The Government Shutdown and Chapter 13 Plan Arrearages – What Do We Do Now?

By Jan M. Sensenich, Chapter 13 Standing Trustee for the District of Vermont

As we reach the end of the first month of the partial government shutdown, with no end in sight, 800,000 federal workers have started missing their paychecks. As the shutdown continues, Chapter 13 trustees are weighing how best to address the inevitable question from federal government employee debtors: “I will not be able to make my plan payments until I start getting paid- what will happen?” Most trustees have standards and office policies addressing such things as when they send delinquency notices to debtors . . .

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