Recently debtors in chapter 13 cases in the Western District of Michigan have reported receiving phone calls from a person claiming to represent the trustee.  The person then instructs the debtor to make trustee payments to a different P.O. Box which is not the correct payment address.  The person also requests personal information from the debtors such as social security numbers.  The court has requested that all debtors’ counsel notify their clients that the trustee has not changed payment procedures. The United States Trustee has also advised that if a debtor receives such a call to notify the office of the United States Trustee at (616) 456-2002.

This raises several potential problems in chapter 13 cases.  If the debtor makes a payment to the false address these payments will not be applied to the debtor’s chapter 13 plan.  This may create a delinquency with the trustee and stop disbursements to creditors receiving payments from the 13 trustee.  In turn, the delinquency may cause creditors to file for relief from stay due to the lack of payments.  The trustee may also even file to dismiss the chapter 13 case.  Typically, trustees are slow to file motions to dismiss cases when payments are not made.  The scam may lend trustees in Michigan to become more cautious which would create undue delay for creditors waiting for a case to dismiss for lack of payments.

If you have any questions, please contact Mr. David Yunghans, Esq. David is an associate in the bankruptcy group located in the Cincinnati office of Weltman, Weinberg & Reis Co., LPA. You can reach him at 513.723-2211 or .