LaGrange Park Bankruptcy Attorney And the Chapter 13 Supplemental Pa...

Let’s talk about the supplemental payment that I like to send to the trustee.  This is not the first plan payment that is required within 30 days after the filing.  That payment should be coming out through payroll control.  The reason for the supplemental payment is that payroll does not always kick in as fast as it should.  Every payroll department works a little differently.   The payment has to be payable to the trustee.  It must be in the form of guaranteed funds.  It cannot be a personal check.  The trustee will not accept such payments from debtors. 

After the case is filed, we will send that supplemental payment right away.  The goal here is to have one full payment received by the trustee prior to the first meeting of creditors.  This helps ensure that some of the required items are in hand prior to the confirmation hearing and that future payment from payroll control keep the debtor current.  If the debtor is not current with plan payments at the time of confirmation, the trustee may not recommend the case for confirmation.  Having a supplemental payment on hand helps cure that possible scenario.