One of the most common reasons that a plan will run longer than originally estimated is that claims filed by creditors and allowed are different than what you originally scheduled. The Trustee uses the creditor claim amounts. You should, therefore, review all claims filed in your case and pay particular attention to the periodic reports that the Trustee sends to you. You must file a formal objection to claims with the Bankruptcy Court (and serve or mail copies to the Trustee and to the Creditor or the Creditor’s Attorney) if you have any disagreement about a claim.

Another common reason that a plan will run longer than originally estimated is the filing of post-petition claims by mortgage companies and taxing authorities. It is critical that you pay all post-petition mortgage payments on time and in full and that you pay all taxes that become due after you have filed your Chapter 13 case.

Other reasons that your plan will run longer may be that secured claims scheduled did not include interest to the secured creditor, Trustee’s fees may not have been taken into account or may have changed during the time your plan is running, plan payments may have been missed, refunds of plan payments may have been requested and granted.

Plan payments must be in the form of a cashier’s check, bank check or money order or employer’s check. Personal checks and cash are not permitted for Chapter 13 payments. You should write clearly your name and case number on the payment. Your first plan payment is due thirty (30) days after your bankruptcy plan is filed and on that date each month thereafter. If timely payments are not made, the Trustee may ask the Bankruptcy Court to dismiss your case. The Trustee’s Office will deduct plan payments from your paycheck when that is available. You have a much better chance of successfully completing your Chapter 13 plan when your plan payments are deducted from your paycheck.

If your plan payment is deducted from your paycheck, it is still your responsibility to ensure that the payments are made. If you get a paycheck and your plan payment has not been deducted, you should immediately make your plan payment by money order, cashier’s check or bank check to the Trustee’s Office.

All payments to the Trustee’s Office should be mailed to:

Office of Chapter 13 Trustee
Bin 730
Memphis, TN 38101-0730

Plan payments may not be made in person.

Again, make sure to save all receipts for all payments you send or your paycheck stubs if the payments are deducted. If there is any discrepancy, you will have a record of your payments and there will be a method of tracing the payments. If there are any hearings related to discrepancies in payments with either the trustee or a creditor, be sure to bring the receipts that you have to court on the date of your hearing. Provide copies of the receipts to your attorney as soon as you know there is a discrepancy or you receive notice of a motion or hearing regarding your payments.