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Frequently Asked Questions About Payments To The Trustee

When do I need to begin making payments to the trustee?

Where do I send my payments?

What form must the payments be in?

Is there a grace period for payments due to the trustee?

I cannot make my payment this month and my attorney told me to call the trustee's office to work something out. Can I make two payments or make a partial payment next month?

The debtor filed a modified Plan which provides for lower (or higher) payments. Will the court enter another Pre-Confirmation Order with the new payment amount?

If I'm current in payments to the trustee and a hearing is scheduled on an Order to Show Cause or Trustee's Motion to Dismiss because of past delinquencies, do I (or my attorney) have to go to the hearing?

The court said that I have to be current in payments to the trustee by the first of the month. Can I have until the fifteenth?

The court ordered that I pay adequate protection to one of my secured creditors, which I did not anticipate when I filed my chapter 13 Plan. Can I just go ahead and subtract that amount from my payment to the trustee?

May I please have the amount necessary to pay off my chapter 13 case in full?

Can you send me a report showing all payments received by the trustee and disbursed to creditors?

My chapter 13 case was just dismissed (or converted to chapter 7). When is the trustee going to return my money?

 
Can I pay my case off early?

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Answers To Questions About PaymentsTo The Trustee

When do I need to begin making payments to the trustee?

Within seven to ten days of your submitting a signed chapter 13 Plan to the court you will receive a Pre-Confirmation Order from the court indicating when to begin making payments, where to send the payments, and the amount of the payments. You will also receive a letter from the trustee providing the same information.

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Where do I send my payments?

Mail your payments to the following address:
Chapter 13 Trustee, Kelly Remick
P.O. Box 830
Memphis, TN 38101-0830

Do not bring or mail your payments to the trustee's office. This will only delay your account being credited.

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What form must the payments be in?

Personal checks will not be accepted by the trustee. Under no circumstances are you to mail a payment in cash. The trustee will accept money orders, cashier checks and certified checks. Money orders being available from numerous locations such as 7-11, AMSCOT etc. are the most common source used to send payments to the trustee. 

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Is there a grace period for payments due to the trustee?

a) All payments are due on either the 1st or the 15th of each month.

b) Each bankruptcy judge differs in his interpretation of the Bankruptcy Code and the Trustee endeavours to follow the ruling of each judge.

c) When a question arises, please review any relevant orders and call the Accounting Department in the trustee’s office.

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I cannot make my payment this month and my attorney told me to call the trustee's office to work something out. Can I make two payments or make a partial payment next month?

a) The answer is yes and no;

b) The trustee's office will not submit an Order to Show Cause or file a Motion to Dismiss for Delinquency in Payments to the Trustee until the debtor is more than thirty five (35) days delinquent.

c) If the court entered an Order Upon Order To Show Cause or an Order On Trustee's Motion To Dismiss For Failure To Make Payments And Granting Period To Cure Default, and the debtor thereafter becomes more than thirty (30) days delinquent, the court will then enter an order prepared by the trustee dismissing the case without further notice or hearing.

d) Any questions regarding this policy should be directed to the Accounting Department in the trustee's office.

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The debtor filed a modified Plan which provides for lower (or higher) payments. Will the court enter another Pre-Confirmation Order with the new payment amount?

The answer is no, unless the debtor takes another step to lower the payments.

a) The act of amending a Plan does not trigger the entry of another Pre- Confirmation Order. A Motion to Amend the Pre-Confirmation Order may be filed with the court.

b) If the trustee consents, the court may enter an agreed order reducing the pre-confirmation payments', otherwise the matter will be set for a hearing.

c) In general, the trustee does not object to amending the Pre-Confirmation Order.

d) If you intend to file a Motion to Amend the Pre-Confirmation Order, please be specific as to the amount and the effective date of the new payments. Also, please be sure to send the trustee’s office a copy of the motion.

e) No motion is required to increase the chapter 13 Plan payment. Just send a note along with the increased payment telling the Accounting Department that the payment corresponds to the Amended Plan.

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If I'm current in payments to the trustee and a hearing is scheduled on an Order to Show Cause or Trustee's Motion to Dismiss because of past delinquencies, do I (or my attorney) have to go to the hearing?

You may check the status of the debtor(s) payments on the internet, using the "trustee13.com" website or link to this information via the trusteeship's office website at "ch13tampa.com".

NEITHER THE TRUSTEE NOR ANYONE ON HIS STAFF WILL TELL ANY DEBTOR OR ATTORNEY NOT TO ATTEND A HEARING.

In cases where the trustee is not requesting the case to be dismissed with prejudice for one hundred eighty (180) days, and the debtor is current in payments prior to the scheduled hearing on the matter, the court will always enter the standard order which states, in part, that in the event the debtor thereafter becomes more than thirty (30) days delinquent in payments to the trustee, the trustee shall submit an order dismissing the case without further notice or hearing.

a) If the debtor is truly current at the time of the hearing, the trustee will simply state on the court record that the debtor is current in payments to the trustee and that the court will enter a standard order which reserves ruling on the trustee's motion.

b) If the debtor is not current in payments at the time of the hearing, the Judge will specify a date for the debtor(s) to have their account current.

c) If the account is not brought current, the court will enter an order dismissing the case. If the hearing is set for an Order to Show Cause with Prejudice, the debtor(s) and their attorney should always appear to defend their case if they do not want it dismissed with prejudice.

c) Judge Williamson has adopted a "Two chances and you're out" rule, meaning if the current case up for dismissal is a second case for the debtors (or more), the case will be dismissed with prejudice if the account is not brought current and kept current with the trustee.

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The court said that I have to be current in payments to the trustee by the first of the month. Can I have until the fifteenth?

The answer is no. The trustee cannot change the ruling of the court. For further information, call the Accounting Department.

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The court ordered that I pay adequate protection to one of my secured creditors, which I did not anticipate when I filed my chapter 13 Plan. Can I just go ahead and subtract that amount from my payment to the trustee?

The answer is no.

a) The Pre-Confirmation Order will need to be amended and, therefore, a Motion to Amend Pre-Confirmation Order must be filed with the court. If the trustee consents, the court may enter an agreed order reducing the pre-confirmation payments, otherwise the matter will be set for a hearing.

b) In general, the trustee does not object to amending the Pre-Confirmation Order given that the Plan will not be confirmed unless the Plan is adequately funded and meets all of the requirements for confirmation.

c) If you intend to file a Motion to Amend the Pre-Confirmation Order, please be specific as to the amount and the effective date of the new payments. Also, please be sure to send the trustee’s office a copy of the motion.

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May I please have the amount necessary to pay off my chapter 13 case in full?

a) Yes, if your chapter 13 Plan has already been confirmed, you may call our office at any time for an approximate payoff of your bankruptcy.

b) However, if you are ready to pay the bankruptcy in full and need an exact payoff, you must write to the Case Auditing Department at the trustee's office and request a payoff. Please keep in mind that we will ask for an explanation as to the source of the funds on an early payoff.


c) A payoff figure will generally be provided within fifteen business days, however, delays do occur.

d) Click on this link for: Payoff Request Form - 27 Kb

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Can you send me a report showing all payments received by the trustee and disbursed to creditors?

Yes. We send out reports showing payments received and monies disbursed semi-annually, however, any debtor or their attorney may call or write at any time and request a Status Report.

PLEASE NOTE: OUR OFFICE MUST HAVE THE DEBTOR'S PERMISSION TO RELEASE ANY INFORMATION TO A THIRD PARTY.

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My chapter 13 case was just dismissed (or converted to chapter 7). When is the trustee going to return my money?

a) If the chapter 13 Plan was not confirmed prior to a dismissal, any moneys held by the trustee, less the trustee's fees, will be returned to the debtor at least fourteen (14) days after the court enters the Order of Dismissal.

b) If the chapter 13 Plan was confirmed prior to the dismissal, any moneys received by the trustee prior to the entry of the Order of Dismissal will be disbursed to creditors pursuant to the Order Confirming Plan; any moneys received by the trustee following the entry of the Order of Dismissal will be returned to the debtor after fourteen (14) days;

If the chapter 13 case is converted (either by the debtor or the court) to a case under chapter 7, any moneys held, less the trustee's fee, will be forwarded to the chapter 7 trustee.

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Can I pay my case off early?

Be advised that if you are an above median income debtor, court approval must be obtained to pay your case off early. The Trustee will, in most cases, object to an early discharge of a case if the Debtor has not paid in at least thirty six (36) monthly plan payments on a sixty (60)month plan.

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