Monitoring their Collection:
Once a repayment plan; (either for a chapter 11 or a chapter 13 bankruptcy), it has been approved by the Bankruptcy Court, you must continue to closely monitor the case to ensure that the borrower is complying with the terms of the plan.
Generally, you will collect two types of payments under a repayment plan: a).- Plan Payments, and b).- Current Payments.
A).- Plan Payments▬ Also known as arrearages, these are past-due payments that are required by the repayment plan. The trustee usually collects them frrom the borrower and then disburses them to the creditors.
B).- Current Payments▬ You should also receive the regulary scheduled monthly payments(also known as POST-PETITION Payments) directly from the borrower (or , in some cases, from the trustee).
Luigi Mario FRASCINI
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