how do you determine delinquency when we have paid every month just not on time because we get paid bi-monthly
2 Answers from Attorneys
Youre question makes no sense. Delinquency on what? And if you owe something, how often you get paid has nothing to do with what you owe. Please repost.
It may be that your plan payments are structured bi-weekly instead of bi-monthly. For example, if your monthly payment is $100, and the deduction order or payment plan you have been given is for a bi-monthly payment, you would pay $50.00 twice a month. However, if the deduction order or payment plan is set up bi-weekly, your payment is $46.19 every 2 weeks. The problem arises if you or your employer is paying $46.19 each pay period, and you are only paid 2 times a month. Therefore the trustee is being shorted $7.62 per month. If your payments are higher than this, or this has been going on for several months, this can add up to a significant delinquency. I see this happen periodically, and it can be fixed by adjusting the payment or deduction order, so you would need to get with your attorney to fix it. I also see it in cases where, for some reason, the plan has a built in provision for an increase in monthly payments due to the ending of some other payment being made outside the bankruptcy plan, such as a 401k loan deduction, rent to own payment, or debt payment made by a non-filing spouse. If this was not the question you were looking to have answered, please re-post a more specific question.
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