Your Chapter 13 Clients Are Failing for Preventable Reasons
In this video, a longtime debtor attorney, Patrick Schaefer, explains why he helped build TFS Bill Pay and how it supports Chapter 13 cases from start to finish. He walks through the debtor dashboard, the free attorney portal, real time reporting to trustees, and specialized tools like MoneyGram and e wage. The focus is simple: make Chapter 13 payments steady, predictable, and easy to track so more clients reach discharge and more attorneys collect the fees they have earned.
Frequently Asked Questions
- What is TFS and why was it created?
- How does TFS support Chapter 13 debtors beyond simply moving money?
- What access do debtors, attorneys, and trustees have inside TFS?
- What is MoneyGram and how does it help clients stay current?
- How does TFS support unbanked or underbanked clients?
- What is e wage and how does it protect client privacy?
- How does TFS handle clients with different pay schedules or benefit schedules?
- What does TFS cost compared to other payment methods?
- Where is TFS available and how many trustees use it?
- What if my Chapter 13 trustee does not already work with TFS?
- Is there any real downside to using TFS?
FAQ: What is TFS and why was it created?
TFS is a payment platform designed specifically for Chapter 13 cases. It was created by a debtor attorney who wanted a better way to support his own clients during their plans.
On the surface, TFS transfers money from the debtor to the trustee. Underneath that, every feature is aimed at one goal: help Chapter 13 debtors complete their plans and help attorneys protect the revenue that flows through those plans.
FAQ: How does TFS support Chapter 13 debtors beyond simply moving money?
Transferring money from a consumer to a trustee is not complicated. The support around that transfer is what usually breaks. TFS builds those support services in for you and your clients. For example:
- Automated payment reminders before the payment date
- Support if a client has a non sufficient funds event
- Clear visibility into their payment history and schedule
Those services are designed for Chapter 13, not for generic bill pay. The result is fewer surprises, fewer silent defaults, and a smoother path to discharge.
FAQ: What access do debtors, attorneys, and trustees have inside TFS?
Everyone involved in the plan has a way to see what is going on. Debtors get their own dashboard where they can log in, pick a payment schedule that matches their income pattern, and see when money is scheduled to leave their account. Attorneys get a separate portal that is completely free. From that portal, you can:
- Help less tech savvy clients set up their plan payments
- Confirm when the first payment is scheduled to move
- Monitor whether payments match the plan, Schedules I and J, and the budget you created
- Receive alerts if a client has an NSF or changes their payment schedule
Trustees have visibility as well. They can see payments and good faith efforts in real time, which makes it easier for you to show that a client brought a plan current or is trying to cure an arrearage.
FAQ: What is MoneyGram and how does it help clients stay current?
MoneyGram inside TFS began as a way to help unbanked or underbanked clients. Two trustees in the southern United States pushed for a solution for people who did not have a regular bank account. Today, TFS offers about 39,000 walk in locations where debtors can make a cash payment, including Walmart. A client can walk into Walmart at midnight on Saturday, make a guaranteed cash payment, and have that payment appear in real time on your dashboard and the trustee’s dashboard.
MoneyGram has grown into a powerful emergency tool. When a client falls behind and needs to bring a plan current quickly, you can ask them to use MoneyGram, then point the trustee to the real time record of that payment and head off motion practice.
FAQ: How does TFS support unbanked or underbanked clients?
For clients who do not have a traditional bank account, Chapter 13 can feel almost impossible if the only option is automatic bank draft. TFS addresses that in two ways.
First, through MoneyGram and other walk in options, which let clients pay in cash at tens of thousands of locations across the country. Second, by offering multiple payment schedules so that even clients who live on benefits or irregular income can line up payments with the way money actually enters their life. Together, those options make it much more realistic for unbanked and underbanked clients to finish a plan.
FAQ: What is e wage and how does it protect client privacy?
Historically, a wage order has been one of the most reliable ways to fund a Chapter 13 plan. The problem is the embarrassment that comes with a formal notice of garnishment landing on the employer’s desk. Many clients dread the idea of coworkers and supervisors finding out they are in Chapter 13.
The e wage product keeps the reliability of a payroll based payment while protecting dignity. To the employer, e wage looks like a standard split direct deposit. It appears that the employee is sending some money to a savings account and some to a checking account. Behind the scenes, the routing and account numbers are tied to TFS. Embedded in those numbers are the client identity, trustee, and case number. TFS receives the funds, matches the embedded data, and forwards the money to the trustee.
Your client still reaches regular payment through payroll, but they do not have to disclose their bankruptcy to the employer through a formal wage order.
FAQ: How does TFS handle clients with different pay schedules or benefit schedules?
Money moves through clients’ lives in different patterns. Some are paid weekly. Some are paid bi weekly. Some fund their plan entirely from a government benefit that arrives every third Thursday based on a birthday.
TFS is built around that reality. The platform offers eight different payment schedules, each designed to match a common pay pattern or benefit schedule.
The recommendation is simple. Encourage each client to choose the schedule that matches their income, then let automation, reminders, and support carry them through the life of the plan.
FAQ: What does TFS cost compared to other payment methods?
TFS uses a sliding fee structure and aims to be cheaper than buying multiple money orders and mailing them.
Key points:
- e wage is the cheapest and fastest option at $1.99 per transaction
- For direct payments:
- Under $100, the fee is $0.99
- Around $500, the fee is $2.99
These fees cover the banking costs and the technology that moves money instantly and keeps everyone informed. For many clients, that is less than the cost of several money orders, envelopes, and postage, and far more convenient and trackable.
FAQ: Where is TFS available and how many trustees use it?
TFS operates in every state in the country. The company works with about 90 percent of sitting Chapter 13 trustees.
Each day, trustees who use TFS receive a deposit into their account along with a data file that plugs directly into their accounting software. That automation saves significant staff time in trustee offices, which is one reason many trustees support the platform.
FAQ: What if my Chapter 13 trustee does not already work with TFS?
If your trustee is not in the 90 percent who already work with TFS, an email introduction can help. Almost all Chapter 13 trustees know TFS and see them at NACT events, where the company is a platinum sponsor.
An introduction gives TFS a chance to walk the trustee through the benefits for the trustee’s office, including the daily data file and reduction in manual work. Many trustees who have made that shift appreciate the time savings and the clean accounting.
FAQ: Is there any real downside to using TFS?
When asked why someone would not use TFS, the answer in the interview is direct. There is no practical reason not to, based on how it works today.
Some trustees still resist technology in general and are slow to adopt new tools. That hesitation is not specific to TFS so much as a reluctance to change the way things have always been done.
For debtor attorneys and their clients, the platform offers:
- Automation that matches real pay schedules
- Real time visibility for debtors, attorneys, and trustees
- Emergency and cash options through MoneyGram
- Privacy protection through e wage
- Low per transaction fees that stack up well against money orders
Put together, those features support plan success, help you safeguard your fees, and give your clients a much better chance at a smooth path to discharge.