How Payments Are Collected
The Chapter 13 trustee collects your monthly payment and distributes it to creditors according to the confirmed plan. Most courts require payroll deduction -- your employer sends the payment directly to the trustee before you receive your paycheck.
If you are self-employed or your employer cannot accommodate payroll deduction, you make payments directly to the trustee, typically by check, money order, or electronic payment.
What Happens If You Miss a Payment
Missing a plan payment is one of the most common reasons for Chapter 13 dismissal. The trustee will typically file a motion to dismiss if you fall behind. You usually have an opportunity to cure the arrears before the court grants the motion.
If you anticipate missing a payment due to temporary circumstances, contact your attorney (or the trustee if pro se) immediately. Proactive communication is far more effective than waiting for a motion to dismiss.
Grace Periods and Catch-Up
Most trustees allow a short grace period (typically 10-15 days) before reporting a missed payment. However, this varies by district and trustee. Do not rely on grace periods as a regular practice.
If you fall behind, you may be able to catch up by making extra payments or by filing a plan modification to adjust the payment schedule.
Learn about plan modification
Plan Modification Guide