Paydays can arrive at different times during the month — weekly, biweekly, monthly. So, why should your Chapter 13 bankruptcy clients be locked into payment schedule that doesn’t give them the financial flexibility they need?
They don’t have to be.
With TFS BillPay, our users can pay whenever it is best for them, and they can do it from the privacy of their home using one of our flexible payment options.
The advantages of debtor making multiple payments that match their cash flow benefit not only them, but the attorney and trustee as well.
For instance, if a debtor’s total payment is $600, breaking that up to match the pay schedule of twice a month would mean half the monthly plan payment of $300 would be with the trustee and not just sitting in the debtor’s bank account waiting until the full amount accumulates.
This lessens the chance there will be a full month’s default if the debtor runs into trouble.
Paying a portion of the amount every paycheck would also remove the temptation for the debtor to use the money for life’s other expenses.
And, paying out the trustee payment when the paycheck arrives also supports the debtor living within the schedule J budget.
“I liked the option of the weekly automatic withdrawal. It was less painful that way and I didn’t have to worry about being late,” recent graduate John K. wrote to TFS.
TFS matches trustee payments to our user’s real-world income flow. This is the closest alternative to a direct payroll deduction without intruding on privacy.
Attorneys can highlight the payment flexibility TFS offers to their Chapter 13 clients as a best practice borrowed from other industries, ensuring payments feel natural and sustainable.
Nearly 53% of Millennials and 49% of Gen Z expressed a desire for more flexible payment options.
Having adjustable payment options helps consumers budget more effectively, reduces stress of meeting schedules that don’t match their cash flow, and decreases delinquencies.
Flexible payments give consumers the ability to plan ahead and pay on time, and helps them stay on track, according to Buildium, a property management software company.
For those going through bankruptcy, it can be a time of great uncertainty. A flexible payment schedule can give them back some control of their lives, lower their stress levels and rebuild their confidence.
TFS has seven different payment options so users can choose what works best:
- Autopayments: Weekly, biweekly, monthly and twice monthly.
- Manual payments can be made anytime and as often as needed.
- Users can pay with cash using MoneyGram.
- With TFS users can pay with a Debit Mastercard
The easy-to-use TFS platform, lets users make any changes by themselves.
“The TFS dashboard helped me with a lot of useful info about my account,” wrote Efrain E.
Flexible payment solutions are more than a convenience -they can be a lifeline. TFS meets users where they are, further supporting them in every step of their bankruptcy journey.
“It was a long process!” wrote Margaret H., who felt good about finishing up her plan payments. “Having all my bankruptcy data online was great, I could check balance for instant feedback. Thanks so much for your help.”
