Can’t Pay Surplus Payments
Good afternoon. Any information you can provide is greatly appreicated.
I filed bankruptcy a few months ago and my surplus payment was $347.50. I told the trustee at the time that there was no feasible way I could pay that amount. I was told that the amount was the amount and that was it. My last payment has bounced and I simply don’t know what to do. What if I just don’t make the payments what are the repurcussions? I told the trustee that I was going to get a part-time job to cover the payments and he advised that I would then owe more because my surplus payments will go up. I’ve cut out all the non essentials and am sticking to a pretty strict budget. There just simply isn’t $347.50 left at the end of the month.
Thank you.
In this type of situation you must understand that you trustee has no discretion, where surplus exists as is calculated by the superintendent guideline you must pay the required surplus to be eligible for a discharge. Failure to pay the required amount will result in you having to remain in bankruptcy until the surplus is paid.
Now, if you are not able to pay the full amount of the surplus you are best advised to make what payments you can. While this will result in you being ineligible for an automatic discharge (due to failure to pay surplus as required) the court will very likely give you additional time to make the necessary payments (although, you also run the risk of the court enforcing a penalty for not complying with your original duties on a timely basis).