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Chapter 13 And Default On Payments
A very significant prerequisite of Chapter 13 is that you make payments on the plan, and at times to other creditors. The Trustee is accountable to your creditors for gathering and dealing with your plan payments. |
The Trustee's advice is due 90 days after the meeting under 341 which you must attend. If you have not made payments during that time, the Trustee may discharge your case without giving notice to you.
The failure to make any plan payments implies a lack of good faith in filing the plan, or conditions which are not reliable with qualifying for Chapter 13.
The Trustee will scarcely indicate any payments being missed out. If your plan payments are not in progress within 30 days from the date of the proposal, the Trustee will issue an order sacking your case without any giving any prior notice.
Defaults so early in plan payments may be intricate to handle. If there is a rational, certifiable source for the non-payment, it may be probable to ask for an extension of the deadline or file an action for a suspension in plan payments and an Amended Plan.
Once the plan is put into place and after the Trustee's recommendation and an order mentioning that the plan has been signed by the court, your plan payments are under a lesser amount of immediate scrutiny.
If you do not succeed to detect plan payments, make them up as soon as you can irrespective of whether you have received the Trustee's letter or not. If you cannot make up the payments, you may have to adjust your plan to defer the missed payments.
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Chapter 13 And Default On Payments
Under the Bankruptcy law, you are required to judiciously and regularly file all the documents required by the bankruptcy act. You may also need to evaluate the attached filing attachments and make certain that you have filed all the documents required. 
