What Should You Expect?
Clients in Chapter 13 bankruptcy can make their Chapter 13 plan payments several ways.
In Iowa the Chapter 13 trustee doesn’t accept personal checks and can’t do withdrawals from bank accounts but money orders or cashier’s checks can be mailed to the trustee each month.
The debtors’ name and case number should be put on the money order or cashier’s check.
The best way to make plan payments is a wage deduction order.
These wage deductions can be structured so that the entire payment is deducted once each month or deductions can occur every pay period and even from each debtor if filing jointly with a spouse.
By having a wage deduction order created debtors are more likely to stay current on payments and avoid motions to dismiss from the trustee.
The trustee will give debtors a specific plan payment date for each month but it’s generally only important to make sure the payment is always made during the month it is due.
If you’re interested in learning more about how Chapter 13 works contact us.