Under the Bankruptcy Code, your first payment is due “not later than 30 days after the date of the filing of the plan or the order for relief.” 11 U.S.C. § 1326(a)(1). This means that once a case is filed, the trustee must have a payment in hand within 30 days. A payment mailed on the thirtieth day is considered late. Debtors should be aware that many trustees use out of state banks, so it may take several days for the payment to reach the trustee.
Some courts are very strict about the deadline for the first payment. In the Northern District of Texas, if a debtor is late making their first payment, the trustee will file an NOI (Notice of Intent to Dismiss Case). An NOI states that the debtor’s case will be dismissed after the seventh day following the deadline to make the first payment if no payment is received by the trustee. An NOI does not require a hearing. Debtors who know their first payment is going to be late should let their attorney know. Sometimes trustees will hold an NOI if a debtor’s attorney contacts them to let them know a payment is going to be late.
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