Plan payments are essential to a successful Chapter 13 case. Not only does the Chapter 13 plan payment pay something to your unsecured creditors (credit cards, personal loans, repossession deficiencies, etc.) but it can be utilized to make mortgage payments or vehicle payments.
The Western District of Michigan has two Chapter 13 trustees in our district. Trustee Brett Rodgers and Trustee Barbara Foley. Our local district has a local court order that generally requires that payments be made by payroll order which involves your employer withholding and forwarding the payments to the trustee’s lockbox.
Sometimes a debtor in Chapter 13 doesn’t have a job and needs to pay directly by alternative means. In these situations, both trustees will allow payments using the third-party processor TFS (www.tfsbillpay.com). There is a fee to use this service. Trustee Foley offers an additional ACH program where the funds come directly out of your bank account (without any cost).
There could be a situation, such as being off of work, where it easiest to send in a money order. In those situations, the debtor will want to mail the money order to the trustee’s lockbox with their case number printed on it.
Trustee Rodgers’ lockbox:
Chapter 13 Trustee, Brett N. Rodgers
2482 Momentum Pl
Chicago, IL 60689-5324
Trustee Foley’s lockbox:
Chapter 13 Trustee, Barbara P. Foley
PO Box 1818
Memphis, TN 38101-1818