Missing a Payment To Your Trustee Could Mean No Discharge in Chapter 13 Chicago

23-May-2011 Chapter 13 bankruptcy in Chicago is a privilege that you have to prove you are deserving of. This is because when the chapter 13 Chicago process is complete you will have kept all of your assets and been discharged of all remaining debts.

Your Chicago bankruptcy lawyers will work with you during the chapter 13 process however one thing they cannot do for you is make sure that your payments are sent to your chapter 13 trustee on time. That is up to you.

Making payments on time is a very serious requirement of chapter 13 Chicago. If your bankruptcy case is presented to a judge and they see that you've missed even one of your payments your case will be dismissed. Your trustee will hold you under scrutiny for the first few months of your payments. This is your opportunity to prove that you are trustworthy and deserving of a chapter 13 discharge. If you miss payments during the payment plan the trustee can, (and will) contact the judge and ask for your case to be dismissed.

It is important to note that your bankruptcy trustee probably will not accept personal checks from you. That means that in advance of the payment due date you will need to secure a cashiers check or money order. Save the receipt from this.

If you are sending a check make sure to document your court case number and full name on the front of the check. Everything you can do to make the chapter 13 trustees' job easier will help avoid your check getting lost in the shuffle. Make sure to pay attention to where the check needs to be sent. If you are in a hurry it is important to know that a P.O. box cannot accept an overnight FedEx but they can receive express mail through USPS. If you've given yourself enough time (which is the best idea) then simply send the check certified mail. Make sure you keep a copy of the tracking for your records.

Some people have the option of having their payments directly withdrawn from their paycheck and delivered to the chapter 13 trustee that way.

This can be an easy way to insure that payments are delivered on time. It does not mean that you don't need to follow up on the payments. Direct withdrawals from your paycheck become the responsibility of your employer. There are always cases of human or bank errors so you need to follow-up and make sure the payments are getting from your paycheck to your chapter 13 trustee. Even if you see the payments deducted from your paycheck, you should still confirm with your bankruptcy trustee.

Additionally, if you are setting up a direct withdrawal it is likely to take a couple months to become active. During this time you would have to send the cashiers check or money order.

Making these payments on time are the key to your financial future. It's not something you should take lightly.

Chang and Carlin
The content found on the Chang & Carlin site is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about chapter 7 bankruptcy, chapter 13 bankruptcy, foreclosure services, real estate legal services, you are encouraged to call our law firm at 866-790-8601 or Request a Free Legal Evaluation. Chang and Carlin serves clients in Chicago, Schaumburg, Joliet, Warrenville, Waukegan, Illinois.