can’t keep up with your payments, or if your income increases and you can pay more, you might wonder if you can change your Chapter 13 payment plan.
Yes, you can change your Chapter 13 payment plan, but it’s a complex process. You can’t just decide to pay less or more each month. Instead, you’ll need to go through a plan modification process.
Here’s how it works:
- Have you had a Change in Circumstances: First, has a change in financial circumstance caused your income to decrease, and you need help paying your current payments? Or, your income has increased, and you can afford to pay more.
- Talk to Your Attorney: Next, you’ll need to discuss the change with your bankruptcy attorney. They can help you understand your options and what steps you need to take.
- Prepare a Modified Plan: If you and your attorney decide to continue, you must prepare a modified plan to change your current plan. This document explains the reasons for the modification and the modified plan terms.
- File the Modified Plan with the Court: Once the plan is prepared, your attorney will file it with the bankruptcy court and serve it on all parties in your case. The Court will review the modified plan and decide whether to approve the change.
- Court Hearing: In most cases, you will not need to attend the hearing, where the judge will decide whether to approve your motion. If your attendance is needed, your attorney will let you know.
Remember, this is a general guide. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.
Can I change my Chapter 13 plan?
Yes, changing your Chapter 13 plan is possible after the Court has confirmed it. This is known as a Chapter 13 plan modification. You should do this if your financial situation changes, for example, if your income decreases or your expenses increase. To change your plan, you must file a motion with the bankruptcy court and propose a new plan. Your creditors will be able to object to your proposed changes, and the Court will decide whether to approve the new plan. It’s important to note that you should continue making your plan payments while waiting for the Court to decide on your motion. Discussing a plan modification with your bankruptcy attorney to understand all the implications is a clever idea if you’re considering a plan modification.
Remember, this is a general guide. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.
How many payments do I have left in my Chapter 13 bankruptcy case?
To decide the number of payments left in your Chapter 13 bankruptcy case, refer to your original payment plan that the Court approved. This plan outlines the total number of payments and your plan’s duration, typically between three to five years.
However, the correct way to know how many payments you have left is to check your payment history. You can do this by logging into the online portal provided by your Chapter 13 Trustee. This portal will show you the payments you’ve made and the balance remaining. If you need help accessing this, contact your attorney or paralegal for help.
You can check your payment history online! There’s a website called the National Data Center (NDC) to check out all your payment details. It’s free to use, and it’s updated regularly. To monitor your case, visit the following website and create a member login: National Data Center.
You’ll need to create an account on the NDC website to get started. Once done, you can log in anytime to see your payment history and other case information. It’s a good idea to check it regularly to ensure everything goes smoothly.
Remember, this is a general guide. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.
How long do I have left in my Chapter 13 bankruptcy case?
The duration of a Chapter 13 bankruptcy case can vary depending on several factors. Typically, a Chapter 13 bankruptcy plan lasts between three to five years. The exact length of your case will depend on your income, expenses, and the specifics of your repayment plan.
If you want to know exactly how long you have left in your Chapter 13 bankruptcy case, you can check your repayment plan or contact your bankruptcy attorney or trustee. They will have the most correct and up-to-date information about your case.
You can check your payment history online! There’s a website called the National Data Center (NDC) to check out all your payment details. It’s free to use, and it’s updated regularly. To monitor your case, visit the following website and create a member login: National Data Center.
You’ll need to create an account on the NDC website to get started. Once done, you can log in anytime to see your payment history and other case information. It’s a good idea to check it regularly to ensure everything goes smoothly.
Remember, this is a general guide. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.
Can I pay off my Chapter 13 case early?
In a Chapter 13 bankruptcy case, you’re typically on a repayment plan that lasts 3 to 5 years. If you can pay off your plan early, you might wonder if that’s possible. The answer is that it depends.
If your Chapter 13 plan is a “100% plan” – meaning you’re repaying all your debts in total –you can generally pay off your plan early. You’ll need to cover any required payments, like trustee fees.
However, if your plan only pays a part of your debts, paying off your plan early can be more complicated. This is because Chapter 13 plans are designed to give your creditors at least as much as they would have received if you had filed a Chapter 7 bankruptcy. If you start paying off your plan early, the bankruptcy court might see your extra Money as disposable income that should be going to your creditors, and they could require you to change your plan to pay more.
In either case, it’s essential to consult with your bankruptcy attorney if you’re considering paying off your Chapter 13 plan early. They can guide you through the process and help you understand the potential implications for your specific situation.
Remember, this is a general guide. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.
When will the payroll deductions from my wages stop in my Chapter 13 case?
In a Chapter 13 bankruptcy case, payroll deductions are commonly used to make plan payments. These deductions are usually set up at the beginning of your case and continue until you’ve completed all payments under your Chapter 13 plan.
Keeping track of your payments is essential. If you believe all payments have been made but deductions are still occurring, contact your attorney as soon as possible. They can verify the status of your payments and take the necessary steps to stop the deductions if all payments have been made.
When you’re nearing the end of your Chapter 13 plan, you might wonder when these payroll deductions will stop. The deductions should cease once you’ve made all your Chapter 13 plan payments. This typically happens after three to five years, depending on the length of your repayment plan. Once you have made all the plan payments, the Trustee will mail a letter to your employer letting them know how to stop the payroll deductions.
Remember, this is a general guide. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.
