What is the policy concerning the use of personal checks?
Beginning April 2007, the Trustee’s office will hold all plan payments made by personal check for a period of 15 business days before their distribution to ensure that the funds are good. This represents a 7-day extension of the existing policy, and applies only to personal checks. It will not affect plan payments made by employer check, cashiers check, money order, or attorney trust account check. This change could affect the timing of certain pre-confirmation adequate protection payments, depending upon the debtor’s plan. As a reminder, if a debtor’s personal check is returned for insufficient funds, the Trustee will assess a $10.00 returned check charge that will appear on the interim statement for the debtor’s case.
