Frequently Asked Questions

ePay

What is ePay?

ePay is an approved method for making your chapter 13 plan payment by using your checking or savings account to make direct payments to the Trustee. In order to use this service you must have either an internet connection or touch tone phone, know your case number, last four digits of your social security number, your checking or savings account number, and have a valid email address.  Please note that phone payments require the use of a checking account.

I have forgotten my ePay password. How do I get a new one?

On the ePay login page, there is a link called “Password Help?” You will be asked for your Login ID and email address and the system will send you a temporary password to the email address associated with your online account. Once you receive that new password, enter it into the login page. You will then be prompted to change your password to one of your choice. When prompted to enter your old password enter the temporary password that you received via email to access your account.

Can I change my ePay password?

Yes, once you are logged in, click on ‘Change My Password’ under the ‘My Account’ section to change your password. You will have to answer two of your security questions first and then enter your old password followed by the new password.

Will I receive a confirmation email upon making my payment?

Yes, you will receive an email after scheduling a payment and an email once the payment has been processed. You will also receive an email if your payment has been returned due to insufficient funds in your bank account or if you entered an incorrect account number when scheduling your payment.

Do I have to use ePay?

No, you may send your payments to our lockbox address or request your payment be deducted by your employer from your wages.

Once I have enrolled do I have to use ePay every month?

No, you may send your payment to our lockbox address. Before doing so, you should make sure you have not selected recurring withdrawals through ePay.

What happens if my payment is returned as Non-Sufficient Funds (NSF)?

It is very important that before you start this payment process you verify your bank account has sufficient funds to cover the transaction. If you submit a payment without having enough funds in your bank account to cover the transaction, the result will most likely be a Non-Sufficient Funds transaction. If this occurs, your bank account will be overdrawn and you may suffer consequences from your bank. In addition, the Trustee may lock your account preventing you from using the ePay system for the duration of your bankruptcy case.

The system says my information is invalid.

If your case is a joint case and the last four digits of social security number do not work, try the last four digits of the other party in your case.

Is there a minimum or maximum to how much I can pay at one time?

Yes, the minimum and maximum are $2.00 and $15,000.00 per transaction, respectively. This is subject to change.

Why are my payments held for 10 business days?

This is done to prevent funds from being disbursed to the creditors in your case during the time when a payment could be returned as Non-Sufficient Funds (NSF). All funds received by this office are held for 10 business days for this reason. After that period, the funds are available for disbursement to your creditors.

What is the $1.00 Processing Fee?

This fee covers the cost for providing this service to debtors and the Trustee. The Trustee does not receive this money. You do not need to add the $1.00 fee to your payment when entering your payment amount; it will be added automatically and deducted from your bank account as part of your payment.

Can I make partial payments?

Yes. You may make several smaller payments through the month. However, please keep in mind that a $1.00 processing fee is charged each time you use the ePay service.

Plan Payments

What types of payments does the Trustee accept?

ePay, Wage Order, Cashier’s Check, Money Order. Our Payment Options page provides more information on these methods of payment. No personal checks are accepted.

Where do I send my cashier's check or money order?

Office of Trustee Kyle L. Carlson
2900 Momentum Place
Chicago, IL 60689-5329

Payments sent to Barnesville, MN will be returned to you.

Does the Trustee offer ACH?

The Trustee no longer offers ACH payment services for new debtors. Debtors can make recurring payments from a checking or savings account through the Trustee’s ePay system.

Can I change the due date for my plan payments?

The Trustee operates plan payments on a monthly basis. If you pay via money order, cashier’s check, or E-pay, one payment must be received by the trustee each month.

Contact Jamie if you want to modify the withdrawal date.

Can I change my plan payment amount?

Plan payment amounts will not be changed without a modified plan filed with the court.

Can I get a status report?

Yes. Your payments status and history is accessible at www.ndc.org.

I want to pay-off my plan early. How do I find out the pay-off amount?

If your plan pays less than 100% to your unsecured creditors, you may be required to increase that percentage to 100% if you are seeking to pay off your plan early. Otherwise, it is unlikely that your plan can be paid off early. Contact your attorney or the trustee for more details.

Delinquency

I'm late with my plan payments. Can I make them up at the end?

If you are behind on plan payments and/or received a motion to dismiss your bankruptcy case for failure to make plan payments, you should contact the trustee and your attorney immediately. There may be options to get your payments current and avoid dismissal of your case.

Disbursements

When does the Trustee mail the disbursement checks?

Approximately the 25th of each month.

Claims

How are Creditors Paid?

There are three basic types of claims: priority, secured, and unsecured. First, the Trustee pays creditors with claims on your property (secured claims) and creditors holding claims due to such debts as child support and delinquent taxes (priority). Finally, the Trustee pays everyone else (general unsecured claims). Priority and secured creditors are paid pro-rata each month from funds that are available for distribution, unless the plan provides otherwise. This order of disbursement may be superseded by the terms of a confirmed bankruptcy plan.

How do I file a claim?

For Minnesota cases, a proof of claim form can be completed and submitted online through the Minnesota Bankruptcy Court website.

For North Dakota cases, a proof of claim form can be completed and submitted online through the North Dakota Bankruptcy Court website.

Do not send a proof of claim to the Trustee’s office.

Objections / Motions to Dismiss

The trustee objected to my plan. What should I do?

Contact your attorney to discuss the objection. Your attorney and the trustee will also discuss the objection and work to find a resolution. Almost all issues are resolved by communication cooperation between the trustee, debtors’ attorneys, and debtors. It is important that debtors communicate with their attorneys during this period, as some additional action may be required. The trustee often requests additional information and debtors should diligently and timely fulfill those requests.

A creditor objected to my plan. What should I do?

Contact your attorney to discuss the objection.

What happens if I receive a motion to dismiss?

Contact your attorney to discuss the motion to dismiss. The most common reason the trustee files a motion to dismiss is failure to make plan payments. You should contact your attorney immediately. Depending on the facts of your case and the reasons for default, you may be able to avoid having your case dismissed.

Confirmation Hearing

What is the confirmation hearing?

It is at the confirmation hearing that your proposed plan is approved. The hearing is conducted before the bankruptcy judge assigned to your case and takes places following the 341 meeting of creditors.

I attended the 341 meeting of creditors. Do I also need to attend the confirmation hearing?

You should not attend the confirmation hearing unless instructed to do so by your attorney. Even if there is an objection by the trustee to your plan, the trustee and your attorney will work to resolve that objection. The confirmation hearing may be continued to a future date in order for all the trustee’s concerns be resolved. If there is an objection or motion to dismiss filed by a creditor, you should consult your attorney as to whether or not you should attend the confirmation hearing.

Sale of Property

Do I need permission to sell my house, land, or personal property?

It may be necessary for you to obtain court approval before you sell, or otherwise dispose of any property, both real and personal. You should consult your attorney for legal advice on this issue.

Changes in Income/Employment

My income has increased. Do I need to report it to the trustee? And will it affect my plan payment?

You should notify the trustee, in writing, of any increases in income over the inflation rate, including bonuses. The trustee may request updated schedules showing your current income and expenses. Based on the facts of your case, the trustee may request that your plan payment be adjusted.

I changed jobs. Should I report the change to the trustee?

Yes. You should report the change in writing and submit your most recent paystub from your new employment.

I lost my job and can’t make my plan payment. What should I do?

You should contact your attorney immediately. Your attorney can discuss whether a downward adjustment of your plan payment would be appropriate.

Inheritance, Gifts, Legal Settlements, Lottery Winnings

I received a windfall (life insurance proceeds, gift, etc). Do I need to report this to the Trustee?

Yes. You have an ongoing obligation throughout your bankruptcy plan to notify the trustee, in writing, of the receipt of any windfall, including (but not limited to) inheritances, life insurance proceeds, gifts, settlement, and lottery winnings.

Gambling and Gambling Winnings

Am I allowed to gamble during my Chapter 13 bankruptcy plan?

Debtors should not gamble with disposable income. It is the Trustee’s position that the use of disposable income to gamble is an abuse of the provisions, purpose, and spirit of chapter 13. If the Trustee discovers that you are using disposable income to gamble, the Trustee may move to dismiss your case. The Trustee may also request that you turn over your winnings for the benefit of your unsecured creditors.

Miscellaneous

I need to buy a new car, and the dealer says I have to get a letter from the Trustee. Can I get a letter from the Trustee?

The Trustee cannot grant permission to incur debt. The Trustee may issue a letter of no objection depending on the debt you wish to incur and its effect on your plan payments.

My attorney won't answer or return my calls, what should I do?

Your attorney is required to promptly respond to the debtor’s questions throughout the case. Contact the Trustee if your attorney is not answering or returning your phone calls.

Other than adversary proceedings in which the original attorney has not yet made an appearance, your attorney is required to represent you in bringing and defending all matters in the bankruptcy case until a substitution of attorneys is filed or an order is entered allowing the attorney to withdraw, as specified in the Notice of Responsibilities of Chapter 13 Debtors and Their Attorneys and in the Local Rules.