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Is it OK to have a late payment with Chapter 13 bankruptcy?

You’ve been approved for Chapter 13 bankruptcy, and you’ve even made some payments, but things just don’t work out one month. You don’t have the capital you need to make the payment or you simply forget to make it. Either way, you miss the payment and you’re going to be late. Now what?

Generally speaking, you can still make the late payment and everything will be fine. That’s not to say that this is true in every case or that you should make a habit of it, but it tends to be all right.

The reason for this is that a lot of trustees take payments all month and then give that money out at the end of the month. The payment plan calls for monthly payments, after all. As long as you get it in before the month ends, it doesn’t matter if it came in on the 5th or the 15th or the 25th.

One problem that can arise is when you have a car payment or a mortgage payment that is being taken care of in this fashion. These may have more specific due dates, and so the money has to be to the trustee in time to make that payment.

Again, this is all just a rule of thumb, and not something that applies to every case. If you’re late repeatedly or if you’re very late, your case can be dismissed, meaning you no longer get the advantages of Chapter 13. Still, you probably don’t have to stress too much over one slightly late payment. Just make sure you know how the legal process works in Florida.

Source: Bankrate, “Is late Chapter 13 payment OK?,” Justin Harelik, accessed Jan. 21, 2016

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