How do I make Chapter 13 payments in the Western District of Missouri?

In the W.D. Mo., Chapter 13 payments are typically made through a wage order, where your employer withholds the payment from your paycheck and sends it directly to the Chapter 13 trustee. You can also pay through TFS (Trustee Filing System) at TFSbillpay.com via electronic payment. The first payment is due within 30 days of filing, even before plan confirmation.

How do I make Chapter 13 payments in the District of Kansas?

In the D. Kan., payments are also typically made through wage orders or through TFS (Trustee Filing System). The trustee's office provides payment instructions at the 341 meeting. Electronic payments via TFSbillpay.com are the preferred method. The first payment is due within 30 days of filing.

Can I modify my Chapter 13 plan if my income changes?

Yes. Under 11 U.S.C. section 1329, either the debtor, the trustee, or an unsecured creditor can request a plan modification after confirmation. Common reasons include job loss, income reduction, medical emergency, or increased expenses. Your attorney files a motion with the court proposing the modified plan. The court must approve the modification.

What happens if I miss a Chapter 13 payment?

Missing payments puts your case at risk of dismissal. The trustee or a creditor can file a motion to dismiss. In the Western District of Missouri, which has a 40.4% Chapter 13 dismissal rate, missed payments are the most common reason for dismissal. If you anticipate missing a payment, contact your attorney immediately to explore options like plan modification or temporary payment reduction.

Chapter 13 Payment Plans in Kansas City -- How Payments Work, Trustee Info, Modifications

Q: How are Chapter 13 payments calculated?

Chapter 13 payments are based on your disposable income -- the difference between your total household income and allowed living expenses. Your payment must be enough to pay all priority debts (taxes, child support), cure any mortgage or car loan arrears, and pay unsecured creditors at least as much as they would receive in a Chapter 7 liquidation. Above-median-income debtors must commit all projected disposable income for 5 years.

Q: What is the disposable income test?

The disposable income test determines how much you must pay in your Chapter 13 plan. It starts with your total household income and subtracts necessary living expenses. For below-median-income debtors, expenses are based on actual reasonable expenses. For above-median-income debtors, expenses are based on IRS standards. The remainder is your projected disposable income, which must be committed to the plan.

How Payments Are Calculated

The Disposable Income Test

Your monthly plan payment starts with the disposable income test:

Total household income: All sources -- wages, self-employment, pension, Social Security, rental income, support payments
Subtract necessary expenses: Housing, food, transportation, insurance, medical, child care, taxes
The remainder = projected disposable income: This is your minimum monthly payment to unsecured creditors

Your Plan Must Also Cover

Priority debts (paid 100%): Recent taxes, child support/alimony arrears, administrative claims
Secured debt arrears: Mortgage arrears, car loan arrears (to cure the default)
Ongoing secured payments: Regular mortgage and car payments (often paid through the plan or directly)
Attorney fees: Typically paid through the plan in Chapter 13
Trustee fee: The Chapter 13 trustee takes a percentage (typically 4-10%) of all plan payments
Unsecured creditors: At minimum, as much as they would receive in a Chapter 7 liquidation (the "best interests" test)

Plan Length: 3 Years vs. 5 Years

Below Median Income

Minimum plan: 36 months
Can extend up to 60 months
Expenses based on actual reasonable amounts
More flexibility on unsecured creditor payments
MO median (1 person): $56,847
KS median (1 person): $57,925

Above Median Income

Plan must be 60 months
All projected disposable income goes to plan
Expenses limited to IRS National/Local Standards
Higher payments to unsecured creditors
Full income limits by household size

Making Payments in Kansas City

W.D. Mo. (Missouri Side)

Wage order: Most common -- employer withholds and sends to trustee
TFS: TFSbillpay.com for electronic payments
First payment: Due within 30 days of filing
Payments begin before confirmation: You start paying immediately, even while the plan is being reviewed

D. Kan. (Kansas Side)

Wage order: Preferred method
TFS: TFSbillpay.com for electronic payments
First payment: Due within 30 days of filing
Payments begin before confirmation: Same rule as MO side

Plan Modifications

Life changes during a 3-5 year plan. Under 11 U.S.C. section 1329, you can request a plan modification after confirmation. Common reasons:

Job loss or income reduction: Lower your payment to match new income
Medical emergency: Add medical expenses, reduce payment
Income increase: The trustee or creditors may request higher payments
New debt (with court approval): Such as a car loan if your current vehicle breaks down
Surrender property: Stop paying for a car or house you no longer want

Your attorney files a motion for plan modification. The court must approve it, and the trustee and creditors have the right to object. Modifications are common and usually approved when justified.

If You Cannot Make Payments At All

Convert to Chapter 7: If you qualify, converting eliminates most debts without a payment plan. See converting chapters.
Hardship discharge: Under section 1328(b), the court may grant a discharge without completing the plan if your failure is due to circumstances beyond your control, unsecured creditors have received at least as much as in Chapter 7, and modification is not feasible.
Dismiss the case: Under section 1307(b), you can dismiss your Chapter 13 at any time. However, debts return in full and the automatic stay ends.

Frequently Asked Questions

How are Chapter 13 payments calculated?

Based on your disposable income (total income minus necessary expenses). Your payment must also cover priority debts, secured arrears, attorney fees, and trustee fees. Above-median income = 5-year plan with IRS expense standards.

How do I make payments in the Western District of Missouri?

Wage orders (employer withholds) are most common. Electronic payments via TFSbillpay.com are also accepted. First payment due within 30 days of filing.

Can I modify my plan if my income changes?

Yes. Under section 1329, you can request a modification for job loss, income change, medical emergency, or other material changes. Your attorney files a motion and the court must approve.

What happens if I miss a payment?

Your case risks dismissal. The trustee or creditors can file a motion to dismiss. Contact your attorney immediately to explore plan modification. The W.D. Mo.'s 40.4% dismissal rate is largely driven by missed payments.

What is the disposable income test?

Total household income minus necessary living expenses. Below-median debtors use actual expenses; above-median use IRS standards. The remainder is your projected disposable income committed to the plan.

Can I pay off my Chapter 13 plan early?

Below-median debtors can complete the plan early if all required amounts are paid. Above-median debtors must generally commit disposable income for the full 60 months, though paying off the plan early with a lump sum (inheritance, tax refund) may be possible with court approval.

Chapter 13 Payment Plans in Kansas City