The Bankruptcy Code mandates that payments must begin within 30 days of filing your Chapter 13 bankruptcy plan, states Broadview bankruptcy attorney. Now, the plan can be filed technically 15 days after your Chapter 13 petition is filed. However, in my office, we like to file the bankruptcy petition and the plan together as one document. Thus, within 30 days after filing the petition in my office, the debtor is required to make plan payments each month.
Another thing that I do in my office is I require the first plan payment upfront. What I mean by that is once the case is filed, I will immediately have a plan payment in hand from the debtor that I will forward onto the Chapter 13 trustee. By doing this, the Chapter 13 trustee sees that the debtor is serious about their repayment plan. The debtor obviously is willing to make payments because there is already one being sent immediately to the trustee before that 30 day period. This also shows the trustee that the debtor is able to make the trustee payment and the schedule sometimes will be viewed much more favorably than if a debtor has not made any plan payments.
Additionally, to get a case recommended for confirmation, the debtor must have commenced making plan payments. There is no way to get a case recommended for confirmation if there has been no plan payments made. Thus, by having that first plan payment made immediately and then subsequent payments made within 30 days, the Chapter 13 trustee is in a greater position to recommend the case for confirmation. Additionally, if someone is on payroll control, meaning the Chapter 13 plan payment comes out of their payroll, then as long as that person stays employed, we know they are going to have success as far as their Chapter 13 trustee payment goes.