In Pinal County, does the bankruptcy trustee require "conduit" mortgage payments in a Chapter 13?

The Trustee website should indicate the answer - but so should the Plan form used in this district. Conduit payments are typically required when the mortgage payments are delinquent. Conduit payments provide an assurance to the Trustee that the ongoing mortgage is being paid & that a person qualify for the benefits of Chapter 13. The downside is the large commission the trustee earns on your conduit payment. Hope this perspective helps!

Yes. Pinal County is in the Southern AZ jurisdiction, which requires that if you are behind on any part of your first mortgage, you must make a provision in the Ch 13 Plan to make mortgage payments through the Plan. In some cases, you can file a motion to be excused from this requirement but it is not automatic. If you are current on your first mortgage at the time of filing, the conduit is not required. The major disadvantage is that you will pay slightly more in that the trustee's commission is taced on top of the increased payment. There are many advantages, mostly having to do with the lender not being able to get away with unauthorized charges and a court declaration that you are current at the end of your Plan. You should really go through all of these requirements with your bankruptcy attorney.

Atty Rorex has summed up the law. I would only add that you should consult with an experienced ch 13 attorney before you file. Ch 13 is not for amateurs and only an experienced counsel can help you see your options and help you decide how to proceed. Good Luck.

Usually if behind on mortgage payments when a case is filed local rule requires that mortgage payments that come due during your Plan be paid through the Trustee. A negative of a 'conduit plan' is having a higher payment to the Trustee and administrative costs. The positive is that by staying current on bankruptcy/Trustee payments you also stay current on the mortgage.