What can I do if I fall behind on payments? · An essential requirement of Chapter 13 is that you make payments on the plan, and sometimes to other creditors. This describes what to expect if you miss payments and what options may be available to you.
The Trustee is answerable to your creditors to collect and distribute your plan payments. How closely he monitors your payments depends upon the status of your case:
Payments not made before the Trustee's Recommendation is due. The Trustee's recommendation is due 90 days after the meeting under 341 which you must attend. If you have not made payments at that time, the Trustee may dismiss your case without notice to you. Local Order re: Procedures for Confirmation of Plans, Amended or Modified Plans, Moratoriums and Dismissals.
Payments missed when the Trustee makes his Recommendation. · The Recommendation which the Trustee makes about 90 days after the 341 meeting will ordinarily require that you be current in your plan payments. Often, but not always, the Trustee will specify any payments are missing. If your plan payments are not current within 30 days from the date of the Recommendation, the Trustee will lodge an order dismissing your case without further notice. The requirement to be current in plan payments will include any which become due during the 30 days following the recommendation.
Example: If your plan payments are due on the 15th day of each month, and the Trustee's Recommendation is is made on the 1st, in order to avoid dismissal you must have made all payments due before the Recommendation, plus the payment due on the 15th in the month following the recommendation.
Payments missed after the plan is confirmed. Once the plan is confirmed--after the Trustee's recommendation and a order confirming the plan has been signed by the court--your plan payments are under less immediate scrutiny. It has been the practice of Arizona Trustees that they take no action until a total of two plan payments have been missed. When you have missed two payment, the Trustee usually sends out a letter stating that if you do not bring your payments current, a motion will be filed seeking to dismiss your case. If you do not bring your payments current, the Trustee will file a Motion to Dismiss your case.